The Abu Dhabi property market concluded FY 2025 on a strong footing, building on sustained year-on-year growth, according to dubizzle, the UAE’s leading classified platform.

The ready property segment in Abu Dhabi continued to gain traction, due to strong buyer activity across established and developing communities, stated the firm in its analysis of the market’s growth and direction.

Investors seeking luxury apartments demonstrated strong interest in Yas Island, Saadiyat Island and Al Raha Beach. The average price per square foot in Yas Island recorded a notable hike of 17.69%.

Al Reem Island, Masdar City and Baniyas led the mid-tier apartment segment. Al Reef, Al Ghadeer and Al Shamkha remained the most sought-after neighbourhoods for buying affordable apartments in the capital. Securing the top spot, Al Reef recorded a 12.67% increase in the average price per square foot for apartments.

Abu Dhabi’s pristine island communities, Yas Island, Saadiyat Island and Al Jubail Island, garnered the attention of luxury villa investors, said the report. 

Al Reem Island, Al Raha Gardens and Al Samha drew the interest of investors seeking mid-range villas. In 2025, the average price of villas in Al Reem Island rose to AED 608.7k, it added.

Al Reef, Al Shamkha and Zayed City, the emerging communities on the outskirts, remained popular for offering affordable villas.

Al Reef recorded the highest ROI (9.35%) across all apartment tiers, while Masdar City had the highest ROI (8.98%) for villas across all budget categories.

Rental Trends: Top neighbourhoods across different market tiers

According to dubizzle’s yearly insights, Abu Dhabi’s rental market sustained growth in 2025, driven by rising demand for rentals in the neighbourhoods across the capital.

Al Raha Beach, Corniche Area and Yas Island remained the top choices for luxury apartment rentals. Al Reem Island, Al Muroor and Al Khalidiyah captured the highest interest for mid-tier rental apartments. After the upticks in all three neighbourhoods, the yearly rent reached AED 119k, AED 54k and AED 96k, respectively, it stated.

Individuals seeking luxury villas for rent in Abu Dhabi were drawn towards Yas Island, Saadiyat Island and Al Bateen. For mid-tier rental villas, Shakhbout City, Al Samha and Al Raha Gardens remained the top choices, with the average annual rent in Al Samha rising to AED 140k.

Khalifa City and Al Nahyan stood out for witnessing the highest demand for both affordable rental apartments and villas.

Off-Plan Segment: Diverse inventory and rising buyer demand

Abu Dhabi’s off-plan property segment remained a key growth driver in 2025, with a steady supply of new projects catering to rising investor demand for long-term growth prospects.

Gardenia Bay in Yas Island remained the most sought-after luxury apartment project in Abu Dhabi's off-plan market. Manarat Living in Saadiyat Island and Yas Island’s Yas Bay also attracted significant attention from luxury apartment buyers.

Reem Hills in Al Reem Island led the mid-tier segment for off-plan apartments, followed by Royal Park in Masdar City. Reeman Living in Al Shamkha, Granada in Zayed City and Nawayef Park Views in Al Hudayriat Island emerged as the top choices for buying affordable off-plan apartments.

Commenting on the latest market trends, the CEO of Bayut & dubizzle and CEO of Dubizzle Group Mena, Haider Ali Khan, said: "Abu Dhabi’s real estate market grew at a strong pace in 2025, with transaction volumes rising sharply and total sales crossing AED164 billion. This is a clear marker of the growing confidence in the market, supported by major developments and continued government focus on housing, infrastructure and PropTech adoption.

"As activity scales, access to clear, reliable data becomes essential. At dubizzle, we focus on using technology to improve transparency and make the market easier to navigate for buyers, investors and developers. Abu Dhabi’s shift towards a more digitally transparent, investor-friendly environment is well underway, and it’s encouraging to see that progress firsthand," he added.-TradeArabia News Service