Abu Dhabi’s real estate market continued its strong performance in the third quarter of 2025, recording record residential sales, rising rents, and a surge in new developments across the Emirate, according to Colliers’ Q3 2025 UAE Real Estate Market Report.
Residential sales jump
Abu Dhabi saw nearly 6,500 residential transactions in Q3 2025, a 175% increase year-on-year and a 233% rise compared to the previous quarter. Off-plan sales dominated the market, with over 4,000 apartments and 885 villas and townhouses sold, while completed property transactions also grew, showing a 32% annual increase.
Apartment prices rose up to 28% year-on-year, and villa prices increased by around 25%, reflecting strong demand from end-users and investors alike.
Rental market strengthens
Rental rates continued to climb across the Emirate. Apartment rents increased 16% annually, with mid- and low-end units seeing gains between 10% and 30%, while villa rents grew 25% year-on-year. High occupancy in Abu Dhabi’s investment zones points to sustained demand, underpinned by the Emirate’s reputation for safety, stability, and quality living.
New developments
The quarter also saw significant project activity, with 1,400 new residential units delivered in Yas Island, Jubail Island, and Al Raha Beach. Major launches included Masdar City by Taraf and Masdar, Four Seasons Private Residences on Saadiyat Island, and Fahid Beach Terraces on Fahid Island.
Abu Dhabi’s local housing authority announced 13 new residential communities, expected to deliver 40,000 homes and plots, including six large communities with over 14,000 units planned across the Abu Dhabi region.
Office sector remains strong
Abu Dhabi’s office market continued to perform well, driven by corporate relocations and limited premium supply. Al Maryah Island maintained near-full occupancy, with fitted Category A rents exceeding Dhs 3,000 per square metre, while micro-offices attracted strong demand with rents surpassing Dhs 4,500 per square metre. Pre-leasing activity for upcoming office completions remains high.
tanvir@dubainewsweek.com
