Abu Dhabi, UAE – Abu Dhabi’s residential property market delivered its strongest year on record in 2025, supported by rising transaction volumes, sustained price growth and growing demand across both mainstream and prime segments, according to Savills Middle East’s Abu Dhabi Residential Market Report 2025.

Residential transactions exceeded 20,000 during the year, representing a 58% year-on-year increase and marking the highest annual activity level recorded in the emirate. Transaction momentum strengthened throughout the year, with Q4 activity reaching an all-time quarterly peak of over 7,500 transactions.

Apartments continued to dominate market activity, accounting for 67% of all residential transactions in 2025. However, villa and townhouse demand accelerated sharply in the final quarter of the year, with nearly 3,500 transactions recorded in Q4 alone, highlighting pent-up demand for low-density, family-oriented housing.

Off-plan sales remained the primary driver of activity, accounting for 70% of all transactions across 2025 and rising to 80% in Q4. Strong absorption was underpinned by several high-profile launches, including branded residences and large-scale masterplanned communities.

Market Highlights

Key themes explored in the 2025 report include:

  • Record transaction growth: Annual residential transactions exceeded 20,000, driven by population growth, investor confidence and limited completed stock.
  • Rising capital values: Average residential sales rates increased 15% year-on-year to AED 17,145 per sq m, with price growth recorded across all key districts.
  • Off-plan dominance: New launches accounted for the majority of activity, reflecting demand for modern product, lifestyle-led communities and attractive payment structures.
  • Emergence of prime and super-prime: Nearly 700 transactions above AED 10 million were recorded in 2025, a 47% year-on-year increase, driven by branded residences and premium villa communities.

The prime and super-prime segment gained further momentum in 2025, supported by the launch of several branded residential developments across Saadiyat Island, Yas Island and Masnouah Island. Villas and townhouses accounted for approximately 70% of transactions above AED 10 million, underscoring continued demand for space and privacy at the top end of the market.

Outlook for 2026

Looking ahead, Savills expects Abu Dhabi’s residential market to remain supported by supply constraints, limited near-term handovers and continued economic and population growth. Ongoing investment in cultural, leisure and education infrastructure, alongside regulatory initiatives aimed at improving transparency, is expected to further strengthen market confidence.

Ali Ishaq, Head of Residential Agency – Abu Dhabi at Savills Middle East, said:

“Abu Dhabi’s residential market performance in 2025 reflects a broader evolution in how the city is positioning itself globally. Demand is increasingly being shaped by the depth of Abu Dhabi’s cultural offering on Saadiyat Island, alongside the growth of key commercial and lifestyle hubs such as Yas Island, as well as the ADGM International Financial Centre on Al Maryah Island and Reem Island.

This combination of culture, economic infrastructure and high-quality residential development is attracting a more diverse mix of end-users and international investors seeking long-term stability rather than short-term opportunity. As a result, we are seeing sustained momentum across both prime and mainstream segments of the market.”

Rachael Kennerley, Director of Research at Savills Middle East, added:

“2025 has seen strong performance for Abu Dhabi’s residential market, mirroring the city’s ongoing evolution. Entertainment and education announcements are increasingly making Abu Dhabi an attractive proposition for family living on a global level, alongside an evolving product mix from developers bringing large-scale villa communities, branded residences, and high-quality apartment stock”

Savills expects 2026 to be characterised by continued differentiation across locations and asset types, with well-located, high-quality developments and prime residential stock remaining the most resilient as the market continues to mature.

To read the full report, visit https://dubai.savills.ae/research_articles/244449/386819-0

About Savills Middle East:

Savills plc is a global real estate services provider listed on the London Stock Exchange. With a presence in the Middle East for over 40 years, Savills offers an extensive range of specialist advisory, management and transactional services across the United Arab Emirates, Oman, Bahrain, Egypt, and Saudi Arabia. Expertise includes property management, residential and commercial agency services, property and business assets valuation, and investment and development advisory. Originally founded in the UK in 1855, Savills has an international network of over 700 offices and associates employing over 40,000 people across the Americas, UK, Europe, Asia Pacific, Africa, and the Middle East.