Residential property prices in Abu Dhabi rose 17.3% year-on-year in the second quarter of 2025, with average values reaching Dh1,230 per square foot, according to Knight Frank’s latest market review.
The apartment segment saw a quarterly increase of 6.8%, pushing annual growth to 17.3% and taking average values to Dh1,296 per square foot. Villa prices rose 3.4% over the quarter to Dh1,103 per square foot, marking a 42.3% increase since Q1 2020 and surpassing their 2014 peak by 7%.
Price growth was concentrated in high-end areas. Al Raha Beach led annual apartment growth with an 11% rise, while Saadiyat Island topped villa performance with a 28% increase. Yas Island villa prices grew 22% in the first half of the year.
Transaction volume in H1 2025 reached Dh9 billion, 36% lower than H1 2024. Despite the decline, transactions over Dh10 million accounted for 25% of the total market value, a record share, compared to just 7% in 2019. Knight Frank recorded 141 luxury home sales above Dh10 million, matching the previous year and up 41% from 2023.
Only 890 new units were delivered in H1 2025. Around 33,000 more are under construction and scheduled for delivery by 2029, with apartments making up 62% of that pipeline.
Knight Frank noted that Abu Dhabi prices remain around 30% lower than Dubai, drawing both local and international buyers seeking lower entry points. The consultancy reported rising interest from high-net-worth individuals, with 19% of surveyed respondents indicating plans to buy a home in the capital in 2025, up from 14% the year before.
Demand was strongest among those with a net worth between $30 million and $50 million, with 75% showing interest in buying. Among those worth over $50 million, 65% expressed intent to purchase.
