Abu Dhabi attracted 384 FDI transactions valued at AED1.582 billion from investors from 68 nationalities.
Abu Dhabi Property Sector Surges with AED25.3 Billion in Q1 2025 Transactions
The Abu Dhabi Real Estate Center has unveiled an impressive 34.5% growth in transaction value during the first quarter of 2025, reaching AED25.3 billion ($6.89 billion) across 6,896 property deals. This marks a substantial rise from the AED18.82 billion recorded from 5,773 transactions in the corresponding period of 2024.
Breaking it down, purchase and sale transactions accounted for AED15.51 billion through 3,819 completed deals—translating to a 26.7% increase in value and an 11% uptick in transaction volume year-over-year. At the same time, mortgage-backed transactions reached AED9.8 billion across 3,077 deals, posting a robust 49% annual gain.
Among the most active zones, Saadiyat Island led the way with real estate transactions worth AED5.6 billion. Yas Island followed closely with AED3.6 billion, while Mohammed Bin Zayed City secured AED2.1 billion in activity. Additionally, Al Reem Island and Al Hudayriyat Island each surpassed the AED1 billion mark.
Foreign Direct Investment (FDI) Sees Continued Momentum
The report also spotlighted sustained growth in foreign direct investment (FDI) within Abu Dhabi’s property market. A total of 384 deals were concluded by investors from 68 countries, accumulating AED1.582 billion—an increase from 58 nationalities participating during the same timeframe in 2024. This positive trend reflects the city’s strengthening global reputation, supported by progressive regulations and proactive government strategies.
“These performance figures reaffirm the resilience and appeal of Abu Dhabi’s real estate sector. Growth in both transactional value and investor participation underscores the trust placed in our regulatory frameworks,” said Engineer Rashed Al Omaira, Acting Director-General of the Abu Dhabi Real Estate Center (ADREC).
Real Estate Momentum Continues into 2025
The upward trajectory of Abu Dhabi’s property landscape has confidently continued into 2025. The previous year, 2024, closed with 28,249 real estate transactions, showing a 24.2% increase year-over-year and reaching an overall transaction value of AED96.2 billion.
Moreover, the sector attracted AED7.86 billion in FDI from over 2,300 international investors spanning 105 countries. Abu Dhabi’s appeal broadened further through the launch of 38 new off-plan developments and the delivery of 12 landmark projects—enhancing the emirate’s property offerings across multiple price brackets with diverse and iconic architecture.
“Abu Dhabi’s 2025 property scene builds upon last year’s solid momentum, continuing to attract global attention. The combination of sovereign investments and entrepreneurial energy is reigniting investor interest,” commented Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, also serving on the board of the Dubai Chamber of Digital Economy.
“With the debut of over 30 new projects, AED7.8 billion in foreign investments in 2024, and rising transaction volumes, the emirate is carving a place as a forward-thinking, strategic destination for real estate investment,” he added.
ROI Trends Reflect Sector Strength
Bayut’s Q1 2025 report further emphasized that Abu Dhabi remains a lucrative location for return on investment (ROI) across property categories. Affordable apartment communities such as Al Reef and Al Ghadeer delivered strong returns of 8.38% and 9.95%, respectively.
Mid-range areas including Al Reem Island, Baniyas, and Masdar City saw ROI figures between 5.57% and 7.60%. Meanwhile, premium apartment developments on Al Raha Beach, Yas Island, and Saadiyat Island yielded returns from 3.88% to 7.37%.
For villas, Al Reef stood out in the affordable category with a 6.45% ROI. Mid-tier villa communities like Al Raha Gardens and Al Samha offered returns between 5% and 7%, while luxury villa zones such as Yas Island, Saadiyat Island, and Al Raha Beach continued to deliver yields above 4.55%.
