Abu Dhabi Property Market Sees Steady Growth in H1 2025 on Infrastructure Push
Economy

Abu Dhabi Property Market Sees Steady Growth in H1 2025 on Infrastructure Push

The Abu Dhabi property market witnessed steady growth in the first half of 2025, driven by infrastructure upgrades, international investment, and supporting policies. According to data from the Department of Municipalities and Transport, real estate sales totalled AED 45 billion, a 15% increase year on year. This includes both sales and mortgage transactions, indicating active participation from end users and investor participation.

Government efforts such as the Ghadan 21 program and infrastructure projects such as the Etihad Rail extension and Abu Dhabi Airport’s Midfield Terminal improve connectivity and liveability throughout the emirate. Upgrades to roads and community facilities are driving up home values.

Foreign investment continues to expand as ownership regulations are relaxed, with roughly 40% of transactions in H1 2025 involving overseas buyers. Investors from India, the United Kingdom, China, Russia, and Saudi Arabia have shown constant interest, drawn to Abu Dhabi’s stable economy, low income tax, and rental yields.

Luxury villas and waterfront apartments on the Saadiyat, Yas, and Al Reem islands are in strong demand, with average prices rising by 5% to 10%. Commercial leasing activity is recovering as business sentiment improves.