Residential unit sales emerged as the primary growth driver for Abu Dhabi's real estate market in 2025, expanding from approximately AED19 billion in 2022 to AED76 billion ($20.69 billion) in 2025, representing a fourfold increase driven by off-plan sales growth and master-planned community development.

Abu Dhabi's residential inventory reached 401,000 units in 2025, with occupied units growing at 6.6% annually compared to supply growth of 2.8% since 2022, says a report from Abu Dhabi Real Estate Centre (ADREC), the custodian and regulator of Abu Dhabi's real estate sector.

Abu Dhabi's real estate market achieved 44% growth in transaction values hitting record levels of AED142 billion in 2025, as reported by TradeArabia on February 20. Real estate sales drove the overall sector, accounting for a record-high AED93 billion in 2025, with residential units sales jumping 67% to AED76 billion.

The market's international appeal is demonstrated through foreign investment patterns, with resident expatriates and non-resident foreign investors driving 62% of total 2025 residential sales value. Top 10 developers captured 91% of residential off-plan primary sales value totalling AED50 billion, while the top 10 projects contributed 32% of total sales at AED24 billion.

Price growth

The Real Estate Market Report 2025 says apartment prices recorded their sharpest annual increase in recent years, with sale prices rising 19% and new lease prices climbing 16% between 2024 and 2025. 

Villa performance mirrored this strength, with sales prices increasing 13% and rental yields demonstrating robust 14% growth in investment zones. 

The market's structural health is evidenced by rental units comprising 71% of total occupied units, driving strong rental yields across the emirate. 

Future supply projections indicate continued momentum, with residential stock expected to grow 2.9% annually through 2030, supported by 43,000 new units anticipated from investment zones where 98% of new apartments will be delivered.

Commercial real estate achieves peak occupancy 

Abu Dhabi's commercial sectors demonstrate exceptional performance, with retail and office markets reaching multi-year occupancy highs driven by economic expansion and constrained supply growth. The retail sector achieved total supply of 3.8 million sq m by 2025, with street retail and community malls forming the market backbone at 44% of total gross leasable area. Overall retail occupancy surged to 94% in 2025, reaching a five-year peak supported by demand growth outpacing 2.3% annual supply increases, resulting in new lease prices accelerating 8% year-over-year. 

Office market performance proved equally robust, with total supply reaching 3.4 million sq m and occupancy maintaining structural strength above 96%. Supply growth of less than 2% compared to 2024, combined with 9% job growth and 6.4% expansion in professional roles, drove new office lease prices up 11% in 2025. Yas Island emerged as the leading office destination, driving 20% of new supply between 2022 and 2025, highlighting geographic diversification within the emirate's commercial landscape.

"The report demonstrates Abu Dhabi's position as a global real estate destination of choice, with a sector defined not only by growth, but by stability, transparency, and long-term confidence." said Rashed Al Omaira, Director General of ADREC. " The data confirms that demand fundamentals remain strong, supply expansion is disciplined, and price movement is occurring in an orderly and sustainable manner. These dynamics reflect the strength of Abu Dhabi’s economic foundation and the effectiveness of a regulatory framework designed to safeguard investors while enabling responsible development."

"As we look towards 2030, continued planning discipline, advanced digital infrastructure, and strengthened governance will remain central to shaping a resilient real estate ecosystem that supports Abu Dhabi’s position as a leading global destination to live, invest, and thrive.” - TradeArabia News Service