According to the Savills Abu Dhabi Residential Market in Minutes – Q1 2025 study, the volume of residential real estate transactions in Abu Dhabi decreased by over 40%, but prices rose.
According to the Savills report, despite a slowdown in transaction volumes, the market is still resilient due to the emirate’s increasing global appeal, limited new supply, and ongoing demand.
According to Oxford Economics, Abu Dhabi’s GDP increased by 3.8% in 2024, while the UAE’s economy is expected to expand by 4.7% in 2025.
Abu Dhabi real estate supply
For the eighth year in a row, the emirate was also awarded the safest city in the world, further solidifying its standing as a top travel destination for both individuals and corporations.
The city’s appeal as a destination to live and invest is being further enhanced by ongoing investments in cultural, educational, and leisure infrastructure, such as the Saadiyat Cultural District and the announcement of Harrow International School’s first GCC campus.
Less than 1,500 residential units were sold in Abu Dhabi Municipality in Q1 2025, which is the lowest quarterly total since Q2 2022 and a 39% year-over-year decrease.
Transaction levels were impacted by the 10 new projects that came to market during that time, each of which delivered fewer than 3,000 units.
Due to this constrained pipeline, there is now competition in the leasing, secondary sales, and off-plan markets; waiting lists for high-quality buildings are resurfacing, and off-plan units are becoming more and more expensive.
Market-wide average sales rates increased 13.4% year over year, from AED14,100 ($3,840) per square metre in Q1 2024 to AED16,200 ($4,410) per square metre in Q1 2025.
Stronger demand for move-in ready stock is indicated by the rise in the percentage of ready property transactions, which increased to 68% from 44% in 2024 and 25% in 2023.
Capital values in the villa segment rose by 7% on Al Reef, 10% on Yas Island, and 26% on Saadiyat Island, indicating a sustained desire for upscale, lifestyle-driven constructions.
Apartment values on Al Raha, Reem Island, and Yas Island stayed constant, but Saadiyat Island saw the largest year-over-year increase at 22%.
In Q1 2025, finished units made up the majority of flat sales, which represented for 63% of total activity.
Ali Ishaq, Head of Residential Agency, Abu Dhabi at Savills Middle East, said: “Demand is clearly present, particularly within well-connected and master-planned communities. The shortage of new launches has channelled activity towards the ready market, and we are seeing this reflected in both transaction share and rising capital values.”
The survey claims that larger changes in expatriate families’ attitudes, fueled by recent immigration reforms and the growth of the education sector, are continuing to stimulate interest in the Abu Dhabi residential market.
Future demand is also anticipated to be increased by the announcement of a Disney theme park on Yas Island and the arrival of foreign developers.
Over the upcoming months, Savills expects the ready market to continue to be active, with strong demand for premium residential real estate, especially in established neighborhoods.
