Abu Dhabi - Real Estate Review Q2 2025

The Abu Dhabi residential market recorded accelerated growth during the second quarter of 2025, driven significantly by rising capital gains in the freehold apartment market. This comprehensive quarterly review equips decision-makers with a valuation-anchored analysis of the property cycle at the mid-year mark.

• Citywide residential capital values (VPI) accelerated by 2.2% quarterly and 8.1% annually to reach 128.3 points against a Q1 2021 baseline.
• Freehold apartment prices grew by 1.7% quarter-on-quarter and 5.9% year-on-year—marking the highest apartment annual growth rate witnessed in three years.
• Villa capital values demonstrated a sharper increase, rising by 2.6% quarterly and 10.1% annually to stand at 138.2 points.
• The residential rental index advanced 1.5% quarterly and 9.5% annually to 122.8 points, with apartment rents outpacing villas by rising a record 12.5% year-on-year.
• New housing supply remained tightly limited, with only 7.1% of the projected 2025 residential pipeline delivered during the first half of the year.
• Off-plan sales transactions experienced a sharp quarterly rebound, increasing 53.1% quarter-on-quarter, while ready-home transactions climbed 6.4% quarterly.
• In the commercial sector, office asking rents surged 28.3% annually and 6.1% quarterly, heavily supported by high occupancy levels in central business districts.
• Hospitality sector performance excelled, with Average Daily Rates (ADR) increasing 25.1% year-on-year and RevPAR expanding by 26.8%.

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 to accurately underwrite real estate exposure within the emirate.

Real estate developers requiring clear visibility into freehold apartment absorption rates and market liquidity to inform upcoming project pipelines.

Policymakers and government entities focused on monitoring sustainable price growth and long-term sector resilience.

High-net-worth individuals (HNWIs) and active market participants seeking to validate pricing, entry, and exit strategies in high-growth apartment corridors.

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

• Benchmark individual assets and institutional portfolios against authoritative, citywide capital value trends.
• Understand the precise valuation trajectories driving the outperformance of the freehold apartment market.
• Support complex pricing, acquisition, disposal, and lending decisions backed by an independent, evidence-led framework.
• Track market liquidity through comprehensive data on transaction volumes, off-plan momentum, and ready home sales transitions.