Rental Prices Rise, Home Prices Stable Amidst Limited Housing Supply

Abu Dhabi's property market continued its upward trajectory in Q2 2025, with capital values rising 2.2% quarter-on-quarter and 8.1% year-on-year. Apartments experienced the strongest annual growth in three years, with values up 5.9% YoY, while villas saw a 10.1% YoY increase. The average apartment price is Dh11,162 per sq m, and the average villa price is Dh8,557 per sq m. Saadiyat Island led annual price gains for both villas and apartments.

Rental values surged, with a 1.5% QoQ and 9.5% YoY increase. Apartment rents saw the most significant jump, up 2% QoQ and a record 12.5% YoY, while villa rents grew 7% YoY. Average asking apartment rents range from Dh65,000 for a studio to Dh183,000 for a three-bedroom unit. Gross rental yields remain strong at 8.1% overall, with 8.5% for apartments and 7% for villas.

Limited new supply is fueling the market's growth, with only 7.1% of the 2025 pipeline delivered in H1. However, 33,000 new units are expected by 2030, with several projects underway, including Wadeem by Modon and Seamont Autograph Residences. Off-plan sales remain robust, with volume up 53.1% QoQ, and ready home transactions also increased significantly. Mortgage transactions totaled Dh8.3 billion, slightly ahead of cash transactions at Dh8.2 billion.

The market is currently tight, but the upcoming developments and steady price growth suggest a more balanced market is on the horizon. Staying informed about new projects and market trends is crucial for renters, buyers, and investors alike.