Abu Dhabi’s residential property market saw substantial growth in Q2 2025 as prices rose due to strong demand from global investors.

Abu Dhabi’s residential property market has maintained a robust growth trajectory in the second quarter of 2025, with average prices seeing a 6.4 percent increase from the previous quarter, reaching AED1,230 per square foot ($335), according to the latest Abu Dhabi Residential Market Review by Knight Frank.

This impressive quarterly rise contributes to a total annual price growth of 17.3 percent in the emirate, representing a staggering 31.3 percent increase since the first quarter of 2020. Apartments have led these gains, rising by 6.8 percent to AED1,296 per square foot ($353), which translates into a notable year-on-year jump of 17.3 percent.

Key Developments in Abu Dhabi Real Estate

The areas of Al Raha Beach and Al Saadiyat Island have been particularly remarkable in terms of apartment price increases, recording rises of 11 percent and 10 percent respectively since the first half of 2024. These prime locations are known for their luxurious beachfront living options and proximity to leisure attractions on Yas Island.

Villas have also shown significant long-term performance, with prices climbing by 3.4 percent quarterly to AED1,103 per square foot ($300) and an astonishing increase of 42.3 percent since Q1 2020. Notably, villa prices surged by 28 percent year-on-year on Al Saadiyat Island and by 22 percent on Yas Island.

In response to supply constraints despite new deliveries totaling up to about AED9 billion ($2.45 billion) in residential transactions for H1 2025-a decrease of 36 percent from H1 last year-over 33,000 homes are currently under construction and anticipated for completion by 2029, with apartments constituting about 62 percent of this new supply.

Yas Island leads these upcoming developments with over eight thousand units planned; meanwhile, approximately three thousand units are expected in Al Shamkha alongside branded residences like Aldar at Mandarin Oriental and Nobu enhancing Saadiyat Island's portfolio.

Knight Frank points out that international buyers continue to exhibit heightened interest drawn by Abu Dhabi's appealing lifestyle amenities combined with its favorable business environment. Private capital directed towards this market is estimated at $1.6 billion -making it UAE’s second preferred destination after Dubai.

The demand among global high-net-worth individuals (HNWIs) keeps escalating-19% plan purchases here within this year compared against last year's figure standing at merely fourteen percentage points; interestingly enough seventy-five percentage share amongst those possessing wealth between $30-$50 million intend investments whilst sixty-five beyond fifty aim similarly so too do they affirmatively favor such moves forward continues Shehzad Jamal acknowledges why indeed there exists apparent potentiality therein where existing exclusions either pricing elsewhere necessitate alternative explorations or moreover desires diversifications specifically pertaining innate portfolios UAE-wise yet whereby evidently Abudhabi stands exceptional value evaluation remains steadfast keeping true amidst intensive requests concurrent limitations evident already household names Akhbrna News discerningly reports ongoing progresses contextually engrossing dialogue surrounds inherently evolving insights realized nationally regionally globally substantially reflecting contours dynamics contemporarily unfolding organically thriving conducive avenues beneficiaries entrepreneurs stakeholders.