Abu Dhabi - Real Estate Review Q3 2025

The Abu Dhabi property market recorded its strongest performance to date during the third quarter of 2025, driven by a massive surge in off-plan transactions and robust demand for affordable freehold apartments. This comprehensive quarterly review equips decision-makers with a valuation-anchored analysis of the capital's rapidly accelerating real estate landscape.

• Citywide residential capital values (VPI) reached 133.4 points, recording a sharp acceleration of 4% quarterly and 10.5% annually.
• The apartment segment gained significant quarterly momentum, climbing 4.4% to reach 124.1 points, while villa prices posted a stronger annual increase of 11.6% to reach 143.2 points.
• Residential rental values advanced by 2.3% quarterly and 9.3% annually to 128.3 points, with apartment rents significantly outpacing villas by rising a record 12.8% year-on-year.
• The emirate recorded its highest-ever volume of off-plan transactions, capturing 79% of total sales and jumping 97.5% since Q2 and 118% compared to Q3 of the previous year.
• New housing supply remained severely constrained, with only 10.3% of the projected 2025 pipeline delivered as of September.
• Mortgage-backed purchases represented a massive 67% of all transactions, totaling AED 12.4 billion for the quarter.
• In the commercial sector, office rents grew 22.7% annually and 3.6% quarterly, supported by high occupancy rates in central business districts.

Institutional investors and family offices requiring a valuation-anchored baseline to track accelerating capital growth across Abu Dhabi's freehold districts.

Lenders and risk management teams seeking independent, evidence-based metrics on the AED 12.4 billion in mortgage-backed transactions to accurately underwrite real estate exposure.

Real estate developers requiring clear visibility into record-breaking off-plan absorption rates and constrained supply delivery to strategically time future project pipelines.

Multinational corporations and corporate occupiers evaluating commercial office supply constraints and rising asking rents to plan strategic leasing.

High-net-worth individuals (HNWIs) and active market participants seeking to validate pricing and entry strategies in high-growth locations like Saadiyat Island and Al Reef.

This comprehensive index equips decision-makers with the empirical clarity required to navigate Abu Dhabi's rapidly accelerating property cycle.

• Benchmark individual residential and commercial assets against authoritative, citywide capital value trajectories to optimise portfolio performance.
• Understand the precise valuation dynamics between record apartment rental growth and robust villa capital appreciation.
• Evaluate gross rental yields averaging 8.1% across the residential sector to optimise income-generating investment strategies.
• Support complex pricing, acquisition, and lending decisions backed by an independent, evidence-led valuation framework.
• Track market liquidity through detailed analysis of unprecedented off-plan registrations, ready home sales volumes, and evolving transaction ticket sizes.