Abu Dhabi property market sees Q1 growth as investor demand holds strong

24/04/2025 04:06 AST

Abu Dhabi recorded strong real estate activity in the first quarter of 2025, with continued price growth and investor demand following 28,249 transactions worth 96.2 billion dirhams ($26.2 billion) in 2024.

A new market report by Bayut noted that the momentum from 2024 - marked by a 24.2 percent year-on-year increase in transactions - was driven by capital appreciation, competitive yields, and the emirate's rising profile as a high-return investment destination.

Abu Dhabi's performance mirrors the broader UAE real estate market, which has shown resilience amid global headwinds, supported by population growth, regulatory reforms, and sustained foreign investor interest.

Haider Ali Khan, CEO of Bayut, said: "Abu Dhabi's real estate sector in 2025 continues to build on last year's strong momentum, remaining an attractive destination for global investors."

He added: "The influx of capital from sovereign wealth funds and the growing entrepreneurial landscape are driving renewed interest in the emirate."

Khan, who is also the head of Dubizzle Group MENA and a board member of the Dubai Chamber of Digital Economy, said that with over 30 new projects launched, 7.8 billion dirhams in foreign investment recorded in 2024, and an increased focus on transactions, "Abu Dhabi is establishing itself as a smart, future-ready hub for property investment."

Affordable areas such as Al Reef, Al Ghadeer, Khalifa City, and Al Shamkha remained popular with cost-conscious buyers, while mid-market hubs like Al Reem Island and Masdar City offered value with amenities, the report noted.

High-net-worth buyers focused on Saadiyat Island, Yas Island, and Al Raha Beach. Luxury prices climbed between 2 and 7 percent in the first quarter, with Yas Island leading gains at 6.57 percent. Al Samha posted the highest increase in mid-tier apartment prices at 7.2 percent while affordable segment prices rose up to 2 percent.

Rental yields remained attractive, with Al Ghadeer and Al Reef leading the affordable segment at 9.95 percent and 8.38 percent respectively, while Al Reem Island and Masdar City posted yields between 5.57 and 7.6 percent, the report noted.

Off-plan developments also saw strong demand, with Bloom Living and Al Reeman 1 attracting budget-conscious buyers, while Saadiyat Cultural District and Yas Beach Residences remained popular among luxury investors.

Arab News