Abu Dhabi’s branded and luxury residences sector is experiencing record growth, with the number of branded residence launches quadrupling compared to the same period last year, according to Metropolitan Capital Real Estate (MCRE).
High-value transactions increase
In the first four months of 2025, transactions involving properties valued at Dhs 7 million and above reached Dhs 6.3 billion — a 5% year-on-year increase.
Over half of these deals were in the Dhs 10 million and above range, showing rising interest from high-net-worth individuals (HNWIs), international investors, and long-term residents.
“Abu Dhabi has firmly positioned itself as a premier destination for luxury and lifestyle-led investments,” said Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate.
“We have witnessed investors initially seeking to purchase a single property, ultimately expanding their portfolios due to a strong belief in the market’s potential. We are also seeing an increase in the number of long-term residents who are opting to purchase properties in Abu Dhabi instead of renting, reflecting the growing confidence in the city’s real estate market.”
Branded launches on the rise
At least 25 branded residences are expected to launch this year, a sharp increase from just a few in 2024. Key areas include Saadiyat Island, Al Reem Island, and Mariah Island. New developments include Jacob & Co Beachfront Residences, Brabus Residences by Cosmo, and Nobu Residences, which set a record with a Dhs 137 million penthouse sale — the highest in Abu Dhabi to date.
Secondary luxury market growth
The resale market for high-end properties has also shown strong performance in 2025, with a 158% rise in transaction volume compared to last year. Nearly Dhs 3 billion in resale activity was recorded by April, with Dhs 2.6 billion from super-luxury homes priced above Dhs 10 million.
These super-luxury deals have already reached 22% of all transactions recorded in 2024, signalling stronger investor interest in ready-to-move-in, upscale properties.
MCRE handled over Dhs 700 million in luxury transactions so far this year, including Dhs 530 million in the ultra-luxury segment, giving it an 11.5% share in the Dhs 7 million+ market. The company has opened a dedicated luxury division — Metropolitan Capital Elite — located on Saadiyat Island to serve HNWIs and institutional buyers.
The market also saw a shift in investor demographics. While Russian and CIS interest declined in Q2, demand from UK and US nationals, Emiratis, and other GCC citizens rose. MCRE noted that many buyers are end users, while others are diversifying portfolios to benefit from Abu Dhabi’s relatively competitive property prices — currently averaging between Dhs 2,500 to Dhs 4,000 per sq. m. in branded projects.
Key luxury hotspots
Saadiyat Island, Yas Island, Al Reem Island, and the fast-developing Al Hidayriyyat area continue to lead high-end residential activity. Al Hidayriyyat alone has already surpassed 20% of its total sales from last year, showing rapid progress in its market positioning.
tanvir@dubainewsweek.com
