Tuesday, 9 September 2025
Abu Dhabi’s real estate market experienced significant growth in 2024, with rising demand outpacing limited supply across both residential and office sectors. Residential rents increased by 20% year-on-year, while sales prices rose 11%, led by strong interest in villas and suburban communities. At the same time, prime office spaces reached 95% occupancy, with overall office demand pushing rents up by 11%.
The sharp growth in both sectors reflects a broader economic expansion in Abu Dhabi, supported by government-led initiatives, rising foreign investment, and ongoing efforts under the UAE’s Vision 2030 to diversify the economy. Growth in sectors such as finance, technology, and tourism has led to increased job creation, further boosting real estate demand.
Residential supply remained limited in 2024, with just over 3,000 new units delivered—46% below forecasted levels. This shortage pushed both prices and rents higher. Saadiyat Island saw the steepest rent increases, with apartment rents rising by 31%, while Reem Island and Al Raha Beach saw gains of 24% and 21%, respectively. Secondary market transactions rose by 54% as buyers increasingly sought ready-to-occupy homes.
Khalifa City stood out among villa communities, with average prices rising by 30%, reflecting growing demand for suburban living. The shift from central to mid-market and outer districts has become more pronounced as central areas grow less affordable.
In 2025, residential supply is expected to increase significantly, with 8,500 new units planned—nearly three times the 2024 total. However, demand remains high, and upward pressure on pricing is likely to persist.
Abu Dhabi’s office market also recorded one of its strongest years. Citywide office occupancy averaged 89%, with prime buildings nearing full capacity. Demand was driven in large part by the banking and finance sector, which accounted for nearly a quarter of all office space inquiries. Most new office projects expected in 2025—totalling around 104,000 square meters—are already pre-leased, suggesting continued tight conditions.
To improve market transparency and stability, the Abu Dhabi Rental Index was launched in 2024. The index aims to guide lease negotiations by providing clearer benchmarks on rental pricing. Meanwhile, ongoing reforms around freehold ownership are expected to open more investment opportunities for international buyers.
While new supply may ease some pressure in the short term, the overall outlook for Abu Dhabi’s real estate market remains strong, supported by steady economic growth and continued investor interest.
Source: Cushman & Wakefield UAE
