Abu Dhabi’s housing market just set a new milestone: sales of ready villas and townhouses have jumped 72% in the first half of 2025, marking the strongest performance in four years.
Between January and June, around 700 ready units changed hands, driven by families seeking more space and investors chasing strong rental yields and long-term value.
While villa demand soared, overall residential activity told a different story. Across ready and off-plan properties, sales totaled AED 8.9 billion ($2.4 billion) from 3,300 transactions — a sharp dip of 33% in value and 37% in volume compared to the same period in 2024. The slowdown stems from fewer new launches, which has funneled demand toward completed homes.
A Market in Transition
According to Cavendish Maxwell’s latest Abu Dhabi residential performance report:
2,400 units were delivered in H1 2025, with 10,400 more under construction.
Apartment prices rose 14% year-on-year, while villas climbed 11%.
The average ready-home sale hit AED 2.5 million, up from AED 2.1 million last year.
Apartments still dominate, taking 73% of sales, though slightly down from 76% a year ago.
Mortgages jumped 12% to AED 3.5 billion across 1,700 loans, with villas and townhouses making up AED 2.5 billion.
Rentals climbed 14% year-on-year, with apartments leading the way.
Price Hotspots
Some neighborhoods are seeing particularly sharp gains. Apartment values surged nearly 17% on Al Reem Island and 15.6% on Yas Island. Villas followed a similar trend, with Yas Island prices up more than 14% and Saadiyat Island rising by 11%.
Rental demand is also heating up. Yas Island rents jumped almost 27%, while Al Reem Island and Al Reef followed with 21% and 16% increases respectively.
What’s Next
Developers are preparing to reenergize supply in the coming months. Large off-plan projects from Aldar, Modon, and other private builders are expected to hit the market before year’s end. By 2026, nearly 11,000 additional units could push Abu Dhabi’s total residential stock to the edge of 300,000 homes.
Analysts say the emirate’s property sector remains resilient, buoyed by Vision 2030, steady population growth, and wider economic momentum across the GCC. For now, the strongest appetite sits firmly with ready homes — a sign that buyers want properties they can step into today, not tomorrow.
