Abu Dhabi’s real estate market is gaining momentum by attracting foreign investors and residents to its popular areas, freehold zones, waterfront and lifestyle-centered communities, according to experts.
Leading industry specialists, analysts and executives said Yas Island, Saadiyat Island and Al Reem Island remain popular choice of global investors and high net-worth individuals (HNWIs) who are willing to be part of the life-style destination of one of the most developed cities of the world.
Referring to Bloom Holding recent report, they said Abu Dhabi has over 30 projects in development and its many options and reasonable prices make this city highly desirable for buyers aiming for medium- and long-term growth.
In line with the market trends, Knight Frank’s Destination Dubai 2025 report highlighted $1.6 billion in private capital targeting Abu Dhabi’s residential real estate — making it the UAE’s second most popular investment hub after Dubai. While Abu Dhabi trails Dubai’s $10.3 billion, it offers average prices 30% lower, appealing to both investors and homebuyers.
The report also showed growing interest from HNWIs as about 19% plan to purchase in 2025 — up from 14% in 2024 due to strong demand among individuals worth $30 million to $50 million with 75% eyeing Abu Dhabi homes. Additionally, 65%of individuals worth more than $50 million plan to buy in the capital.
In November, ValuStrat issued a similar assessment, noting that Abu Dhabi’s real estate market posted its strongest growth on record in the third quarter, driven by rising residential values, firmer rents, solid demand, and elevated off-plan activity.
Anna Skigin, Founder and CEO, Frank Porter, sees promising outlook for Abu Dhabi real estate market due to rising demands from the investors and long-term residents.
Strong fundamentals
Andrew Cummings, head of Residential Agency at Savills Middle East, said Abu Dhabi’s strong fundamentals, expanding roster of global developers, and growing stock of branded residences are deepening its position as a key regional hub for quality real estate investment.
“Abu Dhabi continues to demonstrate its long-term appeal among both domestic and international investors. We are seeing sustained appetite for well-designed, high-quality homes that align with evolving lifestyle aspirations,” Cummings said.
Strong demand has resulted in higher average sales rates across the Abu Dhabi market increasing 16% year-on-year basis from Dh14,485 per sqm in third quarter of 2024 to Dh17,394 in third quarter of 2025, according to the latest report by real estate services firm Savills.
“Average capital values were driven by increased appetite for apartments, which represented 78% of total transactions. Supply also expanded, with over 5,700 units launched in third quarter, reflecting growing interest from both regional and international developers. Branded residences continued to gain momentum, highlighted by the sell-out of Waldorf Astoria Residences Yas, which achieved Dh850 million in sales on launch day,” the report said.
Ben Crompton, Managing Partner, Crompton Partners, said 2025 was a very positive year for the company and Abu Dhabi real estate in general.
Promising Outlook
Anna Skigin, Founder and CEO, Frank Porter, sees promising outlook for Abu Dhabi real estate market due to rising demands from the investors and long-term residents.
“As an Airbnb and short-term property management company, 2025 has been a great year for Frank Porter in Abu Dhabi. Every unit we manage has enjoyed an exceptionally high level of occupancy — above 88% on average. The supply for short-term properties is relatively limited in Abu Dhabi, and as a result, there’s an incredibly high level of demand,” Skigin told BTR.
“We anticipate that 2026 will perform just as well — if not better — because there are numerous new properties opening up, including gorgeous beachfront ones, so we hope this will lead to a spike in business. There has been an almost 50% growth versus 2024 in real estate transactions this year. So, there’s a lot going on in Abu Dhabi. People love this city, and it’s a great alternative to Dubai for those seeking relaxed vibes and a slower pace. It’s an interesting place for tourists and residents alike, and of course, for investors as well,” she said.
Ben Crompton, Managing Partner, Crompton Partners, said 2025 was a very positive year for the company and Abu Dhabi real estate in general.
“Most reports, up until the end of third quarter of 2025, are showing significant year-on-year increases in both rents and sale prices. For example, the new Colliers third-quarter report shows rents up 16% for apartments and 7% for villas, and sale prices up 28% for apartments and 25% for villas. These are massive gains, the likes of which we haven’t seen since 2014. They read more like Dubai over the last few years than our quieter, more conservative capital city,” Crompton told BTR.
And the outlook doesn’t look much different going forwards either, he said.
Growing interest is the key catalyst for growth within the Abu Dhabi real estate market.
While ADREC’s first-half report 2025 has shown that supply of new units coming onto the market will be subdued into 2028, with less than 5% increases in inventory each year.
“In 2024, the population increased by over 8% — so if this imbalance is maintained, we will continue to see these price and rent increases across the board.”
Will McKintosh, Regional Partner, Head of Residential, Mena, Knight Frank, said there is growing interest from international buyers, thanks to Abu Dhabi’s world-class amenities and supportive business environment.
“Our data shows 7% of buyers prefer off-plan homes, indicating demand for immediate-use properties.”
Shehzad Jamal, partner, Strategy & Consulting, Mena, said about 63% of HNWIs buy for personal use — as main residences, holiday homes, or for retirement. The rest are investing. “For those priced out of Dubai, or looking to diversify, Abu Dhabi’s appeal is growing — supported by 17% year-on-year residential price growth.”
Growth Catalysts
Crompton said the biggest catalyst is the booming Abu Dhabi economy. The International Monetary Fund (IMF) expects the Emirate of Abu Dhabi to post economic growth of around 6% for 2025 — that will outstrip almost every other economy in the world, including the United States and China.
“The IMF predicts 5.8% growth for 2026, so everything looks very rosy for real estate in the coming years. Add to that the willingness of the Abu Dhabi government to bring in more and more business from abroad, using vehicles like the ADGM to attract them, and we’ll only see the economy continue to grow,” he said.
Growing interest is the key catalyst for growth within the Abu Dhabi real estate market. The capital is attracting lots of international tourists, as well as significant deals, according to Skigin.
“There’s also a lot of infrastructure — megaprojects and rail developments such as Etihad Rail, which raises its global appeal. Cultural and lifestyle developments such as museums, amusement parks, and attractions also offer both residents and tourists several options to enjoy Abu Dhabi, and a compelling reason to buy in the capital.”
Challenges Ahead
Skigin said Abu Dhabi doesn't build the skyscrapers that Dubai does. It has a lower cityscape — so it builds out, as opposed to building up. In terms of demand — which is extremely high (and the prices match this), limited supply presents itself as the key challenge.
“In terms of challenges, I would say it is limited space,” she said.
She said the other challenge for our business, for example, and for people who want to rent short-term, is that the regulation is still a bit new and there are a lot of areas that are being worked out. So, it’s not as easy to let a short-term property in Abu Dhabi, in comparison to Dubai. However, a significant number of challenges have already been addressed over the past two years.
“So, I anticipate 2026 will be the year where a lot of minor challenges will be ironed out, and it will be easier for people to purchase a property and rent it out short-term in Abu Dhabi. I see 2026 being the year property owners feel much more comfortable with their investment.”
The Abu Dhabi government is business-friendly and is always looking to open the Emirate up to innovation and commerce.
Crompton of Crompton Partners has a different view and said the future looks bright for Abu Dhabi real estate market.
“In terms of affecting sales and rental prices in the near term, we don’t see many challenges. Supply is manageable, and if demand stays as high as it is predicted to, it should be smooth sailing for the real estate sector. Of course, there is always the opportunity for external shocks,” Crompton said.
He said there is talk of an “AI Recession” due to the predicted gains from artificial intelligence not being realised as quickly as some predicted.
“There is always the regional instability which could affect us here in the Gulf. Also, the population is unpredictable — Abu Dhabi relies on immigration for most of its growth, and so although we can predict supply with scientific accuracy, it is harder to tell how attractive the city will be going forward,” Crompton said.
“One thing is certain, however, the Abu Dhabi government is business-friendly and is always looking to open the Emirate up to innovation and commerce. As long as this is maintained, the future looks bright whatever clouds may appear,” he said.
In its latest report, the real estate consultancy Valustrat said supply constraints continue to impact the market, with only 10.3% of the projected 2025 residential supply pipeline delivered by September.
“Over 33,000 new residential units are expected by 2030, including branded ultra-luxury properties like Aldar’s Waldorf Astoria Residences Yas, and community-focused developments such as Yas Living and Marbella in Zayed City,” the report said.
Additionally, partnerships like the one between Yas Holding and Masdar City are set to add over 1,000 new villas and townhouses, it added.
