Abu Dhabi residential market posts robust growth in Q2
MAYS IBRAHIM (ABU DHABI)Abu Dhabi's residential market saw strong growth in Q2 2025, with average prices climbing 6.4% quarter on quarter to Dh1,230 per square foot, according to the latest market review by real estate consultancy Knight Frank.This brings the total annual growth to 17.3%, placing current prices at 31.3% higher than Q1 2020 levels.The report showed that the apartment segment outperformed all others, with values increasing by 6.8% over the quarter to Dh1,296 per square foot - up 7.3% year on year and 28.7% above Q1 2020 levels.Villa prices also saw solid gains, with prices increasing 3.4% quarter on quarter to Dh1,103 per square foot, 42.3% higher than Q1 2020 and 7% above the 2014 market peak. In terms of submarket performance, Al Raha Beach led the apartment segment with a price growth of 11% in H1 2024, closely followed by Al Saadiyat Island at 10%. For villas, Al Saadiyat Island posted the strongest annual growth at 28%, while Yas Island recorded a 22% increase in H1 2025. Only one villa transaction was recorded on Al Reem Island during the first half of the year, according to the report. A total of 890 residential units were delivered in H1 2025, while a substantial pipeline of 33,074 homes — 62% of which are apartments — remains under construction, with delivery scheduled by 2029. Residential transactions activity reached Dh9 billion during H1 2025 — a 36% decline compared to the same period last year, according to the report. However, its figures show that the luxury segment remained resilient. Transactions involving high-end homes priced above Dh10 million accounted for a record 25% of total transaction value in H1 2025, more than triple their 2019 share of 7%.
The report revealed that a total of 141 such homes were sold during the first half of the year, matching H1 2024 volumes but marking a 41% increase compared to H1 2023.
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