Record performance of the real estate market in Abu Dhabi supports sustainable growth until 2030

ABU DHABI, 27th February, 2018 (WAM) – The report of the Abu Dhabi Real Estate Center (ADREC), the body responsible for regulating the real estate sector in the Emirate of Abu Dhabi, confirmed the continued strong performance in the real estate market in the Emirate of Abu Dhabi during the year 2025, recording record levels in the values ​​of real estate transactions driven by the growth of demand, the expansion of foreign investments, and the prosperity of the residential and commercial sales sectors.

The report showed positive indicators that reflect the strength of the sector and the stability of its market structure, with expectations of continued sustainable growth until 2030, in light of an advanced regulatory system and a supportive economic structure that enhances the emirate’s position as a global destination for real estate investment, living and work.

His Excellency Engineer Rashid Al Amira, Director General of the Abu Dhabi Real Estate Center, said that the data received confirms the advanced position of the Emirate of Abu Dhabi as a leading global destination for real estate investment, indicating that the sector’s performance is not limited to achieving high growth rates, but extends to confirming its ability to stabilize, enhance transparency, consolidate governance, and increase the level of trust in the long term.

He added that market indicators show the strength of the foundations of demand versus disciplined and balanced growth in supply, which supports price stability and maintains market attractiveness, and reflects the vitality of the economy and the effectiveness of the regulatory framework that protects investors and supports responsible real estate development activities and practices.

He stressed that the disciplined planning methodology, advanced digital infrastructure, and strengthening institutional governance will remain essential pillars until 2030 to build a more flexible real estate system that consolidates Abu Dhabi’s position as a global destination for living and investing and achieving long-term prosperity and growth.

The total value of real estate transactions during the year 2025 recorded about 142 billion dirhams, a growth of 44% compared to 2024, thus reaching an unprecedented level of activity, while sales transactions accounted for 93 billion dirhams, representing 66% of the total value of transactions, which confirms the strength of the market and the strength of its performance.

Residential unit sales have emerged as a major driver of growth, as their value jumped from about 19 billion dirhams in 2022 to 76 billion dirhams in 2025, quadrupling in three years, driven by an increase in sales of off-plan projects and the expansion of the development of major residential communities.

Residents and foreign investors also accounted for about 62% of total residential unit sales during 2025, which reflects the market’s attractiveness for foreign investments.

At the level of market structure, the top 10 real estate developers accounted for 91% of the total value of sales of residential units on the plan, with a value amounting to 50 billion dirhams, while the 10 largest projects contributed 32% of the total value of sales, equivalent to 24 billion dirhams, indicative of a disciplined development environment that combines operational efficiency and effective regulatory oversight.

The report showed a solid structural strength in the market, driven by the continued positive gap between growth in demand and availability of supply, as the total housing stock reached 401 thousand units during the year 2025, while the number of occupied units grew at an annual rate of 6.6% compared to the growth in supply by 2.8% since 2022, which contributed to the acceleration of the pace of price increases in an orderly manner that reflects a healthy and sustainable dynamic.

Residential apartment prices recorded the highest annual rate of increase, as selling prices rose by 19%, coinciding with a rise in new rental contracts by 16% between 2024 and 2025. Residential villas also witnessed an increase in selling prices by 13%, achieving strong rental returns of 14% in investment areas.

Rented units constituted 71% of the total occupied units, which enhanced the levels of rental returns in various regions of the emirate, while expectations indicate that the housing stock will grow at an annual rate of 2.9% until 2030, supported by the addition of about 43 thousand new units, the majority of which are concentrated in investment areas, with 98% of the new apartments delivered within these areas.

The commercial real estate sectors continued their strong performance during the year 2025, as the total supply in the retail sector reached 3.8 million square meters, while public shops and stores within community commercial centers constituted 44% of the total leasable areas, which contributed to supporting market activity, as the occupancy rate rose to 94%, the highest in five years, driven by demand growth at a pace exceeding the annual supply growth rate of 2.3%, which led to an increase in the prices of new lease contracts by a percentage 8% on an annual basis.

In the office sector, the total supply reached 3.4 million square metres, with an occupancy rate exceeding 96%, with supply growth not exceeding 2% compared to 2024, in conjunction with job growth by 9% and an increase in specialized professional jobs by 6.4%, which contributed to supporting the rise in new office rental prices by 11% during the year 2025, while Yas Island emerged as a major destination for office space, capturing 20% of new supply between 2022 and 2025, reflecting an increasing geographic diversity in Abu Dhabi’s commercial real estate landscape.

The report explained that market values ​​​​recorded historical levels driven by sustainable economic growth in the emirate, and a population increase that reached 7.5% during the year 2024, in addition to the continued flow of foreign direct investments and the growing confidence of foreign investors in the market.

The report confirmed the continued development of the digital system for real estate services, through the provision of virtual transactions and the development of market analysis tools, while enhancing the levels of transparency, governance and regulatory compliance in line with the Abu Dhabi Digital Government Strategy 2025-2027, using advanced analysis tools that ensure the accuracy of data on prices, transactions and geographical distribution, which supports the reliability of indicators and helps in making decisions based on transparent and accurate data.

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