The latest Abu Dhabi annual review and outlook report for 2025 from ValuStrat, a globally recognised consultancy specialising in multi-sector advisory services, has revealed insightful dynamics in Dubai’s real estate market. The report comprehensively analyses the residential, commercial, and hospitality sectors and underscores a market showing robust growth and market activity.
Haider Tuaima, Director and Head of Real Estate Research, shares his synopsis of Abu Dhabi’s real estate market.
According to him, the market maintained its positive momentum across most asset classes in 2024.
The ValuStrat Price Index (VPI) for Abu Dhabi's key residential investment zones reached 123 points in Q4, with villas and apartments recording 131.2 and 115.2 points, respectively, based on a baseline of 100 points established in Q1 2021. Villas led the growth with annual capital gains of 8.9%, while apartments posted a 3.5% increase.
Residential occupancy was estimated at 86%, with villa asking rents rising by 6.7% and apartment rents increasing by 9% yearly.
Demand for ready properties surged by 56% in 2024, driven by more tenants transitioning to home ownership, as reflected in the growing number of mortgage transactions. In contrast, off-plan sales declined by 40.3% compared to 2023, following a decrease in the number of new project launches.
Abu Dhabi's office rental rates grew significantly, with occupancy rates above 90% across the board. Driven by strong demand for high-quality commercial space, asking rents increased by 25.9% in 2024. Other commercial assets in Abu Dhabi showcased robust performance across key sectors. Major shopping malls maintained a high average occupancy rate of 89%, reflecting strong retail demand. Meanwhile, as of the first nine months of 2024, the hospitality sector reported a 79% hotel occupancy rate, coupled with a significant 19% annual increase in Revenue per Available Room (RevPAR).
He concludes that the overall, Abu Dhabi's market remained positive, fuelled by strong demand, economic growth, and investor confidence.
To learn more about ValuStrat's real estate market capabilities and our research outputs, please visit ValuStrat's Insights Webpage.
About ValuStrat:
ValuStrat is an international consulting group providing Advisory, Valuations, Research, Transaction Advisory, Due Diligence and Industrial Consulting services, working across various industry sectors. With 45+ years of experience, a network of 14 offices in 5 countries and a client base of 1,000 corporations across the Middle East, UK, Europe and Africa, ValuStrat assists diverse clients, from governments, multinationals, large local corporations and financial institutions to startups, SMEs and family businesses. For Valuation services, it is the preferred service provider to over 120 financial institutions across the EMEA region.
For a detailed perspective on the property market, visit: Dubai - Review 2024 - Outlook 2025
