Abu Dhabi – Abu Dhabi Real Estate Center (ADREC), the administrator and regulator of Abu Dhabi’s real estate sector, has launched its latest Real Estate Market Report 2025, providing a comprehensive analysis of the supply and demand dynamics, pricing behavior, investment patterns and future forecasts that define the emirate’s evolving real estate landscape.
This report represents the latest in a bi-annual comprehensive market analysis series that positions Abu Dhabi as a regional leader in data-driven decision-making in real estate.
ADREC’s flagship report serves as the definitive source for transparent real estate insights, featuring sustained economic growth, robust population growth of 7.5% in 2024, and foreign investor confidence driving market values to historic highs.
The report includes detailed demand and supply analysis, trading performance indicators, geographic distribution patterns, and future forecasts up to 2030.
Rashed Al Omaira, Executive Director of ADREC, said: “This report positions Abu Dhabi as a real estate destination of choice globally, with a sector defined not only by growth but also by stability, transparency and long-term trust.” “The data confirms that demand fundamentals remain strong, supply expansion is disciplined, and price movements are occurring in an orderly and sustainable manner. These developments reflect the strength of Abu Dhabi’s economic fundamentals and the effectiveness of a regulatory framework designed to protect investors while enabling responsible development.”
He further added: “As we move towards 2030, continued planning discipline, advanced digital infrastructure and strengthened governance will remain central to creating a resilient real estate ecosystem that supports Abu Dhabi’s position as a world-class destination to live, invest and thrive.”
Transaction performance in 2025 establishes a new benchmark for market activity, with total real estate value reaching AED 142 billion, representing an impressive acceleration of 44% from 2024 levels.
Real estate sales accounted for the majority of market activity, accounting for a record AED 93 billion and 66 per cent of the total transaction value, demonstrating exceptional market health and transaction robustness.
Residential sales emerged as the main growth driver, expanding from around Dh19 billion in 2022 to Dh76 billion in 2025, a four-fold increase due to increased unplanned sales and master-planned community development.
The international attractiveness of this market is demonstrated through foreign investment patterns, with resident expatriates and non-resident foreign investors driving 62 percent of total home sales in 2025. The top 10 developers accounted for 91% of off-plan residential primary sales, amounting to AED 50 billion, and the top 10 projects accounted for 32% of total sales, amounting to AED 24 billion.
Abu Dhabi’s real estate market has established fundamental strength due to sustained demand and supply imbalances across all sectors. The emirate’s housing inventory will reach 401,000 units in 2025, with supply growth of 2.8% from 2022 onwards, while the number of occupied units is growing at 6.6% annually, creating conditions for accelerated price growth.
Apartment prices recorded the steepest annual increase in recent years, with sales prices increasing by 19% and new rental prices increasing by 16% from 2024 to 2025.
Villa performance reflected this strength, with sales prices increasing by 13% and rental yields in the investment zone showing solid growth of 14%. The structural health of the market is evidenced by the number of rental units accounting for 71% of total occupancy, resulting in high rental yields across the emirate.
Future supply forecasts show continued momentum, with housing stock expected to grow by 2.9% per year until 2030, supported by 43,000 new units expected from investment zones, where 98% of new apartments will be delivered.
Abu Dhabi’s commercial sector has shown exceptional performance, with the retail and office markets reaching multi-year occupancy levels due to economic expansion and increased subdued supply. The retail sector will achieve a total supply area of 3.8 million square meters by 2025, with high-street retail and community malls forming the backbone of the market, accounting for 44 percent of the total lettable area.
Overall retail store occupancy surged to 94% in 2025, reaching a five-year peak, supported by demand growth outpacing a 2.3% increase in annual supply, resulting in new rental prices rising 8% year-on-year.
The performance of the office market was equally strong, with the total supply area reaching 3.4 million square meters, and the occupancy rate maintaining structural strength of over 96%. In addition to supply growth of less than 2% compared to 2024, new office lease prices rose 11% in 2025 due to 9% employment growth and 6.4% professional expansion.
Yas Island has emerged as a leading office destination, driving 20% of new supply between 2022 and 2025, highlighting the geographic diversity of the emirate’s commercial landscape.
Technological advancements in ADREC’s digital real estate services include virtual trading capabilities, enhanced analytical tools and expanded market transparency, in line with the Abu Dhabi Government’s Digital Strategy 2025-2027.
Robust data methodologies such as price range validation, deal filtering, and geographic stratification ensure analytical accuracy and support informed decision-making across sectors.
