Bayut: Abu Dhabi real estate continues to attract strong investor interest in H1 2025
Property buying trends in Abu Dhabi
Abu Dhabi's real estate market has shown resilience and strong growth in the first half of 2025, attracting investors across segments:
Affordable properties
: Buyers looking for budget-friendly options focused on areas like Al Reef, Al Ghadeer, Khalifa City, and Al Shamkha.
Mid-tier interest
: Al Reem Island, Masdar City, Al Raha Gardens, and Al Samha were popular among mid-tier investors.
Luxury segment
: Yas Island and Saadiyat Island remained top picks for premium buyers, further boosted by announcements like Disneyland Abu Dhabi.
Listing prices reflected the demand:
Affordable apartment prices rose by up to 7 per cent, while villa prices increased by as much as 5 per cent.
Mid-tier apartment prices appreciated between 6 per cent and 11 per cent. Villas saw notable gains in Al Samha (up 26.7 per cent) and Al Raha Gardens (up 2.68 per cent), though Baniyas recorded a slight 1.45 per cent dip.
Luxury apartment prices on Yas Island and Saadiyat Island climbed by up to 17 per cent. Villa prices in this segment increased 5 per cent to 10 per cent, except for Al Jubail Island, where prices declined 17.8 per cent amid shifting investor focus.
Rental yields in Abu Dhabi
Rental yields remained attractive across all segments:
Affordable apartments
: Al Reef led with 9.33 per cent, followed by Al Ghadeer at 8.45 per cent.
Mid-tier apartments
: Masdar City (8.41 per cent) and Al Reem Island (7.59 per cent) delivered strong returns.
Luxury apartments
: Yas Island (7.15 per cent) and Al Raha Beach (6.58 per cent) performed well.
Villas
: Al Reef (6.34 per cent) topped affordable villas, while Al Raha Gardens (6.17 per cent) and Al Samha (5.75 per cent) led mid-tier returns. Yas Island offered 5.46 per cent for premium villas.
Off-plan project preferences
Off-plan developments attracted significant interest:
Affordable apartments
: Al Reeman 1 (Al Shamkha) and Bloom Living (Zayed City) were top choices.
Mid-tier
: Yas Bay attracted demand.
Luxury
: Nawayef Park Views (Hudayriat Island) stood out for high-end buyers.
Villas
: Affordable options included Bloom Living, Al Reeman 2, and Reportage Village Abu Dhabi.
Mid-tier villa buyers leaned toward Yas Acres and Al Jurf Gardens, while luxury demand was high for Nawayef West and Saadiyat Lagoons.
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Rental trends in H1 2025
Population growth and expat demand kept rental activity strong:
Affordable rentals
: Khalifa City, Al Shamkha, and Shakhbout City remained popular for families.
Mid-tier
: Tenants preferred Al Reem Island and Al Khalidiyah for apartments, and Al Raha Gardens and Al Muroor for villas.
Luxury segment
: Yas Island and Saadiyat Island continued to dominate demand.
Rental price changes varied:
Affordable apartment rents rose 2 per cent to 21 per cent, with 2-bedroom units in Al Nahyan seeing the sharpest increase.
Mid-tier apartment rents climbed 3 per cent to 68 per cent, led by studio units in the Tourist Club Area.
Luxury apartment rents increased 3 per cent to 14 per cent across most districts, though some units on Saadiyat Island saw slight declines.
Villa rents in affordable districts rose by up to 13 per cent, mid-tier areas saw increases up to 7 per cent, and luxury villa rents saw mixed movement. While 4-bedroom units in Saadiyat Island and Al Bateen rose by 7 per cent, 5-bedroom villas in Saadiyat and Yas Islands dropped by 6 per cent.
Market outlook
Commenting on the findings, Haider Ali Khan, CEO of Bayut, CEO of Dubizzle Group MENA, and Board Member of the Dubai Chamber of Digital Economy, said: 'Abu Dhabi's real estate market has been on a steady upward path this year, and the interest we're seeing speaks for itself with over 9.3 million visits recorded on Bayut's Abu Dhabi listings in just six months. With strong demand and smart initiatives such as ADREC's Madhmoun boosting transparency, the capital is shaping up to be a really exciting space for both homebuyers and investors. All signs point to Abu Dhabi emerging as one of the most exciting and future-ready real estate destinations in the region.'
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Luxury villa rentals have reported a mixed trend with up to 7 per cent price increases for 4-bedroom units in Saadiyat Island and Al Bateen, but a somewhat surprising 6 per cent decrease for 5-bedroom units in Saadiyat Island and Yas Island. Haider Ali Khan, CEO of Bayut, CEO of Dubizzle Group MENA and Board Member of the Dubai Chamber of Digital Economy, said: 'Abu Dhabi's real estate market has been on a steady upward path this year, and the interest we're seeing speaks for itself with over 9.3 million visits recorded on Bayut's Abu Dhabi listings in just six months. With strong demand and smart initiatives such as ADREC's Madhmoun boosting transparency, the capital is shaping up to be a really exciting space for both homebuyers and investors. All signs point to Abu Dhabi emerging as one of the most exciting and future-ready real estate destinations in the region.'
