Abu Dhabi property deals jump 42% to $14.7bn in first half amid population growth

Demand outpaces supply, boosting prices of villas and apartments

Abu Dhabi’s population crossed four million for the first time in 2024. Victor Besa / The National

Abu Dhabi property deals in the first half of 2025 surged by 42 per cent on an annual basis as demand remained strong amid a population increase and robust economic growth.

The total value of deals over the six months to the end of June reached Dh54 billion ($14.7 billion), driven by residential unit sales that rose by 38 per cent to Dh25 billion, according to the latest report from Abu Dhabi Real Estate Centre. The volume of property transactions jumped 25 per cent to 15,578.

“Abu Dhabi’s real estate market continues to demonstrate its strength, setting new records in both sales value and volume,” said Rashed Al Omaira, acting director general of Adrec.

“The combination of economic growth, international investor confidence, and the delivery of high-quality, master-planned communities is reinforcing the emirate’s position as a premier destination for investment and living.”

Abu Dhabi's economy expanded by 3.8 per cent annually in 2024 to reach a record value of Dh1.2 trillion, state news agency Wam reported in May.

The emirate's non-oil sector during the 12-month period grew 6.2 per cent to Dh644.3 billion, making its highest annual contribution to the gross domestic product at 54.7 per cent, Wam said, quoting data from the Statistics Centre – Abu Dhabi.

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Meanwhile, Abu Dhabi’s population passed four million in 2024, boosting demand for property in the emirate.

New master developments including Al Hudayriat, Balghaiylam in Yas Island, Mamsha Gardens and Saadiyat Lagoons are driving sales of homes, the Adrec report said.

The premium segment recorded strong growth, representing 57 per cent of apartment sales values in the January to June period and more than double its share in 2023, the report said.

Sale prices have also risen amid higher demand. Apartment prices increased by 14 per cent year-on-year in the second quarter of 2025, while villa/town house prices rose by 11 per cent.

In the first half, Saadiyat Island registered the highest apartment sales price per square metre, of between Dh14,000 and Dh77,000, while Ramhan Island recorded the highest villa/townhouse price per sq m, at Dh37,000, the data shows.

Demand has been outpacing supply in Abu Dhabi since 2022, with the residential inventory standing at 400,000 units at the end of the first half of 2025.

Residential supply within Abu Dhabi is expected to increase by 4.6 per cent annually by 2028, adding about 64,000 new units, Adrec added.

The new report comes as developers including Aldar Properties have recorded strong sales this year.

This month, Aldar said it generated Dh1.8 billion from the sale of 450 town houses at Al Deem, in the north-east of Yas Island.

It also generated more than Dh3.5 billion in sales from Fahid Beach Residences and The Beach House, Fahid Island’s first residential developments, released in June, and Dh850 million from the Waldorf Astoria Residences project on Yas Island.

The rental market also performed strongly in the first half of 2025, with total lease values reaching Dh8.2 billion, up 6 per cent from the same period last year, Adrec data showed. Apartment rents increased by 21 per cent and villa/town house rents by 7 per cent in the past two years, it added.