UAE real estate market: Abu Dhabi sees 40% growth in first half of 2025

The UAE’s property market continues to prove its resilience in 2025, driven by steady economic growth, long-term government vision, and strong investor appetite. Buyer interest in new developments has risen by nearly a third every quarter between mid-2024 and mid-2025. While Dubai remains dominant, Abu Dhabi is gaining ground, accounting for about five per cent of overall demand. What this means is that the UAE is no longer viewed as a single-city story, but as a broader market where multiple emirates bring competitive advantage.

Speaking to Gulf News; On the sidelines of the 14th International Real Estate and Investment Exhibition (IREIS 2025) at the Abu Dhabi National Exhibition Centre (ADNEC), Tatiana Tonu, CEO of Object1 said:

"Abu Dhabi’s real estate market has seen remarkable momentum in 2025. Property transactions in the first half of the year exceeded AED 51 billion, representing nearly 40% growth compared to last year. More than 85 nationalities have invested in the capital, drawn by its mix of high-end developments, a safe lifestyle, and growing international prestige. Al Reem Island continues to lead the residential market, boosted by the Abu Dhabi Global Market expansion, which has attracted more than 1,100 new businesses and a wave of high-earning professionals seeking homes nearby."

Regarding Dubai real estate, She added "Dubai, meanwhile, continues its transformation from a city of renters to a city of owners. Sales transactions hit $17.3 billion in July 2025 alone, with off-plan projects driving much of the demand. New master-planned communities in areas like Dubai South and Dubailand are broadening the city’s housing map, offering more balanced supply and stabilising rental prices. DLD’s First-time Homeowner Initiative is also making ownership a practical choice for long-term residents.

Affordable and mid-tier demand is equally strong, with buyers gravitating towards Al Reef and Al Ghadeer in Abu Dhabi, and Jumeirah Village Circle and Dubai Silicon Oasis in Dubai, areas that continue to deliver steady price appreciation and healthy rental yields."

"One defining trend this year is the surge in population growth. Dubai is expected to reach 4 million residents, while Abu Dhabi is expanding steadily, driven by opportunities in energy, technology, and finance. This population rise is creating intense demand for homes across all price points, outpacing supply in certain areas." She explained.

Tatiana Tonu, CEO of Object 1 Also focused on the tourisms market saying: "Tourism is another strong driver. Dubai welcomed 9.88 millionovernight visitors in just H1 of 2025, and Abu Dhabi continues to boost its global profile with attractions like Yas Island, the Louvre, and the upcoming F1 Grand Prix. This wave of cultural and leisure tourism is translating into heightened demand for short-term rentals and hotel investments.

Large-scale projects remain a magnet for capital. From the relaunch of Palm Jebel Ali to Expo City Dubai’s evolution into a sustainable urban hub, new developments are reshaping the skyline while opening up lucrative opportunities for both residents and investors. Infrastructure expansion, from Etihad Rail to new metro lines in both Abu Dhabi and Dubai, is further enhancing the long-term appeal of emerging districts like Al Furjan and Dubai South."

"There is also a growing emphasis on quality and design. Investors are looking beyond location, seeking developments with modern finishes, smart home technology, and lifestyle amenities. This shift is driving developers to differentiate projects through innovation and community-building, rather than relying solely on prestige addresses." She mentioned.

Investor confidence is another important element that Tonu focused on.. she said:

"Investor activity remains firmly international, though local demand is strong. Object 1 has seen particular interest from markets such as India, Turkey, Iran, and across Africa and Europe, while North America has recently entered the developer's top ten. Buyers are increasingly motivated by diversification, quality of finish, and access to flexible payment plans. The data shows a clear preference for high-quality residences with European standards, a reflection of Dubai’s growing status as a lifestyle-driven investment destination."

she concluded: "Residential properties remain the powerhouse of the market. Off-plan sales are thriving, affordable housing is in high demand, and the migration of high-net-worth individuals continues to accelerate the entire segment. Families are also seeking larger, more functional homes, a trend that has persisted since the pandemic.. Commercial demand, on the other hand, is making a strong comeback. Occupancy in key office hubs like DIFC and Downtown stands at close to full capacity, pushing rents higher as supply struggles to keep pace. Logistics, medical facilities, and hybrid workspaces are at the forefront of this recovery, though overall transaction volumes are limited by the shortage of large-scale space."