Abu Dhabi Property Deals Cross Dh164b As Ready Homes Lead

(MENAFN- Khaleej Times)

Abu Dhabi's property market closed 2025 with another year of strong growth, led increasingly by demand for ready homes as buyers prioritised immediate occupancy, rental yields and price visibility over longer construction timelines.

Total real estate transactions in the emirate surpassed Dh164 billion for the year, underlining sustained investor confidence amid rising population inflows, expanding employment opportunities and continued government support for housing and infrastructure.

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Data from market platforms and brokerage firms show transaction volumes climbing at a faster pace than new supply deliveries, particularly in completed apartments and villas across the capital's prime island developments and maturing suburban communities.

Analysts say the trend reflects a shift in buyer behaviour, with end-users and investors favouring completed units that offer instant rental income and reduced execution risk, especially as financing costs and global economic uncertainty remain elevated.

Luxury apartments on Yas Island, Saadiyat Island and Al Raha Beach were among the strongest performers in the ready segment, benefiting from limited resale inventory, lifestyle-driven demand and proximity to leisure assets. Average prices per square foot on Yas Island rose by nearly 17.7 per cent over the year, according to dubizzle, outpacing broader market growth and placing upward pressure on rents.

Brokers including CBRE and Savills estimate that prime waterfront apartment prices in Abu Dhabi have now exceeded pre-pandemic levels, supported by strong absorption from both local buyers and overseas investors.

Mid-market apartment demand remained concentrated on Al Reem Island, Masdar City and Baniyas, where pricing remains comparatively accessible while offering established infrastructure and rental liquidity. More affordable neighbourhoods such as Al Reef, Al Ghadeer and Al Shamkha continued to attract first-time buyers and yield-focused investors, with Al Reef recording a 12.7 per cent rise in average apartment prices per square foot.

Rental yields in these communities remained among the highest in the capital, with Al Reef delivering returns of about 9.35 per cent, reflecting strong tenant demand and limited new supply.

The ready-villa market showed a similar divergence between prime and peripheral locations. Abu Dhabi's island communities, including Yas Island, Saadiyat Island and Al Jubail Island, attracted sustained interest from high-net-worth buyers seeking larger homes and lifestyle amenities. Mid-range villas in Al Reem Island, Al Raha Gardens and Al Samha also recorded solid price gains, with the average villa price on Al Reem Island rising to about Dh608,700. Emerging suburban districts such as Al Reef, Al Shamkha and Zayed City remained popular among buyers seeking larger plots at lower entry prices, a trend reinforced by improving road connectivity and public services.

Rental market data points to continued upward pressure on leases across most segments, driven by population growth and a tightening supply of completed units. Annual apartment rents in Al Reem Island, Al Muroor and Al Khalidiyah rose to around Dh119,000, Dh54,000 and Dh96,000 respectively, while luxury apartment rents on Yas Island and Al Raha Beach remained among the highest in the emirate. In the villa segment, average annual rents in Al Samha climbed to about Dh140,000, according to dubizzle, with Khalifa City and Al Nahyan standing out as key locations for affordable rentals across both apartments and villas.

While off-plan sales continued to play a significant role in overall market activity, industry executives say the balance is gradually shifting toward completed stock. Developers launched a steady pipeline of projects during the year, but many buyers preferred ready homes amid rising construction costs and longer delivery timelines. Research from JLL indicates that completed residential supply in Abu Dhabi grew at a slower pace than demand in 2025, helping to sustain price growth in established communities.

Haider Ali Khan, CEO of Bayut and Dubizzle Group Mena, said Abu Dhabi's performance reflected deepening confidence in the emirate's long-term fundamentals. He pointed to government investment in infrastructure, housing and digital services as key enablers of growth, alongside the increasing role of property technology in improving market transparency.

“As activity scales, access to clear, reliable data becomes essential,” Khan said.“Our focus is on using technology to make the market easier to navigate for buyers, investors and developers. Abu Dhabi's shift toward a more digitally transparent, investor-friendly environment is well underway.”

Analysts expect the ready-homes segment to remain a central driver of the market in 2026, particularly if interest rates stabilise and population growth continues.

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