Abu Dhabi’s property market experienced its strongest growth phase yet in Q3 2025, according to Economy Middle East, which featured insights from ValuStrat’s latest Abu Dhabi Real Estate Report. The ValuStrat Price Index (VPI) rose 10.5 percent year-on-year and 4 percent quarter-on-quarter, reaching 133.4 points based on Q1 2021 as the base quarter.
Villas continued to drive performance with 11.6 percent annual growth, while apartments recorded a 4.4 percent quarterly rise, supported by resilient end-user demand and limited supply. Residential rental values advanced 9.3 percent annually, with apartment rents jumping 12.8 percent year-on-year, marking the sharpest increase in recent years.
Off-plan sales accounted for 79 percent of total residential transactions, nearly doubling quarter-on-quarter, with average transaction values reaching AED 3.4 million. Supply constraints persist, with only 10.3 percent of 2025’s projected residential pipeline delivered by September. However, over 33,000 new units are expected by 2030, including high-profile launches such as Waldorf Astoria Residences Yas and Yas Living.
Beyond residential, the commercial market saw office rents up 22.7 percent YoY, while hospitality occupancy climbed to 81.5 percent with ADR and RevPAR rising over 20 percent. Industrial real estate prices also grew 13.7 percent annually, reflecting robust logistics demand.
ValuStrat’s analysis highlights Abu Dhabi’s strong fundamentals — steady economic growth, high occupancy, and investor-led expansion — reinforcing the capital’s position as a leading real estate hub in the region.
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