Demand stays strong for ready properties, pushing prices up 13.4% year-on-year
Last updated: May 28, 2025 | 15:49
Abu Dhabi Central, one of the most lively areas of the city and close to a number of hotspots.
Dubai: Abu Dhabi’s residential property market is holding firm in 2025, even as fewer new projects hit the market, according to the latest Residential Market in Minutes report from Savills.
The slowdown in new supply has created a demand crunch—particularly for ready-to-move-in homes—pushing up sale prices and reinforcing the capital’s appeal among investors and end-users alike.
Despite a 39% drop in transaction volumes in Q1 compared to a year ago, the emirate’s housing market continues to show resilience.
With fewer than 3,000 new homes delivered this quarter and just 10 new projects launched, buyers are competing over limited stock. This is reflected in the rising sales prices, which jumped 13.4% year-on-year—from Dh14,100 to Dh16,200 per square metre.
Magnet for long-term investment
Several factors are reinforcing Abu Dhabi’s status as a sought-after place to live and invest. The city has once again been named the world’s safest for the ninth year in a row.
In addition, strategic investments in culture, education, and lifestyle infrastructure—including the development of the Saadiyat Cultural District and the upcoming Harrow International School—are attracting residents and institutional investors alike.
“Demand is clearly present, particularly within well-connected and master-planned communities,” said Ali Ishaq, Head of Residential Agency at Savills Middle East. “The shortage of new launches has channelled activity towards the ready market, and we are seeing this reflected in both transaction share and rising capital values.”
Focus on premium ready units
Notably, transactions in ready homes made up 68% of all residential sales in Q1 2025, up from just 44% a year ago. In villa communities, prices climbed steadily—by 7% in Al Reef, 10% on Yas Island, and 26% on Saadiyat Island, pointing to a strong appetite for upscale, lifestyle-focused neighbourhoods.
In the apartment segment, Saadiyat Island led again with a 22% rise in values, while other established hubs such as Al Raha Beach, Reem Island, and Yas Island remained stable. Apartment transactions made up 63% of Q1 activity, with most of them involving completed units.
Expat interest still significant
Beyond numbers, expat families continue to show interest in the capital, helped by long-term visa reforms, expansion in the private education sector, and lifestyle enhancements like the upcoming Disney theme park on Yas Island. The entry of international developers into Abu Dhabi is also expected to lift future demand and broaden investor participation.
Savills expects the ready home market to remain active in the coming quarters, especially within well-established communities. Investors and homebuyers looking at the UAE property sector may find Abu Dhabi’s relatively low supply and high demand dynamics especially attractive, offering strong capital growth potential in the medium term.
