Today's Edition
AMEINAH ALZEYOUDI (ABU DHABI)
Abu Dhabi’s property market has continued its impressive upward momentum in the first half of 2025, as detailed in Bayut’s Abu Dhabi Sales Market Report H1 2025. The report highlights notable gains across affordable, mid-tier, and luxury property segments, driven by strong investor confidence, lifestyle-oriented developments, and high rental yields.
According to Bayut report, affordable apartment prices rose by up to 7%, while affordable villas saw increases of up to 5% compared to H2 2024. In the mid-tier segment, apartment prices climbed by 2% to 11%, with Al Reem Island leading the way. Notably, mid-tier villas in Al Samha registered a significant 26.7% jump in price per square foot, the highest across all segments.
Luxury real estate also remained in high demand. The price of luxury apartments increased by up to 17%, particularly on Saadiyat Island and Yas Island. Luxury villa prices rose between 6% and 9%, with Yas Island dominating buyer interest. However, Al Jubail Island was the only area in the luxury category to experience a drop in villa prices, declining by 17.8%, likely due to shifting investor focus.
For buyers seeking affordable options, Al Reef emerged as the most popular area for both apartments and villas, supported by high returns on investment (ROI) and relatively modest price increases. Al Ghadeer followed closely, offering attractive pricing and strong yields.
In the mid-tier apartment segment, Al Reem Island stood out with a 10.7% price increase, driven by its central location and growing infrastructure. Masdar City and Baniyas also attracted investors with solid ROIs and moderate price appreciation. Meanwhile, Al Raha Gardens led the mid-tier villa segment, offering a strong 6.17% ROI and steady pricing growth.
Luxury buyers continued to favour Yas Island, Al Raha Beach, and Saadiyat Island. Apartments in Saadiyat saw the highest surge in per square foot pricing at 16.5%, while Yas Island apartments posted the highest ROI in the luxury category at 7.15%.
In terms of rental yields, Al Reef topped the list for both affordable apartments (9.33%) and villas (6.34%). Masdar City delivered the highest ROI for mid-tier apartments at 8.41%, while Al Raha Gardens led for mid-tier villas. Among luxury properties, Yas Island posted the best ROI across both apartments (7.15%) and villas (5.46%), thanks in part to renewed interest following the announcement of Disneyland Abu Dhabi.
Off-plan developments have also gained traction in H1 2025. In the affordable segment, Al Reeman 1 in Al Shamkha and Bloom Living in Zayed City stood out. Yas Bay led mid-tier apartment projects, while Nawayef Park Views and Saadiyat Cultural District were preferred luxury developments.
On the villa front, affordable buyers focused on Bloom Living and Al Reeman 2. Yas Acres remained a favourite in the mid-tier bracket, while Nawayef West and Saadiyat Lagoons continued to attract luxury investors.
