Abu Dhabi’s real estate market is off to a strong start in 2025, with impressive growth in property transactions. According to the latest report from the Abu Dhabi Real Estate Centre (ADREC), the total value of real estate transactions for the first quarter of 2025 reached AED 25.3 billion. This marks a significant 34.5% increase from the AED 18.82 billion recorded during the same period in 2024.
The surge in transactions reflects not only a thriving property market but also growing investor confidence in the Emirate. A total of 6,896 deals were completed in Q1 2025, underscoring the strong demand across Abu Dhabi’s diverse real estate sectors.
Saadiyat Island Leads the Surge
Saadiyat Island stood out as a major investment hotspot, with transactions amounting to AED 5.6 billion. The area’s combination of luxury, scenic beauty, and cultural amenities continues to make it one of the most sought-after destinations for both investors and homeowners.
Other key areas of note include:
- Yas Island: AED 3.6 billion in transactions
- Mohammed Bin Zayed City: AED 2.1 billion in transactions
- Al Reem Island & Al Hudayriat Island: Both areas exceeded AED 1 billion each
These figures highlight the increasing appeal of a range of property types in Abu Dhabi, from waterfront living on Saadiyat Island to urban developments on Al Reem Island.
Strong Growth in Sales and Mortgages
The breakdown of transaction types shows additional positive trends:
- Buy and Sell Transactions: AED 15.51 billion across 3,819 deals, reflecting a 26.7% increase in value and an 11% increase in volume compared to the previous year.
- Mortgage Transactions: Reaching AED 9.8 billion through 3,077 deals, marking a 49% year-on-year growth.
This growth signals strong activity in both the end-user market and the financing sector, with a healthy lending environment supporting continued real estate investment.
Boost in Foreign Direct Investment (FDI)
Foreign interest in Abu Dhabi’s property market continues to rise. In Q1 2025, 384 FDI transactions were completed, valued at AED 1.582 billion. Investors from 68 nationalities participated in these transactions, an increase from the 58 nationalities involved during the same period last year.
This surge in foreign interest underscores Abu Dhabi’s expanding appeal as a top-tier destination for global investors. Investor-friendly policies, strategic reforms, and a forward-thinking approach to real estate development are driving this growth.
Leadership Remarks
Engineer Rashed Al Omaira, Acting Director General of ADREC, commented on the outstanding performance:
“ADREC continues to advance a more efficient, competitive, and sustainable real estate ecosystem, driven by digital transformation, reliable data, and continuous collaboration with strategic partners. These results highlight the strength of Abu Dhabi’s property market and its enduring attractiveness as a regional and international hub for real estate investment.”
He further emphasized the Centre’s commitment to enhancing transparency, improving legislative frameworks, and leveraging digital services in line with Abu Dhabi’s long-term vision to build a resilient and sustainable property market.
About the Abu Dhabi Real Estate Centre (ADREC)
Launched in November 2023 by the Department of Municipalities and Transport, ADREC plays a pivotal role in shaping the future of the Emirate’s real estate sector. With a focus on four key pillars — Real Estate Strategy, Real Estate Promotion, Real Estate Regulation, and Real Estate Transactions Management — ADREC strives to create a seamless and sustainable property environment for all stakeholders.
By promoting innovation, regulatory efficiency, and collaboration, ADREC is helping elevate the real estate sector in Abu Dhabi to international standards, positioning the Emirate as a top investment destination globally.
Conclusion
The first quarter of 2025 has set a positive tone for the future of Abu Dhabi’s real estate market. With record-breaking transaction volumes, increasing foreign investments, and ADREC’s continued strategic improvements, Abu Dhabi’s property sector is poised for even greater achievements in the months to come.
