Abu Dhabi real estate market booms in 2025: Key price trends revealed

The Abu Dhabi real estate market continued its strong upward trajectory in 2025, with significant growth in property values and investor interest across the city

Abu Dhabi

While the real estate sector in Dubai witnessed a glorious 2025, recording transactions worth AED 686.8 billion, Abu Dhabi isn’t far behind. As per a new study, the property value and investor interest in the city continued their upward trajectory in 2025, too, thanks to the ongoing infrastructure investment, stable economic fundamentals, and government initiatives focused on fostering long-term growth in the sector.

According to a study by Bayut, the UAE's leading PropTech portal, there is an upward  price movement in several key residential communities, reflecting Abu Dhabi's sustained  attractiveness to both end-users and investors.

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Property values across Abu Dhabi have continued their upward trajectory in 2025, the  report said, listing the areas focused on by budget-conscious buyers. They include Al Reef, Al Ghadeer, Khalifa City and Al Shamkha. In the mid-tier category, Al Reem Island, Masdar City, Al Raha Gardens, and Al Muntazah have emerged as popular choices, while luxury buyers continued to favour Al Raha Beach, Yas Island and Saadiyat Island for their premium lifestyle offerings, the report said.

Al Reem Island also leads the region in demand for apartments. While apartment prices in affordable communities climbed by 10% to 13%. Mid-tier apartment values have risen by up to 19%, led by Al Reem Island, reflecting sustained demand for waterfront living. As for the luxury segment, the process rose by 27 per cent with Yas Island and Saadiyat Island seeing the strongest growth, thanks to the announcement of Disney World Abu Dhabi.  

Villa prices in established communities have also increased by up to 11%, with Al Reef leading the growth. Mid-tier villas have seen price surges ranging from 2% to 41%, with Al Samha registering the strongest appreciation. In the luxury segment, villa prices on Yas  Island and Saadiyat Island increased by 10% to 13%, while Al Jubail Island saw a price correction of up to 19%, making select high-end properties more accessible.

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