Abu Dhabi’s residential property market recorded its strongest performance to date in 2025, driven by higher transaction volumes, rising prices and sustained demand across both mainstream and high-end segments, according to Savills Middle East.
Data from the Abu Dhabi Residential Market Report 2025 shows that more than 20,000 residential transactions were completed during the year, marking a 58% increase compared to 2024 and the highest annual level ever recorded in the emirate.
Transaction activity rises
Market activity gained pace as the year progressed, with the final quarter setting a new quarterly record of over 7,500 transactions. Apartments continued to account for the majority of deals, representing 67% of total transactions in 2025.
Demand for villas and townhouses strengthened towards the end of the year, with close to 3,500 transactions recorded in the fourth quarter alone. This shift reflected growing interest in low-density, family-focused housing.
Off-plan sales lead
Off-plan properties remained the main driver of the market, making up 70% of all residential transactions in 2025. Their share increased to 80% in the final quarter, supported by several new project launches, including branded residences and large master-planned communities.
Savills noted that limited availability of completed stock and attractive payment plans continued to support off-plan demand.
Prices continue upward
Average residential sale prices rose by 15% year on year to Dhs 17,145 per square metre, with growth recorded across all major areas of the city.
The prime and super-prime segment also expanded, with nearly 700 transactions above Dhs 10 million completed during the year. This represented a 47% annual increase, largely driven by branded developments and premium villa communities.
Villas and townhouses accounted for around 70% of transactions above the Dhs 10 million mark, highlighting sustained demand for space and privacy among high-net-worth buyers.
Prime areas expand
High-end activity was concentrated in locations such as Saadiyat Island, Yas Island and Masnouah Island, where several new branded residential projects were launched during the year.
Ali Ishaq, Head of Residential Agency – Abu Dhabi at Savills Middle East, said: “Abu Dhabi’s residential market performance in 2025 reflects a broader evolution in how the city is positioning itself globally. Demand is increasingly being shaped by the depth of Abu Dhabi’s cultural offering on Saadiyat Island, alongside the growth of key commercial and lifestyle hubs such as Yas Island, as well as the ADGM International Financial Centre on Al Maryah Island and Reem Island.
“This combination of culture, economic infrastructure and high-quality residential development is attracting a more diverse mix of end-users and international investors seeking long-term stability rather than short-term opportunity. As a result, we are seeing sustained momentum across both prime and mainstream segments of the market.”
Rachael Kennerley, Director of Research at Savills Middle East, added: “2025 has seen strong performance for Abu Dhabi’s residential market, mirroring the city’s ongoing evolution. Entertainment and education announcements are increasingly making Abu Dhabi an attractive proposition for family living on a global level, alongside an evolving product mix from developers bringing large-scale villa communities, branded residences, and high-quality apartment stock”
Outlook for 2026
Looking ahead, Savills expects Abu Dhabi’s residential sector to remain supported by supply constraints, limited near-term project handovers, and continued population and economic growth.
The consultancy said ongoing investment in cultural, leisure and education infrastructure, along with regulatory measures aimed at improving transparency, should help maintain confidence, with well-located and high-quality developments expected to show greater resilience as the market matures.
tanvir@dubainewsweek.com
