A new report has revealed the latest trends in the greater Abu Dhabi real estate market. The upward momentum previously seen continued into Q1 2025. This growth covers the rental and sales sectors across the emirate, reflecting a consistent level of demand and investor confidence.
The Luxury Property Market Leaders
Yas Island is gaining prominence for fine-property type. As far as apartments are concerned, Yas Island had an average price of 1.87 million AED. In fact, per-square-foot costs in this area went up 2.54 percent from the fourth quarter of 2024. Luxury apartment rentals averaged AED 143,000, with Al Raha Beach recording the highest annual average rent. The same trend was also observed within the luxury villa market, with Yas Island once again taking the number one spot in popularity amongst buyers and tenants. The average sold prices for villas on Yas Island each sold for AED 4.68m, with average rentals coming to AED 229,000 per year (a 1.33 percent increase on last quarter). Luxury villas on Saadiyat Island achieved the highest ROI at 5.60 percent, while the top performing Luxury Apartments were on Yas Island at 6.99%,’ reported the specialist.
Market Trends in Affordable Housing
With an average sales price of AED 1.54 million and a strong yield of 7.31 percent, Al Reem Island remained the top area for buying an affordable apartment. During the last quarter of 2024, Al Reem Island experienced a quarter-on-quarter increase in per-square-foot prices of 3.57.
According to the study, Khalifa City saw the highest level of demand for affordable apartment rentals, with an average annual rent of AED 44,000. High-performance affordable villa sales in terms of an average price of AED 2.21 million and ROI of 6.23 percent were achieved by AL REEF. Mohammed Bin Zayed City emerged as the most preferred area for villa rental, with an average annual rent of AED 153,000, marking it as the cheapest among popular regions. In this budget segment, the best value for money was offered in Al Reef, where villas returned 6.23 percent and apartments 10.08 percent.
Off-Plan Property Interest
The report also indicated “higher interest in off-plan properties in Abu Dhabi. Yas Bay, Saadiyat Cultural District, and Al Maryah Vista 2 were the most popular in the luxury off-plan apartment segment, with an average value of AED2. 02 million, AED4. 45 million and AED1. 11 million respectively.”
For lower-priced off-plan apartments, the best-performing projects were Reem Hills (AED 1.65m), Royal Park (AED 934,000) , and Al Reeman 1 (AED 793,000). Average prices for off-plan luxury villas during the second quarter were AED 6.52 million for Yas Acres, AED 8.98 million for Saadiyat Lagoons, and AED 5.56 million for Al Jurf Gardens. Areas where the cheapest off-plan villas were sold include Al Reeman 2, Bloom Living, and Al Naseem Community, which sold for an average of AED 4,1 million, AED 3,92 million, and AED 8,89 million, respectively.
Investment Returns by Region
The price appreciation that shows the strength of many portions of the Abu Dhabi Property Market after the upswing of late 2024 persists in the first few months of 2025. On the other hand, Al Jubail Island and The Marina witnessed slight declines of 1.74 percent and 1.20 percent, respectively, in per-square-foot prices for apartments. In the villa rental market, annual rents dropped by 4.17 percent in Shakhbout City and 2.90 percent in Al Reef. According to Property Finder, the overall sentiment remains positive across the emirate, with strong demand throughout both established and emerging districts.
