Abu Dhabi Property Market Sees Strong Growth in H1 2025
The Abu Dhabi property market has showcased robust performance in the first half of 2025, driven by a surge in buyer activity, rising listing prices, and healthy rental yields across all market segments. According to data from Bayut, the emirate remains one of the region’s most attractive destinations for investors and end-users alike.
Affordable Segment: High Demand and Attractive Yields
In the affordable housing segment, apartment prices rose by up to 7%, while villa prices increased by as much as 5%. Key areas such as Khalifa City, Al Shamkha, and Al Reef attracted budget-conscious buyers, with Al Reef apartments delivering exceptional rental yields of 9.33%.
Affordable off-plan apartments in Bloom Living (Zayed City) and Al Reeman 1 (Al Shamkha) saw high investor interest. Affordable villa buyers favoured Bloom Living and Al Reeman 2, while Al Reef villas offered solid rental returns of 6.34%.
Mid-Tier Segment: Rising Prices and Steady Demand
Mid-range apartment prices increased by 6% to 11%, with Masdar City and Al Reem Island seeing strong buyer demand. Villas in Al Samha surged by up to 26.7%, while Al Raha Gardens saw a modest rise of 2.68%. Al Raha Gardens and Al Muroor remained popular for mid-tier villa rentals, offering yields of 6.17% and 5.75% respectively.
Mid-range off-plan projects like Yas Bay and Yas Acres remained a top choice for both local and international investors.
Luxury Segment: A Mixed Trend Influenced by Major Announcements
Luxury apartment prices on Yas Island and Saadiyat Island increased by up to 17%, partially driven by the announcement of Disneyland Abu Dhabi. Villas in Saadiyat Lagoons and Nawayef West (Hudayriat Island) attracted premium buyers, while Yas Island villas offered rental returns of 5.46%.
However, Al Jubail Island saw a notable decline of 17.8% in villa prices due to shifting investor preferences toward island communities.
Rental Market Performance
Affordable apartment rents rose between 2% and 21%, with 2-bedroom units in Al Nahyan recording the highest gains. Mid-range apartment rents increased by up to 68%, especially for studio units in Tourist Club Area. Luxury apartments across Yas Island and Al Raha Beach continued to yield upwards of 6.5% annually.
Villa rentals showed mixed results: affordable villas rose by up to 13%, mid-tier by up to 7%, and luxury villas fluctuated based on location and configuration. Notably, 5-bedroom units in Yas Island and Saadiyat Island saw a 6% price drop.
Investor Confidence and Outlook
Bayut and Dubizzle CEO Haider Ali Khan commented: “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.”
Initiatives like ADREC’s Madhmoun program have improved market transparency and investor confidence, positioning Abu Dhabi as a future-ready investment hub in the region.
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