Abu Dhabi Sees Home Price Growth Despite Limited New Supply

Abu Dhabi’s residential property market is holding steady in 2025, even as fewer new developments launch, according to the latest Residential Market in Minutes report by Savills.

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Fewer launches mean more competition for ready-to-move-in homes, creating a supply crunch that’s pushing up sale prices. And while transaction volumes dropped 39% in Q1 compared to the same period last year, prices are still going up, signalling strong demand from both investors and end-users.

Fewer Homes, Higher Prices

Only 2,800 new homes were delivered in Q1, with just 10 new projects launched. That limited supply has led to a 13.4% jump in average sale prices year-on-year, from AED 14,100 to AED 16,200 per square metre.

So even though there’s less movement in the market, the homes that are available, especially the ready ones, are gaining serious value.

Abu Dhabi Is a Long-Term Bet

There’s more driving this trend than just supply and demand. Abu Dhabi has once again been ranked the safest city in the world for the ninth year running, reinforcing its reputation as a stable place to live and invest.

On top of that, strategic developments in culture, education, and lifestyle, like the Saadiyat Cultural District and the upcoming Harrow International School, are attracting families, institutions, and long-term investors.

Strong Demand for Ready Homes

Buyers clearly prefer ready units, especially in prime communities. In Q1 2025, 68% of all home sales were ready properties, up from 44% a year ago.

Villas are doing particularly well:

• Al Reef: Up 7%
• Yas Island: Up 10%
• Saadiyat Island: Up 26%

These jumps show that lifestyle-driven neighbourhoods continue to pull in buyers looking for long-term value.

Apartments tell a similar story. Saadiyat Island led the pack with a 22% rise in apartment values, while Al Raha Beach, Reem Island, and Yas Island stayed steady. Apartment sales made up 63% of all transactions in Q1, mostly involving completed units.

Expats Still Buying In

Expat families are a big part of the ongoing interest. Long-term visa options, a growing private education sector, and lifestyle attractions like the upcoming Disney theme park on Yas Island are all keeping demand high.

International developers entering Abu Dhabi’s market are also expected to boost future supply and draw in even more investors.

What’s Next?

Savills expects the ready-home segment to stay active in the coming months, especially in well-connected, master-planned communities.

For investors and buyers looking at the UAE’s property market, Abu Dhabi’s low supply and high demand make it a strong contender for capital growth in the medium term.