Why Abu Dhabi is UAE’s fastest-growing luxury real estate destination in 2025

Dubai: Abu Dhabi’s high-end real estate market is having a breakout year in 2025, now emerging as a major player in the region’s luxury property space — and the numbers are telling.

In just the first four months of the year, sales of properties worth Dh7 million and above hit Dh6.3 billion, according to data from Metropolitan Capital Real Estate (MCRE).

More than half of those deals were in the super-luxury Dh10 million-plus bracket, underscoring a growing appetite for upscale homes among international investors, long-term residents, and high-net-worth buyers.

Abu Dhabi's real estate landscape is undergoing a lifestyle-led transformation. In 2025 alone, the city is expected to unveil 25 branded residential projects — a fourfold jump from 2024. High-profile launches include Jacob & Co Beachfront Residences, Waldorf Astoria Residences, and the record-setting Nobu Residences, which made headlines after a penthouse sold for Dh137 million — the capital’s costliest home to date.

The demand for branded living is concentrated around prime waterfront zones like Saadiyat Island, Reem Island, and the up-and-coming Mariah Island. These communities promise resort-style amenities, wellness-focused living, and name-brand exclusivity — at price points that are still more attractive than similar offerings in Dubai or Ras Al Khaimah. Average prices in these branded communities range from Dh2,500 to Dh4,000 per sq. m., offering relative value without compromising on luxury.

But it’s not just new launches driving momentum. The resale (secondary) luxury market has also caught fire, posting a 158% year-on-year jump in transaction volume. Nearly Dh3 billion in resale deals were recorded through April — 60% of which came from properties priced above Dh10 million.

That’s a significant indicator of investor confidence, particularly in ready-to-move-in inventory, with many buyers preferring the convenience of completed homes over off-plan purchases.

Investor demographics are shifting too. While Russian and CIS investors dominated early 2024, MCRE notes a changing tide in 2025 with increased activity from buyers in the UK, US, GCC, and UAE nationals. Nearly half of all recent buyers are end-users — long-term residents choosing to buy rather than rent, encouraged by rising confidence in Abu Dhabi’s real estate fundamentals.

Hotspots include Saadiyat Island, Yas Island, Al Hidayriyyat — where sales have already crossed 20% of 2024’s full-year total — and Reem Island, all of which are benefitting from improved infrastructure, beachfront access, and curated community planning.

With strong resale activity, a deepening pool of global buyers, and a pipeline of high-profile branded developments, Abu Dhabi’s transformation into a luxury real estate destination seems to be accelerating. For property watchers in the UAE, the capital’s premium market is no longer just an alternative — it’s becoming a first-choice.