Abu Dhabi’s residential real estate market is experiencing strong demand in early 2025, driven by limited housing supply, growing investor interest, and key infrastructure projects, according to Oia Properties, a local brokerage firm.
Market stability and investment
Despite global economic uncertainty, the UAE real estate market remains stable. Oia Properties attributes this to growing foreign investor confidence, digital banking innovations, and residency initiatives like the Golden Visa.
The agency also points to increasing demand for developments by well-known developers, especially those involved in branded partnerships and hospitality collaborations.
Notable projects include partnerships such as Elie Saab Residences on Reem Island, ORA’s Bayn at Ghantoot, and Brabus Island. Meanwhile, branded developments with St. Regis, Mandarin Oriental, and W Hotels continue to raise the capital’s profile among investors.
Top-performing areas in Abu Dhabi
Oia Properties has identified five key residential areas showing strong performance and potential for continued growth.
Yas Island
Described by Oia as “a world-class tourism and leisure hub,” Yas Island has attracted more attention following the announcement of Disneyland Abu Dhabi. Existing attractions like Ferrari World and Yas Marina Circuit make it a popular destination for short-term rentals.
Average price: Dhs 1,500–2,100 per sqft
Starting price: Dhs 800,000
Capital appreciation outlook: 9/10
Al Reem Island
With Abu Dhabi Global Market expanding its jurisdiction to Al Reem Island, the area is now open to investors of all nationalities. Oia said it combines “urban living and preserved natural landscapes,” with strong rental yields and no municipal restrictions.
Average price: Dhs 1,400–2,000 per sqft
Starting price: Dhs 700,000
Capital appreciation outlook: 8/10
Al Hudayriyat Island
This new Modon community is gaining interest due to projects like Surf Abu Dhabi and the Velodrome. Oia expects prices to rise, citing increasing off-plan demand and a focus on lifestyle.
Average price: Dhs 1,400–2,100 per sqft
Starting price: Dhs 2 million
Capital appreciation outlook: 8/10
Al Raha Beach
An established waterfront community, Al Raha Beach continues to perform well in both the secondary and off-plan markets.
Average price: Dhs 1,260–1,490 per sqft
Starting price: Dhs 1 million
Capital appreciation outlook: 7/10
Saadiyat Island
Known for its blend of culture and luxury, Saadiyat remains a favourite with international investors. “The Louvre Abu Dhabi continues to be a decisive factor for many clients,” Oia said.
Average price: Dhs 1,800–3,400 per sqft
Starting price: Dhs 1.3 million
Capital appreciation outlook: 7/10
Emerging areas to watch
Several up-and-coming locations are drawing increased interest:
Ghantoot: With beachfront homes in Bayn by ORA, starting from Dhs 2.7 million
Al Reef: Transitioning to freehold, with studios from Dhs 500,000–600,000
Masdar City: Sustainable hub with units from Dhs 1 million
Al Shamkha: Spacious villas in Fay Al Reeman, starting at Dhs 400,000
Zayed City: New developments like Cordoba in Bloom Living Phase 1, starting from Dhs 600,000
Oia Properties said the market outlook remains positive, supported by steady infrastructure growth and continued demand for lifestyle-driven, well-located communities.
tanvir@dubainewsweek.com
