Abu Dhabi real estate: Property market sees growth in H1 2025 amid infrastructure boost
The findings were published in dubizzle's H1 2025 Abu Dhabi Property Sales and Rental Market report, which outlined trends across ready and off-plan markets, investor activity, and short-term and long-term rentals.
According to the report, transaction values increased in the first six months of the year, reflecting sustained demand across major communities.
Ready and off-plan sales drive Abu Dhabi real estate market in H1 2025
Growth was attributed to the impact of digital platforms, such as Madhmoun, which enhanced transparency, streamlined transactions and increased property visibility.
Infrastructure projects including Etihad Rail and the upcoming Disneyland on Yas Island were also cited as contributing factors to increased property values and rental demand in nearby areas.
Haider Khan, CEO of dubizzle and Dubizzle Group MENA, said: 'Abu Dhabi's real estate landscape is evolving rapidly, driven by ambitious infrastructure projects and a clear commitment to transparency. With initiatives like Madhmoun and landmark developments such as Disneyland on Yas Island being announced, the emirate is becoming an even more attractive destination for investors and residents alike.
'At dubizzle, we're proud to support this momentum by offering a wide range of 'Verified' listings and a dedicated off-plan experience. Through our alignment with ADREC and our upcoming AI-powered innovations, we remain committed to building a smarter, more transparent property market that reflects the bold vision of Abu Dhabi's future.'
Ready sales data showed increases across budget segments. Affordable apartment prices rose by 6.44 per cent, while villa prices increased by 3.38 per cent.
Mid-tier apartments rose by 4.91 per cent, and mid-tier villas appreciated by 4.84 per cent. Luxury apartment prices increased by 8.95 per cent, with luxury villas rising by 4.92 per cent.
Al Reef, Al Reem and Yas Island lead Abu Dhabi property returns in H1 2025
Al Reef recorded the highest price increase among affordable villa communities, with a return on investment (ROI) of 6.18 per cent.
Other communities that performed well in this segment included Al Shamkha, Khalifa City, Zayed City and Hydra Village.
Mid-tier villa buyers showed interest in Al Raha Gardens, Al Reem Island and Al Samha. Luxury villa buyers focused on waterfront locations, including Yas Island, Saadiyat Island, Al Jubail Island and Al Matar.
The off-plan market showed momentum in H1 2025 with a rise in project launches and buyer interest across price categories.
In the affordable off-plan apartment segment, Al Shamkha and Zayed City remained key areas.
Al Reeman 1 in Al Shamkha was popular, with apartments averaging AED 804,000. Granada at Bloom Living averaged AED 1.34 million, while Nawayef Park Views on Al Hudayriyat Island reached AED 3.56 million.
Affordable villa prices ranged from AED 1.01 million to AED 4.7 million, led by projects such as Al Reeman 2 in Al Shamkha and Al Naseem on Al Hudayriyat Island.
For mid-tier off-plan apartments, Al Reem Island remained active, supported by Vista 3 (AED 1.39 million), Reem Hills (AED 1.66 million) and Renad Tower (AED 1.58 million). Other active communities included Masdar City, Ghantoot and Shakhbout City.
Mid-tier villa demand was led by Reem Hills on Al Reem Island and Royal Park in Masdar City.
Luxury off-plan activity centred on waterfront areas including Yas Island, Saadiyat Island, Al Maryah Island, Al Raha Beach and Al Jurf.
Luxury apartment buyers favoured Yas Bay by Miraal (AED 2.11 million), Gardenia Bay by Aldar (AED 1.96 million), the Saadiyat Cultural District (AED 4.66 million), and Brabus Island in Al Raha Beach (AED 3.13 million). On Al Maryah Island, the St. Regis Residences and W Residences gained interest.
Luxury villa demand was led by Yas Riva on Yas Island, with additional activity in Saadiyat Island, Al Jubail Island and Al Jurf.
In the affordable segment, Al Reef led ROI for apartments at 9.46 per cent, followed by Al Ghadeer at 8.42 per cent. Hydra Village and Al Reef led for affordable villas with 8.42 per cent and 6.18 per cent ROI, respectively.
Mid-tier apartment ROIs reached 7.33 per cent in Al Reem Island and 7.20 per cent in Masdar City. Villas in Al Raha Gardens and Al Samha recorded ROIs of 6.23 per cent and 5.34 per cent, respectively.
Among luxury apartments, Al Maryah Island recorded the highest ROI at 8.48 per cent, followed by Yas Island (6.77 per cent) and Al Raha Beach (6.40 per cent).
Saadiyat Island and Yas Island led the villa segment with ROIs of 5.56 per cent and 5.40 per cent, respectively.
Abu Dhabi sees strong investor interest in affordable and luxury property segments
In the luxury apartment segment, Al Raha Beach, Corniche Area and Yas Island recorded average annual rents between AED 112,000 and AED 143,000.
Villas in Yas Island, Al Bateen and Saadiyat Island had average rents between AED 236,000 and AED 590,000.
Apartment rents increased in popular mid-tier locations. Electra Street averaged AED 66,000 (+12.33 per cent), Al Reem Island AED 114,000 (+9.24 per cent), and Al Khalidiyah AED 91,000 (+9.22 per cent).
Mid-tier villas in Shakhbout City, Al Samha and Al Raha Gardens averaged AED168,000, AED 144,000 and AED 184,000, respectively.
In the affordable segment, apartments in Khalifa City, Al Shamkha and Al Nahyan ranged from AED 45,000 to AED 62,000.
Villas in Khalifa City, Al Reef and Al Shamkha had rents between AED 135,000 and AED 199,000.
Al Reem Island and Masdar City were preferred mid-tier short-term rental areas, with average monthly rents of AED 11,410 and AED 8,350, respectively.
Luxury short-term rental demand remained focused on Yas Island, Al Raha Beach and Saadiyat Island.
Yas Island rents increased slightly to AED 12,560. Al Raha Beach recorded 21.93 per cent growth, reaching AED 13,050. Saadiyat Island remained the highest, with an average rent of AED 16,740.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
2 hours ago
- Khaleej Times
UAE: Stablecoin regulations encourage more users explore digital assets safely
Experts are optimistic the recent signing by US President Donald Trump of the Genius Act — creating a regulatory regime for dollar-pegged cryptocurrencies known as stablecoins — will not only give users the confidence to explore digital assets safely but will also draw more users in the UAE, especially newcomers, to crypto by making stablecoins safer and more mainstream for payments and decentralised finance (DeFi). The stablecoin market, which crypto data provider CoinGecko said is valued at more than $260 billion (Dh954 billion), could grow to $2 trillion (Dh7.3 trillion) by 2028 under the new law. It's a milestone that could pave the way for digital assets to become an everyday way to make payments and move money, experts told KT LUXE. The regulatory framework is also seen as a big leap from the time of 'speculative chaos' when stablecoin first came into being back in 2009. The UAE has also moved forward with regulations of AED stablecoins, noted Meera Judge, director, regulatory licensing and policy at Binance. 'When people feel safe, they're more likely to participate. Clear rules create room for innovation — and that's where we see real adoption start to take shape,' she said. Regulations serve as important guardrails, with enhanced transparency serving as the key factor in consumer protection. They build confidence and encourage people who might have been hesitant to explore crypto as a real option for diversifying their finances. In December last year, AE Coin secured the final Central Bank of the UAE (CBUAE) licence it needed to launch. It was developed under the CBUAE's digital payment token services framework for instant, secure, stable, innovative, low-cost, and efficient payment experience. 'The UAE's AED-backed stablecoin is a really exciting milestone. It shows how seriously the UAE is taking decentralised finance and its future role in global financial innovation. This isn't just about creating another stablecoin, it's a clear signal of the UAE's commitment to building a regulated, forward-thinking crypto ecosystem that can compete on the world stage,' Judge said. A constant Stablecoins are designed to maintain a constant value. For the UAE, its focus on a local fiat-backed stablecoin also reflects a regional ambition to diversify beyond the dominance of the USD stablecoins, which have long been the industry's gateway. This is very positive for the country as it is not only about necessity but also about creating opportunity. Judge explained: 'Local fiat stablecoins (like AE Coin) reinforce the seriousness with which countries are approaching crypto regulation and innovation. They help tailor financial tools to regional needs, supporting local businesses and consumers while promoting financial inclusion. 'Moreover, having a wider range of fiat-backed stablecoins contributes to a more diverse and resilient ecosystem, a key step toward making crypto relevant and accessible to people everywhere, not just in dollar-dominated markets,' Judge added. Gracy Chen, CEO of Bitget, shared the same analysis, and optimism that stablecoins will draw more users, especially newcomers. She told KT LUXE: 'The UAE's AED stablecoin regulations, effective June 2025, focus on local currency stability and centralised oversight by the Central Bank, while the US Genius Act targets USD-pegged stablecoins with a dual federal-state framework. Regional trade 'Both aim to enhance trust and adoption, but the UAE emphasises regional financial sovereignty, unlike the USD-centric US approach. Non-USD stablecoins like AED-backed tokens are crucial for regional trade, reducing USD reliance, and catering to local markets, driving global crypto diversity. Supporting AED stablecoins can attract MENA users, while USD stablecoin compliance ensures broader market access,' Chen explained. She added bank-backed USD and AED stablecoins promise faster, cheaper transactions, boosting liquidity, but may challenge existing tokens like USDT (Tether), increasing compliance costs for exchanges. 'This could lead to market concentration, potentially limiting innovation, while subjecting exchanges to stricter regulatory scrutiny.' Chen also pointed out the entry of major US banks (JPMorgan, Bank of America, Citigroup, Wells Fargo) and UAE banks (FAB, MBank, Zand Bank) into the stablecoin market will enhance crypto legitimacy, driving adoption and trading volumes on exchanges.
The National
10 hours ago
- The National
How the climate crisis is creating millions of refugees in the Middle East
• Remittance charges will be tackled by blockchain • UAE's monumental and risky Mars Mission to inspire future generations, says minister • Could the UAE drive India's economy? • News has a bright future and the UAE is at the heart of it • Architecture is over - here's cybertecture • The National announces Future of News journalism competition • Round up: Experts share their visions of the world to come
The National
10 hours ago
- The National
UAE Property: ‘How can I increase summer occupancy in my RAK rental unit?'
Question: I am buying an apartment in Ras Al Khaimah and want to rent it out for short-term rentals soon. How can I optimise summer occupancy and which local regulations must I adhere to? MP, Dubai Answer: Ras Al Khaimah is fast becoming a destination of choice, not just as a go-to staycation destination for the UAE holiday market, but also for longer-term visitors and tourists. With the arrival of the Wynn Al Marjan Island resort in 2026/2027, the emirate is likely to become more popular as a short-term destination. Here are a few things to remember and adhere to. By law, all tenancy contracts in RAK must be registered through the RAK Municipality e-portal. The fee is Dh25 ($6.8) plus 5 per cent of the annual rent. Unregistered contracts are unenforceable, stripping landlords of eviction rights and security deposit recourse. Standard residential leases are allowed up to four-year terms, but short-term leases of say two to four months must still comply with the Rent Act's eviction notice requirement, which is a minimum 90 days, and the security deposit rule, which is 5 per cent of the annual rent. Offer two- to four-month summer lets bundled with free utilities, complimentary AC servicing and optional maid services. UAE residents that enjoy staycations value turnkey, worry-free stays. List on leading short-let platforms such as Airbnb, local short-term rental agents and collaborate with GCC-focused travel agencies to tap into regional leisure traffic. Ensure your unit is presented in the best possible fashion by furnishing with high-quality appliances, blackout curtains, high-speed Wi-Fi, and a dedicated workspace to attract both families and remote working professionals seeking respite from the summer heat. Employ revenue management software to adjust nightly or weekly rates based on occupancy forecasts or get comparable data from portals and local holiday home agents. Look out for any local events that will potentially capture higher premiums. Conduct professional cleaning and safety inspections between tenancies to maintain high review scores. Offer flexible check-in/out times and transparent cancellation policies to build guest trust. Monitor competitor rates regularly to ensure your pricing remains competitive without eating into your yield. By combining regulatory compliance with targeted marketing and professional service levels, part-time RAK landlords can boost summer occupancy from roughly 45 per cent (unmanaged) to over 75 per cent, capturing premium short-let rates and maximising annual income. Watch: Businesswoman moves from Dubai to RAK to find some quiet Q: I would be interested to understand what are the emerging areas in Abu Dhabi and Sharjah in terms of capital appreciation, rental yields and which developers I should work with? CP, Sharjah A: While Dubai commands the headlines, Abu Dhabi and Sharjah are quietly delivering attractive risk-adjusted returns in well-priced, master-planned communities. I will list below some top picks that I think combine credible developer track records, infrastructure momentum and balanced capital appreciation. Starting with Abu Dhabi, the main master developer is Aldar. Some of its main projects are: Al Reem Island: Boasting a 7.2 per cent year-on-year price rise in the first quarter of 2025 and gross rental yields of 7.6 per cent for apartments, Al Reem Island blends waterfront views with high-street retail. The Central Market and Gate Towers precincts have strong presales, minimising completion risk and ensuring pipeline transparency. Yas Island: Driven by entertainment megaprojects such as Warner Bros, Ferrari World, Sea World, Yas Waterworld and the Yas Mall expansion, luxury apartments command 6.5 per cent to 7 per cent yields, with prices up 6.6 per cent in early 2025. The upcoming first Disney World in the Middle East will further elevate property prices and demand for both long- and short-term rentals. Al Ghadeer: A reclaimed land community by Aldar located on the Dubai-Abu Dhabi border, it offers entry-level pricing (sub-Dh1 million studios) and yields near 9.9 per cent, underpinned by affordable payment plans and infrastructural upgrades connecting to Sheikh Mohammed Bin Zayed Road. Main projects in Sharjah include: Aljada by Arada: This is a fully integrated town centre featuring three schools, 25,000 residential units, a 4.4-kilometre retail boulevard, hotels and public plazas, along with large green spaces and family entertainment areas. Aljada's off-plan apartments yield 5 per cent to 7 per cent, with an expected 7.5 per cent return on investment on handover. Arada's track record of delivering three large-scale projects on time adds to investor and end-user confidence. Tilal City (Sharjah Asset Management): Modelled on Mediterranean lagoons, Tilal City's early studio and one-bedroom launches delivered 6 per cent to 8 per cent yields, with mid-teen capital growth forecast as schools, clinics and malls open next year. Maryam Island: Launched in 2024, this waterfront mixed-use island has seen soft-launch price uplifts of around 8 per cent within six months and yields of around 6 per cent. This is driven by Sharjah's tourism push and the project's proximity to the Corniche.
