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Abu Dhabi’s luxury and branded real estate market is witnessing unprecedented growth in 2025, with branded residence launches quadrupling compared to the previous year, according to Metropolitan Capital Real Estate (MCRE), a real estate agency in Abu Dhabi.
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The surge is being driven by increasing demand from high-net-worth individuals (HNWIs), international investors, and long-term residents. The market has already recorded Dhs6.3bn in luxury property transactions—valued at Dhs7m and above—within the first four months of the year, representing a 5 per cent year-on-year increase. Over half of these transactions were in the Dhs10m-plus segment, underscoring rising investor confidence in Abu Dhabi’s premium real estate offerings.
“Abu Dhabi has firmly positioned itself as a premier destination for luxury and lifestyle-led investments,” said Evgeny Ratskevich, CEO of MCRE. “We’ve seen buyers who initially intended to purchase a single property expanding their portfolios. At the same time, long-term residents are increasingly choosing to buy rather than rent, reflecting growing confidence in the local market.”
Rise of branded residences
One of the strongest growth drivers in 2025 has been the rise of branded residences. Developers are actively launching lifestyle-focused communities across key areas including Saadiyat Island, Al Reem Island, and Mariah Island. The number of branded projects is expected to exceed 25 this year, a significant jump from just a handful launched in 2024.
Notable developments include Jacob & Co Beachfront Residences, Brabus Residences by Cosmo, Waldorf Astoria Residences, Elie Saab Waterfront, SHA Wellness Residences, Mandarin Oriental Residences, and Nobu Residences. The latter recently set a new benchmark with a record-breaking Dhs137m penthouse sale—the highest residential transaction in Abu Dhabi’s history.
In parallel, the secondary luxury market has also seen explosive growth. Transaction volume in this segment increased 158 per cent year-on-year, with nearly Dhs3bn in resale activity by April. Super-luxury properties (priced above Dhs10m) accounted for more than Dhs2.6bn, making up 60 per cent of total secondary market sales.
Super-luxury resale market
In just four months, transactions in the super-luxury resale market have reached 22 per cent of the full-year total for 2024, highlighting growing investor interest in ready-to-move-in, high-end properties.
MCRE has cemented its position as a market leader in Abu Dhabi’s luxury sector, securing an 11.5 per cent share of the market for properties priced at Dhs7m and above. The firm facilitated over Dhs700m in sales in this category, including Dhs530m in the ultra-luxury bracket (Dhs10m and up), capturing 11 per cent of that niche segment.
According to Ratskevich, branded residence prices now average Dhs2,500 to Dhs4,000 per square meter, depending on location. This is significantly lower than comparable offerings in Dubai or Ras Al Khaimah, making Abu Dhabi increasingly attractive to international investors.
Shift in investor demographics
Investor demographics have also shifted notably since 2024. While Russian and CIS buyers were dominant early last year, interest from those regions declined in Q2. In their place, buyers from the UK, US, UAE, and other GCC countries are stepping up. Nearly half of all purchasers are end-users, with the remainder being investors looking to capitalize on what they view as bargain prices for high-end properties.
Key locations continue to drive market activity, with Saadiyat Island, Yas Island, Reem Island, and Al Hidayriyyat leading the charge. Al Hidayriyyat, in particular, has already surpassed 20 per cent of its total 2024 sales volume, positioning it as a fast-growing hotspot.
To meet rising demand, MCRE has launched a dedicated luxury office—Metropolitan Capital Elite—on Saadiyat Island. The new division will cater exclusively to HNWIs, end-users, and institutional investors seeking access to premium and branded assets, offering tailored advisory services.
