Listing prices for apartments in the affordable sector have risen by up to 7%, Bayut data shows
Published: Fri 18 Jul 2025
Abu Dhabi has established itself as one of the region’s most attractive investment destinations.. Photo: File photo
The Abu Dhabi property market has demonstrated exceptional resilience and growth in H1 2025, as listing prices for apartments in the affordable sector have risen by up to 7 per cent, while budget-friendly villa prices have increased by as much as 5 per cent, data showed on Wednesday.
According to research by Bayut, the UAE’s leading property portal, the emirate has established itself as one of the region’s most attractive investment destinations. Budget-conscious property-seekers have focused on affordable areas such as Al Reef, Al Ghadeer, Khalifa City and Al Shamkha. Mid-tier investors have favoured Al Reem Island, Masdar City, Al Raha Gardens and Al Samha. Abu Dhabi’s popular island communities, Yas Island and Saadiyat Island, have remained of significant interest to potential high-profile investors.
The mid-tier segment has seen apartment prices appreciate by 6 per cent to 11 per cent. Mid-tier villas reported a listing price increase of up to 2.68 per cent in Al Raha Gardens and a surge of up to 26.7 per cent in Al Samha, highlighting a sustained demand for family homes. Bucking the trend slightly, mid-tier villas in Baniyas have become cheaper by 1.45 per cent.
According to the H1 2025 luxury property sales data, listing prices for luxury apartments in Yas Island and Saadiyat Island have increased by up to 17 per cent, an unsurprising surge when the announcement of Disneyland Abu Dhabi is taken into account. The luxury villa segment has experienced comparatively moderate increases of 5 per cent to 10 per cent. Villa prices in Al Jubail Island have recorded a significant 17.8 per cent decrease, most likely due to investor interest shifting towards Yas Island and Saadiyat Island.
Rental yields
In the affordable segment, Al Reef apartments have delivered lucrative yields of 9.33 per cent, followed by Al Ghadeer at 8.45 per cent. Mid-tier apartments have offered promising returns of 8.41 per cent in Masdar City and 7.59 per cent in Al Reem Island. For luxury apartments, Yas Island has recorded yields of 7.15 per cent, while Al Raha Beach has offered 6.58 per cent.
Affordable villas in Al Reef have provided solid returns of 6.34 per cent. Mid-tier villas have yielded 6.17 per cent in Al Raha Gardens and 5.75 per cent in Al Samha, while premium villas in Yas Island have offered investors a 5.46 per cent return.
Abu Dhabi’s diverse off-plan market has continued to attract significant interest from both local and international investors.
For affordable off-plan apartments, Al Reeman 1 in Al Shamkha and Bloom Living in Zayed City have garnered significant investor interest. Those looking for off-plan apartments in the mid-tier range have focused their interest on Yas Bay, whereas Nawayef Park Views on Hudayriat Island has emerged as the preferred choice in the luxury category.
Investors eyeing villa purchases have favoured Bloom Living in Zayed City, Al Reeman 2 in Al Shamkha and Reportage Village Abu Dhabi in Khalifa City for affordable options. Off-plan villa buyers have shown a preference for Yas Acres and Al Jurf Gardens in the mid-tier segment. Nawayef West in Hudairiyat Island and Saadiyat Lagoons have garnered the most investor interest in the luxury category.
Abu Dhabi’s rental market strength has been driven by population growth and consistent demand for quality accommodation from expats:
For affordable rentals, Khalifa City and Al Shamkha have remained popular for both apartments and villas, with tenants also considering Shakhbout City for family homes. In the mid-tier segment, tenants have favoured Al Reem Island and Al Khalidiyah for apartments, while Al Raha Gardens and Al Muroor have been popular choices for villas. Yas Island and Saadiyat Island have remained the top luxury picks for both apartments and villas.
Rents for affordable apartments have increased between 2 per cent and 21 per cent, with the highest rental rises observed for 2-bedroom units in Al Nahyan, signifying growing demand for larger, budget-friendly units. Mid-range apartment rentals have mirrored this trend, with increases ranging from 3 per cent to 68 per cent; studio units in the Tourist Club Area have reported the highest surge following an increased demand for limited inventory.
Asking rents for luxury apartments have reported moderate to major increases of 3 per cent to 14 per cent across popular districts. However, 2 and 3-bedroom units in Saadiyat Island have experienced marginal price reductions of 0.47 per cent and 2 per cent, respectively.
In the affordable category, villa rentals have risen by up to 13 per cent in prominent districts. Asking rents for mid-tier villas have generally risen by up to 7 per cent. Luxury villa rentals have reported a mixed trend with up to 7 per cent price increases for 4-bedroom units in Saadiyat Island and Al Bateen, but a somewhat surprising 6 per cent decrease for 5-bedroom units in Saadiyat Island and Yas Island.
Haider Ali Khan, CEO of Bayut, CEO of Dubizzle Group MENA and Board Member of the Dubai Chamber of Digital Economy, said: “Abu Dhabi’s real estate market has been on a steady upward path this year, and the interest we’re seeing speaks for itself with over 9.3 million visits recorded on Bayut’s Abu Dhabi listings in just six months. With strong demand and smart initiatives such as ADREC’s Madhmoun boosting transparency, the capital is shaping up to be a really exciting space for both homebuyers and investors. All signs point to Abu Dhabi emerging as one of the most exciting and future-ready real estate destinations in the region.”
