The Abu Dhabi real estate market has registered constant growth in the first quarter of 2025, according to a new report.
According to the latest Dubizzle report, both the rental and sales segments throughout the Emirate have experienced price increases, which reflects a strong demand and confidence of investors.
“It continues to be a constant growth period for the real estate sector of Abu Dhabi with a significant progression in the infrastructure, development and sustainability efforts. In Dubizzle, we are immune proud to be part of this growth. The solutions that meet the evolutionary needs of our users and partners,” said Haider, CEO of Dubizzle and Dubizzle Group Mena.
The Yas Island Tops Abu Dhabi real estate market in the first quarter of 2025
Yas Island has become the best location for luxury apartments with an average sale price of AED 1.87 million. The area saw a 2.54 percent increase in prices per square foot compared to the fourth quarter of 2024.
For luxury apartment rentals, Raha Beach led the market with an average annual income of AED143,000.
In the luxury Villa segment, Yas Island maintained its position as the best option for buyers and tenants.
The average sale price for villas in this area reached AED4.68 million, while rental prices averaged AED229000 annually, which represents an incentive of 1.33 percent of the previous quarter.
Saadiyat Island delivered the biggest return on investment for luxury villas with 5.60 percent, while Yas Island offered the best yields for luxury apartments with 6.99 percent.
ABU Dhabi Asequible Housing Market: Main Buyers, Interest rates in 2025
The Recent Island continued to be the upper area for affordable apartments with an average sale price of 1.54 million AED and an impressive ROI or 7.31 percent. The area recorded an increase of 3.57 percent in square feet prices from the fourth quarter of 2024.
For affordable apartment rentals, the city of Khalifa led the market with an average annual income of AED44,000.
The Reef dominated the affordable Villas sales market with an average price of 2.21 million AED and a ROI or 6.23 percent.
For villa rentals in the affordable segment, Mohammed Bin Zayed City emerged as the preferred option with an average annual income of AED 153000.
Al Reef achieved the highest ROI in the affordable segment, with 6.23% villas and apartments at 10.08 percent.
The best projects outside the Abu Dhabi plan revealed in the first quarter of 2025
The report also highlighted a significant interest in the properties outside the plan in Abu Dhabi.
For luxury apartments outside the plan, Yas Bay, the Saadiyat Cultural District and the Maryah Vista 2 emerged as the most wanted projects with average prices of AED2.02 million, AED4.45 million and AED1.11 million respectively.
In the apartment segment outside the plan, replace, Royal Park and Reeman 1, German 1, attracted the greatest interest, with average prices of AED1.65 million, AED934,000 and AED793000.
For the luxury villages out of plan, Yas Acres, Saadiyat Lagunas and the Gardens Legal led the market with average prices of Aed6.52 million, AED8.98 million and AED5.56 million rule.
Al Reeman 2, Bloom Living and Naseem Community emerged as the main options for affordable villages outside the plan, with average Aed4.1 million prices, AED3.92 million and AED8.89 million, respective.
Why do the areas of Abu Dhabi offer the greatest returns in 2025?
The report indicates that the Abu Dhabi real estate market has maintained its impulse from the late 2024 to the beginning of 2025, and most areas show price increases.
Notable exceptions include the Jubail Island and the sports port, which the experiential decreases in prices per square foot for apartments by 1.74 percent and 1.20 percent respectively.
In the Villa rental market, Shakhbout City and Reef saw decreases or 4.17 percent and 2.90 percent in annual rentals.
The general feeling of the market remains positive, and investors show a continuous interest in established communities and new developments throughout the Emirate.
