Property Prices Up in Abu Dhabi Despite Fewer Sales
Abu Dhabi’s property market is off to a strong start in 2025. According to the latest report from ValuStrat, residential property prices rose 7.2% year-on-year in Q1, the highest capital gains in the past three years. This steady growth shows that Abu Dhabi continues to be one of the UAE’s most promising real estate markets.
At Property Shop Investment (PSI), we believe this is the kind of data homebuyers and investors need to make smart decisions. Here’s what’s happening in the market — and why it matters.
Key Facts at a Glance
- Overall Property Prices: Up 7.2% annually
- Villa Prices: Rose 9.7% YoY — outperforming apartments
- Apartment Prices: Up 4.5% YoY
- Rental Market: Rents increased 9% YoY
- Occupancy Rate: 88.1% average for residential properties
- Gross Yields: 7.8% on average, with apartments reaching 8.3%
Top Performing Areas for Villas:
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- Saadiyat Island (+21.2%)
- Al Raha (+8.2%)
- Mohammed Bin Zayed City (+4.7%)
Top Areas for Apartment Gains:
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- Al Reef (+7.5%)
- Saadiyat Island (+6.2%)
- Al Muneera Island (+5.7%)
Rental Market Is Strong Too
The rental market is also heating up:
- Apartment Rents: Rose 11.6% YoY
- Villa Rents: Increased 6.3% YoY
- Average Occupancy: 88.1%
- Average Gross Yield for Apartments: 8.3% — great for rental investors
High rental yields and growing demand make Abu Dhabi a top spot for buy-to-let investors.
Why This Is a Good Time to Invest or Move to Abu Dhabi
Here are a few reasons why 2025 is a smart time to invest or relocate:
- High Capital Growth: Property values are steadily increasing, especially in prime areas
- Strong Rental Returns: High occupancy and rising rents boost ROI
- Limited Supply = More Demand: New homes are being released slowly, pushing values up
- Growing Economy: Abu Dhabi’s non-oil sectors are booming – especially tourism, trade, and technology
- Investor Confidence: Despite global uncertainty, the market here remains stable and attractive
PSI’s Take
At Property Shop Investment (PSI), we track the market closely to guide our clients toward smart property choices. Whether you’re a first-time buyer, a seasoned investor, or simply looking for a better place to live, this is a market worth watching — and acting on.
Our team can help you explore high-potential areas like Saadiyat Island, Al Reef, and Al Raha, or find rental properties that offer strong returns.
