Abu Dhabi’s real estate market saw unprecedented growth in 2024, with residential rents up 20 per cent, sales prices climbing 11 per cent, and prime office occupancy reaching 95 per cent, as tight supply fuelled competition and pushed prices higher.
The Abu Dhabi Rental Index, launched in 2024, aims to bring greater transparency to pricing and lease negotiations, while new developments are expected to ease shortages in the coming years.
Despite a wave of new supply expected in 2025, demand remains strong, driven by economic growth, foreign investment, and government-backed initiatives.
Abu Dhabi real estate boom
As part of the UAE’s Vision 2030, expansion across finance, technology, and tourism is accelerating job creation, further increasing real estate demand and reinforcing Abu Dhabi’s position as a key global investment hub.
Real estate firm Cushman & Wakefield Core has revealed insights into the Abu Dhabi real estate market. Its key findings include:
- Limited new supply: Only 3,004 residential units delivered in 2024, 46 per cent below forecasts
- Prices climb: Sales prices rose 11 per cent year-on-year, with villas leading growth
- Rents spike: Residential rents jumped 20 per cent, with Saadiyat Island apartment rents up 31 per cent
- Secondary market thrives: Transactions increased by 54 per cent in 2024 as buyers favoured ready-to-move-in homes
- Housing demand far exceeded supply in 2024, pushing both sales and rents to new highs. Limited new deliveries drove an 11 per cent jump in prices, with villas seeing the strongest appreciation.
Khalifa City prices surged 30 per cent, reflecting the growing appeal of suburban communities.
Rental markets tightened, especially in premium locations. Saadiyat Island saw rents rise 31 per cent, while Reem Island and Al Raha Beach increased by 24 per cent and 21 per cent, respectively.
As central areas grow more expensive, demand is shifting toward suburban and mid-market neighbourhoods.
In 2025, the Emirate will see 8,500 new homes delivered, almost triple the 2024 figure, but demand is expected to remain strong, keeping pressure on prices.
Prathyusha Gurrapu, Head of Research and Consultancy at Cushman & Wakefield Core, said: “Supply struggled to keep up with demand in 2024, driving sharp price increases. While new supply in 2025 is expected to help, demand remains high, putting continued pressure on rents and sales prices.”
Abu Dhabi’s office sector, meanwhile, had one of its strongest years on record. Prime offices were nearly full, with citywide occupancy reaching 89 per cent.
Limited availability fuelled an 11 per cent jump in rents, with most new developments already pre-leased. Although 2025 will see 104,000sq m of office space come to market, most will be pre-leased.
David Short, Head of Abu Dhabi at Cushman & Wakefield Core, said: “Office space is in short supply, especially in ADGM and Reem Island. Companies are acting fast to secure space, while others are looking at newer districts or maximising their current offices.”
Abu Dhabi 2025 real estate forecast
New supply will provide some relief, but Abu Dhabi’s real estate market remains competitive.
The Abu Dhabi Rental Index is expected to help create a more transparent pricing structure, while freehold ownership expansions will open new investment opportunities.
Prathyusha Gurrapu said: “Abu Dhabi’s real estate market is set for continued growth in 2025. The residential sector will see a wave of new supply in key investment zones, helping to create a more balanced market.
“Meanwhile, office space remains in high demand, with Prime and Grade A segments nearing full occupancy. The city’s push for economic diversification, particularly in finance and technology, along with major infrastructure upgrades and strategic government initiatives, will keep attracting residents, businesses, and investors”.
