With only a limited new project launches crunching the supply in Abu Dhabi, a new report on the capital’s real estate has highlighted that residential sales values in the first six months of 2025 for all ready and off-plan properties fell 33 per cent in value and 37 per cent in volume.
However, the Abu Dhabi residential market performance report, published by Cavendish Maxwell, a leading real estate advisory and property consultant, added that sales volumes for ready villas and townhouses in Abu Dhabi have risen 72 per cent year-on-year to reach their highest levels since 2021.
Abu Dhabi residential sales values for all ready and off-plan properties totalled AED 8.9 billion (US$2.42 billion) across 3,300 transactions in H1 2025, compared to AED 12.5 billion (US$3.4 billion) and nearly 4,500 transactions in the same period in 2024.
The reductions are the result of limited new project launches, which in turn have redirected investors to ready homes, the company said.
Andrew Laver, Associate Director, Cavendish Maxwell Abu Dhabi, commented: “Abu Dhabi’s overall residential real estate sales activity has moderated compared to a year ago, but demand for completed projects remains robust, as highlighted by our latest research. This sustained demand continues to drive up prices across apartments and villas, underscoring a healthy appetite among end-users and investors.
“While H1 has seen a limited number of new launches, several large-scale, off-plan developments from key developers like Aldar and Modon, coupled with new projects from smaller private developers, are expected to come to the market during the remainder of 2025. This should reinvigorate supply and stimulate broader market engagement.
“These market dynamics set a strong foundation for the second half of the year, with promising prospects across the off-plan and completed property segments. Abu Dhabi’s real estate sector continues to show depth and adaptability, and is well-positioned for sustained growth.”
Some 700 ready villas and townhouses were bought between January and June this year, with end-users seeking larger, family-oriented homes and investors drawn to attractive rental yields and potential long-term capital appreciation.
Among other highlights in the report…
- 2,400 new units were completed. Another 10,400 properties are under construction
- Year-on-year, apartment prices were up 14 per cent and villas by 11.1 per cent
- Average transaction values for ready homes hit AED 2.5 million (US$680,000); up from AED 2.1 million (US$570,000) YoY
- Apartments continued to dominate sales activity, with a 73 per cent market share – a slight decline from 76 per cent last year
- Mortgage values rose 12 per cent YoY, reaching AED 3.5 billion (US$950 million) across 1,700 loans, with villas and townhouses contributing AED 2.5 billion (US$680 million)
- Average rental rates increased by 14 per cent compared to H1 2024 and 6.7 per cent against H2 2024.
Average sales prices for apartments rose 14 per cent, with buyers increasingly focusing on high-quality, well-located units. The biggest annual price increases were seen at Al Reem Island (almost 17 per cent) and Yas Island (15.6 per cent), closely followed by Al Raha Berach (14.6 per cent) and Al Reef (13.9 per cent). Villa sales prices also rose, with prices in Yas Island up by more than 14 per cent. Saadiyat Island (up 11.1 per cent), and Al Reef (7.2 per cent) were other big movers.
Rental rates were up nearly 27 per cent at Yas Island, 21 per cent at Al Reem Island and 16 per cent at Al Reef.
