During the first half of 2025, the Abu Dhabi real estate market demonstrated consistent growth, solidifying its position as an ideal destination for long-term investments. According to local experts, increased institutional interest, infrastructure development, and balanced fiscal policy were the key factors for success.
Price Dynamics: From Plans to Reality
Over the past six years, the off-plan segment (under construction) has grown from an average price of AED 487 per square foot in 2019 to a peak of AED 1,350 in 2024. Then, it adjusted to an average price of AED 1,127 in the first half of 2025. This is due to more moderate pricing policies by developers and market saturation. Meanwhile, official statistics do not account for markups in the secondary market, which makes its actual volume higher than reported.
Ready-built housing has also undergone changes: it dropped from 966 dirhams per square foot in 2019 to 680 dirhams at the height of the pandemic, then increased to 1,086 dirhams in 2025. This was due to improvements in property quality, increased interest from end buyers, and the appeal of immediate occupancy and quick rental potential.
The price gap between completed and under-construction properties narrowed to AED 41 per square foot, indicating market maturity and greater buyer awareness.
Yield and investment attractiveness
The average gross yield on residential property rentals has ranged between 5.9% and 6.3% over the past five years. In the first half of 2025, the figure was 6.2%, explained by price stability, steady rental demand, and population growth in the emirate. Abu Dhabi's zero property tax, transparent pricing, and low transaction costs make it one of the most attractive markets for income-generating investments in the region.
Leaders and premium locations
Al Reem Island became the leader in terms of the number of transactions thanks to its affordable mid-range apartments. Within six months, prices increased by 10.7%, reaching AED 1,194 per square foot. Nurai Island and Saadiyat Island remain the most expensive areas at AED 3,068 and AED 2,342 per square foot, respectively, thanks to their exclusivity and premium infrastructure.
Growth drivers in 2025
The leading factors in market development were:
- Infrastructure projects: The UAE's national rail network is close to full integration, and launching high-speed service will reduce travel time to Dubai to 30 minutes.
- Technological innovations: The introduction of the Madhmoun blockchain platform increased transaction transparency.
- The inflow of global investors is another factor, especially against the backdrop of the opening of the region's first Disney theme park on Yas Island and the expansion of the Abu Dhabi Global Market, which has attracted corporations such as Morgan Stanley and BlackRock. Financial stability is another factor, as demand for inflation-linked assets with stable cash flows strengthens the position of Abu Dhabi real estate as a reliable asset.
Office Real Estate Market
The premium Class A office segment in free economic zones has reached an occupancy rate of over 95%. Outside of the free zones, the occupancy rate remains stable at 90.3%. New, modern buildings are overtaking outdated ones, creating a gap in yield and demand.
Forecast for the second half of 2025
Abu Dhabi will retain its status as a key center for investment in the GCC thanks to its stable policies, large-scale infrastructure investments, and transparent regulations. Despite global economic instability, the UAE capital continues to offer investments with long-term growth potential and protection against inflation.
Despite high global interest rates, inflationary risks, and geopolitical instability, Abu Dhabi stands out for its predictability, investment appeal, and capacity to generate long-term returns. Experts say that for investors seeking regional diversification, the case for investing in the emirate's real estate is only getting stronger.