A recent report published by the dubizzle platform, indicated that Abu Dhabi’s real estate market grew steadily over both segments (purchase and rental) in Q1 2025. The news supports increased confidence in the growing market as a result of rising demand. The growth has been particularly observed across specific areas that have showcased better quality construction, urban infrastructure, and investment return.
Yas Island was the most popular area for purchasing luxury apartments. The related average selling price in this area was AED 1.87 million, with a 2.54% quarterly increase, while Yas was also at the forefront of the luxury villa market with an average villa price of AED 4.68 million and an average annual rent of AED 229,000, with a 1.33% increase.
Al Raha Beach claimed the largest share of luxury apartment rental value at an average annual rent of AED 143,000. The best return on investment (ROI) was Saadiyat Island for luxury villas (5.6%) while Yas Island claimed the luxury apartment market at 6.99%.
In the affordable housing market, Al Reem Island was the best location to purchase affordable apartments. The average selling price at AED 1.54 million and ROI of 7.31%, this had an increase in price per square foot of 3.57% in the last quarter.
For affordable apartment rentals, Khalifa City was the best location with an average annual rent of AED 44,000. In the budget villa space, Al Reef was the best location, with a villa average price of AED 2.21 million and a ROI of 6.23%. Mohammed Bin Zayed City was the best area for affordable villa rentals at AED 153,000 annual rent. Al Reef had the best returns overall with 6.23% for villas and 10.08 for apartments.
There was also strong activity in off-plan (pre-construction) real estate. In luxury off-plan apartments, the highest demand came from Yas Bay, Saadiyat Cultural District, and Al Maryah Vista 2, which had average prices of AED 2.02 million, AED 4.45 million, and AED 1.11 million, respectively.
In the affordable off-plan apartment segment, the biggest demand was for Reem Hills, Royal Park, and Al Reeman 1, with prices of AED 1.65 million, AED 934,000 and AED 793,000, respectively. In luxury off-plan villas, Yas Acres, Saadiyat Lagoons, and Al Jurf Gardens had the largest demand, with average prices of AED 5.56 million, AED 8.98 million, and AED 5.36 million, respectively. In affordable off-plan villas, Al Reeman 2, Bloom Living, and Al Naseem Community were the most popular, with prices between AED 3.92 million and AED 4.1 million.
The dubizzle report indicates that in Q1 2025 the majority of areas in Abu Dhabi saw price increases; Especially the best areas in Abu Dhabi for buying property, which continue to be highly popular with investors.. There were a couple of areas that did experience price declines: Al Jubail Island’s price per square foot decreased by 1.74% and likewise The Marina saw a decrease of 1.20%. In terms of rental price declines, overall annual villa rental prices in Shakhbout City fell by 4.17% and in Al Reef it declined by 2.90%.
Overall, Abu Dhabi’s property market is positive and stable, and investor confidence remains strong interest in established communities and new developments. A positive outlook also indicates a likelihood of further growth over the next few years.
In Q1 2025, the Abu Dhabi real estate market extended the momentum upwards in both luxury and affordable segments. Current prices, impressive ROI, and excitement around off plan projects are all representative of investor continued interest and confidence in Abu Dhabi real estate. The average quality of life and ROI represents areas like Yas Island, Al Reem, and Saadiyat leading many interests. Penalties in slight declines in a few areas prove that analysis is paramount before buying. The overall outlook for Abu Dhabi’s real estate market remains positive and presents many opportunities for local and offshore investors.
Source: https://www.propertynews.ae
