H1 2025: Bayut's market report highlights resilient growth in Abu Dhabi real estate

Zawya

16-07-2025

Dubai, UAE: Abu Dhabi, UAE – Bayut, the UAE's leading property portal, has released its analysis of search trends in Abu Dhabi's real estate market for the first half of 2025. The data from the PropTech giant underscores the capital's powerful growth momentum and how it continues to be a compelling proposition for global and local investors seeking stability and significant returns. The status of Abu Dhabi's real estate market as a premier investment destination is showcased by rising demand and driven by robust infrastructure development and investor-friendly government initiatives.
Property Buying Trends in Abu Dhabi
The Abu Dhabi property market has demonstrated exceptional resilience and growth in H1 2025, establishing itself as one of the region's most attractive investment destinations:
Budget-conscious property-seekers have focused on affordable areas such as Al Reef, Al Ghadeer, Khalifa City and Al Shamkha. Mid-tier investors have favoured Al Reem Island, Masdar City, Al Raha Gardens and Al Samha. Abu Dhabi's popular island communities, Yas Island and Saadiyat Island, have remained of significant interest to potential high-profile investors.
Listing prices for apartments in the affordable sector have risen by up to 7%, while budget-friendly villa prices have increased by as much as 5%. The mid-tier segment has seen apartment prices appreciate by 6% to 11%. Mid-tier villas reported a listing price increase of up to 2.68% in Al Raha Gardens and a surge of up to 26.7% in Al Samha, highlighting a sustained demand for family homes. Bucking the trend slightly, mid-tier villas in Baniyas have become cheaper by 1.45%.
According to the H1 2025 luxury property sales data, listing prices for luxury apartments in Yas Island and Saadiyat Island have increased by up to 17%, an unsurprising surge when the announcement of Disneyland Abu Dhabi is taken into account. The luxury villa segment has experienced comparatively moderate increases of 5% to 10%. Villa prices in Al Jubail Island have recorded a significant 17.8% decrease, most likely due to investor interest shifting towards Yas Island and Saadiyat Island.
Rental Yields In The Abu Dhabi Property Market
In the affordable segment, Al Reef apartments have delivered lucrative yields of 9.33%, followed by Al Ghadeer at 8.45%. Mid-tier apartments have offered promising returns of 8.41% in Masdar City and 7.59% in Al Reem Island. For luxury apartments, Yas Island has recorded yields of 7.15%, while Al Raha Beach has offered 6.58%.
Affordable villas in Al Reef have provided solid returns of 6.34%. Mid-tier villas have yielded 6.17% in Al Raha Gardens and 5.75% in Al Samha, while premium villas in Yas Island have offered investors a 5.46% return.
Top Picks for Off-Plan Projects
Abu Dhabi's diverse off-plan market has continued to attract significant interest from both local and international investors:
For affordable off-plan apartments, Al Reeman 1 in Al Shamkha and Bloom Living in Zayed City have garnered significant investor interest. Those looking for off-plan apartments in the mid-tier range have focused their interest on Yas Bay, whereas Nawayef Park Views on Hudayriat Island has emerged as the preferred choice in the luxury category.
Investors eyeing villa purchases have favoured Bloom Living in Zayed City, Al Reeman 2 in Al Shamkha and Reportage Village Abu Dhabi in Khalifa City for affordable options. Off-plan villa buyers have shown a preference for Yas Acres and Al Jurf Gardens in the mid-tier segment. Nawayef West in Hudairiyat Island and Saadiyat Lagoons have garnered the most investor interest in the luxury category.
Rental Trends in Abu Dhabi for H1 2025
Abu Dhabi's rental market strength has been driven by population growth and consistent demand for quality accommodation from expats:
For affordable rentals, Khalifa City and Al Shamkha have remained popular for both apartments and villas, with tenants also considering Shakhbout City for family homes. In the mid-tier segment, tenants have favoured Al Reem Island and Al Khalidiyah for apartments, while Al Raha Gardens and Al Muroor have been popular choices for villas. Yas Island and Saadiyat Island have remained the top luxury picks for both apartments and villas.
Rents for affordable apartments have increased between 2% and 21%, with the highest rental rises observed for 2-bedroom units in Al Nahyan, signifying growing demand for larger, budget-friendly units. Mid-range apartment rentals have mirrored this trend, with increases ranging from 3% to 68%; studio units in the Tourist Club Area have reported the highest surge following an increased demand for limited inventory.
Asking rents for luxury apartments have reported moderate to major increases of 3% to 14% across popular districts. However, 2 and 3-bedroom units in Saadiyat Island have experienced marginal price reductions of 0.47% and 2%, respectively.
In the affordable category, villa rentals have risen by up to 13% in prominent districts. Asking rents for mid-tier villas have generally risen by up to 7%. Luxury villa rentals have reported a mixed trend with up to 7% price increases for 4-bedroom units in Saadiyat Island and Al Bateen, but a somewhat surprising 6% decrease for 5-bedroom units in Saadiyat Island and Yas Island.
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.'