In the first half of 2025, the demand for ready-to-move-in and off-plan properties drove a spike in transaction values. Price points in important areas have increased due to the advent of internet platforms like Madhmoun and high-profile projects like the planned Disneyland on Yas Island.
Prices in the ready-to-move-in real estate market increased overall. The cost of affordable villas rose by up to 3.38 percent, while the cost of affordable apartments rose by 6.44 percent. Villas and mid-range apartments saw increases of 4.84 and 4.91 percent, respectively. The strong appeal of waterfront and island communities like Yas Island, Saadiyat Island, and Al Jubail Island is reflected in the 8.95% increase in luxury apartment prices and the 4.92 percent increase in rates for high-end villas.
Villas in Al Reef topped the affordable segment with a return on investment (ROI) of 6.18 per cent. Notable performances were also recorded by Hydra Village, Al Shamkha, Khalifa City, and Zayed City. While the luxury market continued to be concentrated on prestigious beach locations, Al Raha Gardens and Al Samha gained popularity among buyers in the mid-tier category. Luxury residences on Al Maryah Island had the highest return on investment (ROI) at 8.48%, followed by Yas Island and Al Raha Beach.
In H1 2025, Abu Dhabi’s off-plan market saw a further uptick in demand and inventories at all price points. Projects at Al Shamkha and Zayed City, such as Al Reeman 1 and Granada at Bloom Living, were particularly noteworthy in the inexpensive category. With apartments averaging Dh2.11 million and Dh1.96 million, respectively, luxury developments like Gardenia Bay and Yas Bay on Yas Island attracted a lot of buyers. The average price in Saadiyat Cultural District was Dh4.66 million, which was considerably higher.
Along with neighborhoods in Masdar City and Shakhbout City, mid-tier off-plan residences on Al Reem Island, including Vista 3, Reem Hills, and Renad Tower, attracted a lot of interest. While luxury villa investors focused on Yas Riva and projects in Saadiyat Island and Al Jurf, mid-tier demand for villas was dominated by Reem Hills and Royal Park in Masdar City.
Overall returns demonstrated the capital’s attractiveness as an investment. Al Reef’s reasonably priced apartments yielded return on investment (ROI) of 9.46%, while Al Ghadeer came in second with 8.42%. On Al Reem Island and Masdar City, mid-tier apartment returns peaked at 7.33% and 7.20%, respectively. Solid rental yields were provided by villas in Saadiyat Island, Al Raha Gardens, and Hydra Village; the latter yielded a top-tier return on investment of 5.56%.
Bayut’s H1 2025 data supports Dubizzle’s findings by confirming a parallel trend of rising demand, particularly in off-plan developments. Budget-conscious purchasers continued to select affordable areas like Al Reef, Al Ghadeer, and Khalifa City, while mid-segment investors were drawn to Al Reem Island and Masdar City. The excitement surrounding Disneyland and the growing waterfront amenities made Yas Island and Saadiyat Island stand out to luxury buyers.
Additionally, according to Bayut’s research, mid-tier apartments saw an appreciation of 6–11%, while listing prices for cheap flats rose by up to 7%. A sharp 26.7% increase in mid-tier villas in Al Samha suggests that demand for family residences is growing. Although some villa communities, such as Al Jubail Island, saw a price correction of 17.8% as a result of changing buyer focus, luxury apartment prices in Yas and Saadiyat Islands increased by as much as 17%.
The market’s robust digital transformation has also played a role in improving buyer confidence. Haider Ali Khan, CEO of dubizzle and Bayut, and Board Member of the Dubai Chamber of Digital Economy, said: “Abu Dhabi’s real estate landscape is evolving rapidly. With over 9.3 million visits recorded on Bayut’s Abu Dhabi listings alone in six months, demand is clearly on the rise. Smart platforms like Madhmoun and landmark projects are reshaping the capital into a transparent, future-ready market.”
