Abu Dhabi’s residential property market recorded a record AED73.2b ($20b) in sales in 2025, as transaction volumes climbed 55% year on year to about 22,400 deals, according to property consultancy Cavendish Maxwell.
Off-plan properties led market activity, making up 71% of all sales, driven by new project launches that offered flexible payment plans and developer incentives, the firm said in its latest market report.
Off-plan transactions surged 68% to around 15,900 deals, up from 9,400 in 2024, whilst ready property sales also rose by 31%.
About 7,000 new residential units were delivered in Abu Dhabi during 2025, increasing total housing supply to roughly 315,000 homes. Around 15,900 additional units are scheduled for completion in 2026, though historical trends suggest actual handovers may fall between 6,500 and 9,000.
Andrew Laver, director at Cavendish Maxwell Abu Dhabi, said the capital’s residential market reached unprecedented levels in 2025, reflecting strong buyer demand and rising investor confidence. He added that although the market is entering 2026 from a position of strength, geopolitical tensions in the wider region could affect investor sentiment and capital flows.
However, he noted that the emirate’s strong sovereign buffers and diversified economy are expected to cushion the market and help maintain confidence and stability. The strength of both off-plan and ready transactions also points to a balanced and sustainable market rather than growth concentrated in a single segment.
Sales and rental prices are likely to continue rising in the near term, though the pace of growth may differ by location as new housing supply enters the market. Based on previous handover patterns, the number of completed units could also fall below initial projections, which may support price momentum and prevent oversupply.
Apartment prices increased by an average of 15.1% in 2025, accelerating from 10.9% growth a year earlier. The sharpest gains were seen on Yas Island, where prices rose 18%, and Al Reem Island with a 17% increase. Villa prices climbed 12.2% on average, with values rising 17% on Yas Island and 13% on Saadiyat Island.
Apartment rents rose 12.5% overall, though increases varied widely by district. Rents jumped 23% on Yas Island and 15% on both Al Reef and Al Reem Island, whilst rents at Al Raha Beach rose by about 10%. Villa rents increased more modestly, averaging 5.5%, with a near 10% rise at Al Reef but only around 1% on Saadiyat Island.
Apartments made up about 66% of total transactions in 2025, reflecting strong developer activity and a pipeline dominated by apartment projects. Around 14,800 apartment deals were recorded, a 58% rise from 2024, including 10,100 off-plan transactions and 4,700 ready-home sales.
Sales of villas and townhouses also strengthened significantly, with volumes rising nearly 50% from the previous year. About 7,600 units were sold, marking a recovery after a slowdown in 2024. Off-plan properties drove most of the growth, rising 63% to 5,800 deals, whilst ready home sales increased 19% to around 1,800 transactions.
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