Abu Dhabi’s property market achieved its strongest quarterly growth on record in Q3 2025, as demand for affordable freehold apartments and premium villas drove a sharp rise in both prices and rents, according to Aletihad, featuring ValuStrat’s latest real estate insights.
Average residential prices rose 4 percent quarter-on-quarter and 10.5 percent year-on-year, the fastest pace since 2022. Villas led annual growth at 11.6 percent, supported by double-digit increases on Saadiyat Island (+21.2%), Al Reef (+8.1%), and Al Raha (+7.7%). Apartments followed closely with 4.4 percent quarterly and 13.3 percent annual gains in key areas.
Rental performance mirrored the sales uptrend, with rents rising 2.3 percent QoQ and 9.3 percent YoY. Apartments recorded higher momentum than villas, achieving average gross yields of 8.5 percent compared with 7 percent for villas. Citywide occupancy averaged 88.1 percent, reflecting limited new supply and sustained tenant demand.
Off-plan sales reached an all-time high, representing 79 percent of total transactions, as average off-plan prices rose 13.2 percent QoQ and 22.4 percent YoY. The average transaction value increased to AED 3.4 million, driven by robust project launches across Yas Island and Zayed City.
Commenting on the trend, Haider Tuaima, Managing Director and Head of Real Estate Research at ValuStrat, noted that construction delays and material cost pressures have constrained supply, reinforcing price stability. He added that annual price growth could accelerate to 12–15 percent by the end of 2026.
The office and logistics markets also recorded steady expansion, with office rents up 22.7 percent YoY, while industrial assets and warehouses rose 13.7 percent YoY, highlighting Abu Dhabi’s broad-based property resilience.
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