These are the five factors fuelling the Abu Dhabi property boom
Residential prices have jumped as much as 35 percent in the first half of 2025 and the capital's transformation is no longer just about blueprints and buzzwords. It's here, it's happening, and it's attracting serious attention.
But why now, you may wonder? Well, real estate agency Oia Properties has identified five factors influencing the property market boom in Abu Dhabi – from next-gen transport to world-class lifestyle developments. Here's what's behind the impressive growth…
1. Disney is coming – and it's a game-changer
Yes, you read that right. Disney Abu Dhabi is officially on the way, and it's set to supercharge the capital's status as a top-tier family destination.
Expect ripple effects across the property market, as demand for second homes, holiday rentals and family-focused communities continues to soar. Think parks, waterfronts and villas just minutes from the magic.
2. Flying taxis are (almost) here
By 2026, electric air taxis are set to start buzzing between Abu Dhabi and Dubai in just 20 minutes. That's a commute revolution and a catalyst for new residential corridors. These flying taxis could redefine where people choose to live, work and invest – bringing currently overlooked neighbourhoods into the spotlight.
3. Etihad Rail is on track to transform everything
The upcoming Etihad Rail network will seamlessly connect Abu Dhabi with other major UAE cities, drastically improving access to outer communities.
Developments that were once seen as 'a bit far out' are suddenly looking like prime real estate. Expect outer suburbs and lifestyle islands to see increased investor interest and rising values.
4. Branded residences are hotter than ever
Ultra-luxury is in. Iconic names like Waldorf-Astoria, Brabus and The W are rolling out branded residences in the capital, bringing hotel-level living to private homes. This trend reflects Abu Dhabi's growing global appeal to ultra-high-net-worth individuals, many of whom are now choosing the capital as their second (or third) home.
5. Green, wellness-driven living is in demand
Sustainability is no longer a nice-to-have – it's a must. Eco-conscious communities are outpacing traditional builds, with wellness and ESG credentials driving buyer decisions. Take Al Fahid Island, now the first island globally to be Fitwel certified and LEED pre-certified – a perfect example of how the capital is blending luxury with purpose.
By the numbers:
Property prices up 10-35 percent YoY
Off-plan and ready sales are booming in areas like Saadiyat, Yas, Al Reem and Al Hudayriyat
Rental yields remain strong thanks to job growth and a rising population
Whether you're an investor or just love watching a city reinvent itself, one thing's clear: Abu Dhabi is not waiting for the future – it's building it.
Summer in Abu Dhabi
The 27 best things to do indoors this summer in Abu Dhabi
It's time for some air-conditioned bliss
The best things to do this weekend in Abu Dhabi
Your full weekend itinerary
25 brilliant beach and pool day passes in Abu Dhabi
Grab your SPF – a lush day by the water awaits
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
UAE Moments
13 hours ago
- UAE Moments
Sharjah to Close Key Roads for the Etihad Rail Project
Sharjah's Roads and Transport Authority (SRTA) has announced the closure of roads connecting Maliha (Mleiha) Street and the Sharjah Ring Road, near University Bridge, starting Friday, August 15, as part of the second phase of the Etihad Rail project. This step reflects the emirate's evolving role in the UAE's ambitious national railway initiative. The closure follows a similar two-month restriction earlier in the summer, from July 1 to August 30, which affected the same route to accommodate ongoing rail construction. During that period, SRTA urged motorists to plan and use alternative routes to mitigate traffic delays. The road closure is instrumental in facilitating the construction of the future Sharjah passenger station, located near University City, a strategically chosen hub owing to its proximity to Sharjah International Airport, numerous educational institutions, and vital urban infrastructure. Upon completion, the Etihad Rail network will transform connectivity across the UAE, offering high-speed travel and easing congestion between key emirates such as Abu Dhabi, Dubai, Sharjah, and Fujairah
Arabian Business
13 hours ago
- Arabian Business
Dubai office sales values up 84% as transactions hit AED 5.4bn in H1 2025: Report
Dubai's office market recorded a surge in sales values and transaction volumes in the first half of 2025, with investors increasingly favouring ESG-aligned assets and modern, high-quality office space. According to a new report by Cavendish Maxwell, office sales values rose 84 per cent year-on-year to AED 5.4 billion across 1,900 deals, marking the highest half-year activity since 2014. Transaction volumes were up 22 per cent compared with the same period last year, reflecting robust demand in both prime office and logistics segments. Dubai added 34,000 square metres of new office space between January and June, bringing the total gross leasable area to 9.32 million square metres. An additional 110,000 square metres is expected by the end of 2025, with 340,000 square metres forecast for 2026, the report said. By 2028, the total gross leasable area in Dubai's office market is projected to reach 10.85 million square metres. Vidhi Shah, Director and Head of Commercial Valuation at Cavendish Maxwell, said: 'Dubai's investment landscape continues to flourish, further cementing the emirate's status as the UAE's leading economic hub – and a global destination for business. In H1 this year, Dubai attracted more than 500 new FDI projects, securing over AED 11 billion in capital inflows, while the DIFC registered more than 1,080 new businesses – a rise of 32 per cent year-on-year.' 'With strong government backing and sustained investor confidence, Dubai's office market continues to deliver an outstanding performance, with yet more records for sales volumes and values. This momentum is expected to continue, with a wave of new supply further strengthening the market and offering buyers and renters more flexibility,' he added. Sales and rental growth Office sales prices rose 22.2 per cent year-on-year to AED 1,748 per square foot, while rents increased 26.4 per cent on average and by nearly 35 per cent in prime districts. Compared with the second half of 2024, sales prices rose almost 13 per cent, and rents by 10 per cent, reflecting a strong appetite for premium office space. Prime districts such as DIFC and Downtown Dubai recorded rental growth of 35 per cent and 33.5 per cent, while older hubs such as Bur Dubai, Deira and Healthcare City saw more modest increases of 3.8 per cent, 2.6 per cent and 2.2 per cent, respectively. Investors and occupiers are increasingly targeting A-grade buildings with modern amenities and ESG credentials. Off-plan market surges While ready office units accounted for 85 per cent of transactions, off-plan sales gained traction, rising almost 180 per cent year-on-year and 90 per cent compared with the second half of 2024. Rising demand for modern, innovation-led and ESG-aligned developments is driving the off-plan market. Business Bay retained its position as the top sales location, with 672 transactions, followed by Jumeirah Lakes Towers with 534 deals, Motor City with 216, Barsha Heights with 160, and Dubai Silicon Oasis with 77. Offices of 1,000 to 2,000 square feet represented 48 per cent of sales, units below 1,000 square feet made up 39 per cent, 2,000 to 5,000 square feet accounted for 12 per cent, and spaces above 5,000 square feet comprised 2 per cent. Dubai's office market currently offers 9.32 million square metres of gross leasable area, with 110,000 square metres due to come online by the end of 2025 and a further 340,000 square metres in 2026. Long-term forecasts indicate another 1 million square feet of office space will be delivered in 2027 and 2028, increasing total inventory to 10.85 million square metres. 'While the development pipeline appears robust, completion timelines may vary. Occupancy rates are likely to remain high in the short term, with most new supply expected between 2026 and 2028, when price pressures on sales and rentals may ease,' Shah said.
Zawya
16 hours ago
- Zawya
Dubai office sales values up 84% as transactions surge to a record AED5.4bln, says new Cavendish Maxwell report
34,000 sq metres of new space takes total GLA to 9.32 million sqm; another 450,000 sqm due to come to market by end 2026 Investors increasingly favouring ESG-aligned assets Dubai – Dubai's office market sales values have soared by 84% year-on-year, with AED5.4 billion worth of transactions across 1,900 deals, according to new insight and analysis by leading real estate advisory and property consultant, Cavendish Maxwell. Sales transactions were up 22% on the same period last year, amid unprecedented demand for commercial space – particularly in the prime office and logistics segments, according to Cavendish Maxwell's latest Dubai Office Market Report, covering H1 2025. Dubai delivered 34,000 square metres of new office space between January and June, with another 110,000 sqm estimated to come to the market by the end of 2025 – and an additional 340,000 sqm expected in 2026, by which time the total commercial space GLA is projected to reach 9.78 sqm, the report shows. Vidhi Shah, Director and Head of Commercial Valuation at Cavendish Maxwell, said: 'Dubai's investment landscape continues to flourish, further cementing the emirate's status as the UAE's leading economic hub – and a global destination for business. In H1 this year, Dubai attracted more than 500 new FDI projects, securing over AED11 billion in capital inflows, while the DIFC registered more than 1,080 new businesses – a rise of 32% year-on-year. 'With strong Government backing and sustained, solid investor confidence, Dubai's office market continues to deliver an outstanding performance, with yet more records for sales volumes and values. This strong momentum is expected to continue this year and beyond, with a wave of quality new supply further strengthening the market and offering buyers and renters more flexibility.' The Cavendish Maxwell report also shows that in H1: Office sales prices rose 22.2% year on year, to an average AED1,748 per square foot Ready offices accounted for nearly 85% of sales transactions, with off-plan sales gaining ground Business Bay remained the top area for sales, followed by Jumeirah Lakes Towers Office rents were up by an average 26.4% - and by almost 35% in prime areas Sales and rental price rises Year-on-year, office sales and rental prices rose by an average of 22.2% and 26.4% respectively, with sales prices reaching AED1,748 per sq ft and rental rates hitting AED166 per sq ft per annum. Compared to H2 2024, sales prices were up almost 13%, with rental rates rising 10%. With a healthy appetite among investors and occupiers, prices are expected to continue to rise. Rental rates in prime districts like DIFC and Downtown Dubai surged by almost 35% and 33.5% respectively, highlighting demand for quality space in Dubai's most sought-after business hubs. Some of the emirate's more mature, traditional trading centres such as Bur Dubai, Deira and Healthcare City saw only modest rises of 3.8%, 2.6% and 2.2% respectively – the result of older infrastructure, limited new supply and increasing investor preference for A-grade facilities, enhanced amenities and better access. Surge in off-plan demand While the ready office segment continues to dominate, accounting for almost 85% of transactions, investors are increasingly buying into the off-plan sector. With an increased market share, off-plans sales grew almost 180% compared to H1 last year and 90% against H2 2024. The surge in off-plan investment is fuelled by strong demand for upcoming modern, innovation-led and ESG-aligned space. In total, there were 1,900 ready and off-plan sales transactions worth AED5.4 billion in H1. The hottest sales locations Business Bay kept its number one position for transactions, with a total 672 ready and off-plan sales deals between January and June. In second place was Jumeirah Lakes Towers with 534 transactions, followed by Motor City (216), Barsha Heights (160) and Dubai Silicon Oasis (77). Offices spanning 1,000 to 2,000 sq ft accounted for almost half (48%) of all sales transactions, with areas of less than 1,000 sq ft taking a 39% share. 12% of investors secured spaces between 2,000 and 5,000 sq ft, with 2% taking 5,000 sq ft or more. Pipeline supply Dubai's office inventory currently stands are 9.32 million square metres of gross leasable space and is poised for a steady increase in new deliveries to the tune of 110,000 sqm between now and the end of year, and 340,000 sqm next year. Long term forecasts show that another 1 million sq ft is due to come online in 2027 and 2028, by which time Dubai's total GLA inventory could reach 10.85 sqm. Vidhi Shah said: 'While the development pipeline appears to be very robust, actual completion times may vary, meaning that occupancy rates are likely to remain high in the short term. The majority of upcoming supply is projected to hit the market between 2026 and 2028, when we can expect price pressure to ease on both sales and rentals.' Download the full Cavendish Maxwell Office Market Performance report here. -Ends- For media enquiries, please contact: Rebecca Rees at rebecca@ About Cavendish Maxwell Cavendish Maxwell is one of the Middle East's leading real estate advisory groups and property consultants, with offices in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Kuwait City and Muscat. The company is a member of the Royal Institution of Chartered Surveyors (RICS) and offers a full range of property-related services, including valuation, strategic advisory, research, project and building consultancy and investment and commercial agency expertise. With a team of experienced professionals and a commitment to delivering exceptional service, Cavendish Maxwell has established itself as a trusted advisor in the regional real estate market.
