Abu Dhabi’s residential property market continued its robust growth in Q2 2025, with average prices rising 6.4 per cent quarter-on-quarter to AED1,230 per sq ft ($335), according to Knight Frank’s latest Abu Dhabi Residential Market Review.
This brings the total annual price growth in the emirate to 17.3 per cent, marking a 31.3 per cent increase since Q1 2020.
Apartments led the quarterly gains, climbing 6.8 per cent to AED 1,296 per sq ft ($353), reflecting a 17.3 per cent year-on-year rise.
Abu Dhabi real estate prices
Al Raha Beach and Al Saadiyat Island were standout locations for apartment price growth, up 11 per cent and 10 per cent respectively since H1 2024.
Both areas offer prime beachfront living, with Al Raha Beach benefiting from its proximity to Yas Island’s leisure attractions.
Villas outperformed over the long term, posting a 3.4 per cent quarterly increase to AED 1,103 per sq ft ($300), with prices up 42.3 per cent since Q1 2020.
Villas on Al Saadiyat Island recorded a 28 per cent year-on-year jump, followed by Yas Island with a 22 per cent rise. Villas represent 37.4 per cent of Abu Dhabi’s supply pipeline, where demand remains strong due to limited new villa developments and competitive pricing compared to Dubai.
Residential transactions reached AED9bn ($2.45bn) in H1 2025, down 36 per cent from H1 2024, reflecting supply constraints despite the delivery of 890 new units.
However, more than 33,000 homes are under construction and expected by 2029, with apartments comprising 62 per cent of this future supply.
Yas Island leads new developments with more than 8,000 units, followed by Al Shamkha with around 3,000 units. Branded residences by Aldar at Mandarin Oriental and Nobu also bolster Saadiyat Island’s pipeline.
Knight Frank highlights growing interest from international buyers attracted by Abu Dhabi’s lifestyle amenities and business environment. Private capital targeting Abu Dhabi’s residential market is estimated at $1.6bn, making it the UAE’s second most popular destination after Dubai.
Demand from global high-net-worth individuals (HNWIs) continues to rise, with 19 per cent intending to purchase property in Abu Dhabi in 2025, up from 14 per cent last year.
Particularly strong interest comes from those with wealth between $30m and $50m, where 75 per cent plan to buy, and 65 per cent of those above $50m express similar intentions.
Shehzad Jamal, Partner – Strategy and Consulting, MENA, said: “Some 63 per cent of global high-net-worth individuals interested in buying in Abu Dhabi are doing so for personal reasons; they intend to use the property as their main residence, or holiday home, or for retirement.
“The remaining 37 per cent are investment-driven. For buyers who may have been priced out of Dubai, or who want to diversify their UAE portfolio, Abu Dhabi is increasingly attractive, with average residential prices growing by around 17 percent year-on-year.”
With average residential prices approximately 30 per cent lower than Dubai, Abu Dhabi’s market offers attractive value for investors and homebuyers amid continued strong demand and limited supply.
