Record-Breaking Transactions and Growth
Abu Dhabi’s real estate market has posted a remarkable expansion in 2025, with total transaction values nearly doubling in the first nine months to AED94 billion ($25.6 billion), according to official data released by the Abu Dhabi Real Estate Centre (Adrec). The sector saw a 43 percent year-on-year rise, highlighting strong investor confidence and a rapid pace of development across the emirate.
The volume of deals climbed to 29,400, reflecting increased market activity compared to the same period last year. Of these, AED62 billion was generated through sales and purchases spanning 16,887 transactions. Mortgage activity also remained robust, accounting for AED32 billion via 12,666 deals.
Foreign Direct Investment Fuels Market
Foreign direct investment (FDI) by individuals reached AED6 billion by the end of the third quarter, showing a 35 percent annual increase and underlining Abu Dhabi’s growing attraction for international buyers. Investors from 97 nationalities contributed to real estate growth, with especially strong demand from Russia, China, the UK, France, Kazakhstan, and the US.
The majority of foreign investment was directed toward designated investment zones, representing 74 percent of total real estate transactions. These zones recorded AED35 billion in deals, marking a 66 percent year-on-year increase from AED21 billion.
Development Projects and Market Fundamentals
The emirate registered 40 new real estate development projects within the first nine months of 2025, signalling the sector’s vibrancy and readiness for future growth. Abu Dhabi’s market fundamentals remain solid, with government officials highlighting the maturity of local and international investors and the sector’s capacity for sustainable expansion.
Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Abu Dhabi’s crown prince, recently announced a strategic plan to invest AED42 billion in development projects designed to enhance the quality of life for residents. These announcements, combined with continued investment in new housing, reinforce the emirate’s commitment to advancing its real estate infrastructure and community facilities.
Sector Contribution and Economic Impact
Real estate and construction activities made up 24 percent of Abu Dhabi’s non-oil GDP during the first half of 2025, demonstrating the significance of these industries to overall economic resilience. The real estate sector alone contributed AED22 billion to non-oil GDP, a 9 percent increase from AED20 billion a year earlier. Meanwhile, construction value rose by 10 percent to AED58 billion, further supporting economic diversification efforts.
Government Commitment and Budget Allocation
In July, the UAE government announced a federal budget allocation of AED900 billion for 2027-2029, with significant support earmarked for real estate and infrastructure projects in Abu Dhabi. Policymakers are continuing to prioritize development that meets both local needs and investor expectations, securing Abu Dhabi’s status as a major regional hub for real estate investment.
Key Market Observations
- Total transaction value reached AED94 billion in the first nine months.
- Foreign direct investment by individuals climbed to AED6 billion, up 35 percent.
- Investment zone transactions rose 66 percent, amounting to AED35 billion.
- Real estate and construction accounted for nearly a quarter of non-oil GDP.
- Strong demand from global investors, particularly from Russia, China, the UK, France, Kazakhstan, and the US.
- 40 new development projects registered in nine months.
Abu Dhabi’s real estate sector has exhibited robust growth through 2025, propelled by rising foreign investment, a surge in development projects, and a solid base of sales and mortgage transactions. With the emirate nurturing investor confidence and prioritizing large-scale infrastructure spending, Abu Dhabi is set to maintain its upward trajectory, marking itself as a leading destination for real estate investment and development in the region.
