The residential sector in Abu Dhabi experienced substantial price increases in both sales and rentals in 2024. According to the Cushman report, city-wide sales prices rose by 11% year-on-year, with villa prices leading the charge, particularly in suburban areas such as Khalifa City, which saw a staggering 30% increase. The appeal of high-end properties was evident in Saadiyat Island, where apartment prices surged by 28%.
The secondary market played a dominant role in transaction volumes, recording a 54% increase compared to 2023. With fewer off-plan project launches in 2024, more buyers turned to ready-to-move-in homes, leading to heightened competition and higher prices in the resale segment, the report said. Aldar Properties maintained its position as the market leader, commanding 45% of secondary sales and 48% of off-plan transactions.
Rental growth in the emirate reached record-breaking levels, with a 20% year-on-year (YoY) increase in residential rents, the report revealed. Apartments saw a sharper rise at 22%, while villa rents climbed by 9%. Saadiyat Island emerged as the most sought-after location, witnessing a remarkable 31% increase in apartment rents, followed by Reem Island at 24%.
The report revealed that only 3,004 residential units were delivered in 2024, leading to demand outpacing supply. “Supply struggled to keep up with demand in 2024, driving sharp price increases,” said Prathyusha Gurrapu, Head of Research & Consultancy at Cushman & Wakefield Core. “While new supply in 2025 is expected to help, demand remains high, putting continued pressure on rents and sales prices.”
Looking ahead, 2025 is set to bring a significant increase in supply, with an estimated 8,500 residential units expected to be delivered. Key investment zones such as Yas Island, Reem Island, and Al Maryah Island will see the highest concentrations of new properties.
“Despite a wave of new supply expected in 2025, demand remains strong, driven by economic growth, foreign investment, and government-backed initiatives,” the report said.
Abu Dhabi’s office market is witnessing an unprecedented surge in demand, particularly for Grade A office spaces, which have reached an occupancy rate of 95%. “With city-wide occupancy levels standing at 89%, businesses seeking prime office locations are facing increasingly limited options, leading to an 11% YoY rise in rental prices,” the report said.
The financial sector remains the leading driver of office demand, accounting for 24% of all enquiries, the report revealed. The oil and gas sector follows closely behind, contributing 19% of total demand, while the technology and business services sectors also saw growing interest in 2024.
With ADGM reaching full capacity, demand is shifting towards Reem Island, which now falls under ADGM’s jurisdiction. This area is fast becoming a preferred alternative for companies seeking premium office space at more affordable rates compared to Al Maryah Island.
“Office space is in short supply, especially in ADGM and Reem Island,” said David Short, Head of Abu Dhabi at Cushman & Wakefield Core. “Companies are acting fast to secure space, while others are looking at newer districts or maximising their current offices.”
“The market’s demand-supply gap remains stark, with new projects pre-leased ahead of completion,” the report said. In 2025, approximately 104,000 square metres of new office space is expected to enter the market, with Masdar City and Al Reem Island emerging as key locations for new Grade A office supply, the report said.
Notable upcoming projects include Masdar City Square, which will deliver 48,000 square metres, and The Link in Masdar City, adding 16,700 square metres of premium office space.
The outlook for Abu Dhabi’s property market remains strong, with economic diversification, infrastructure developments, and pro-investment policies supporting sustained demand. “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,” said Prathyusha Gurrapu.
