UAE: Investing in Abu Dhabi real estate? Hotspots, emerging opportunities in emirate

Yas Island emerged as the most popular area in Abu Dhabi for buying luxury villas and apartments. It is also the most popular area to rent luxury villas and ranks third as the preferred choice to lease apartments.

This is based on Q1 2025 Abu Dhabi property market report released on Thursday by dubizzle, a leading classifieds platform in the UAE. The report, however, is based on prices advertised by real estate agencies on behalf of their clients on dubizzle.com and is not representative of actual real estate transactions conducted in Abu Dhabi. But it is indicative of the investment hotspots and emerging opportunities in the capital’s real estate sector.

From January to March this year, the price of villas on Yas Island, as per dubizzle search trends, averaged Dh4.68 million, while buying luxury apartments has an average price tag of Dh1.87 million. Renting a luxury apartment in the area, meanwhile, hovered around Dh229,000 annually.

Regarding investment profitability, Yas Island recorded the highest ROI (return on investment) at 6.99 per cent in the luxury apartment sector; Saadiyat Island emerged as the top-performing area for luxury villas, with an ROI of 5.6 per cent. Villas in Yas Island have an ROI of 5.53 per cent. The sales prices for 4-, 5- and 6-bedroom villas in the community have risen by 2.41, .24 and .89 per cent, respectively.

Based on the dubizzle report, Abu Dhabi’s real estate has experienced steady growth in Q1 2025, reflecting strong demand in both the rental and sales segments of the emirate. The increase in property prices is also an indication of investor confidence and shifting buyer preferences.

“It continues to be a period of steady growth for the Abu Dhabi real estate sector with significant progression in infrastructure, development and sustainability efforts,” noted Haider Khan, CEO of dubizzle and Dubizzle Group MENA.

Here are the other key developments in Abu Dhabi’s property market for Q1 2025:

• Al Reem Island has upheld its reputation as the top area for buying affordable apartments, with an average sales price of Dh1.54 million; while Khalifa City achieved the top position in the rental segment, where tenants are paying Dh44,00 annually.
• Al Reef has gained the leading position in the affordable villa market with an average sales price of Dh2.21 million; while Mohammed Bin Zayed City solidified its position as the top area to rent villas, where the average is Dh153,000 per year.
• Al Reef has also achieved the highest ROI in the affordable segment, with villas at 6.23 per cent and apartments at 10.08 per cent.

Luxury apartment investments

Yas Island, Al Raha Beach and Saadiyat Island have emerged as the leading areas for luxury apartment investments in Abu Dhabi for Q1 2025. This trend has been fueled by the proximity of these areas to world-class dining, shopping and entertainment options.

Yas Island has become the top choice among apartment seekers, with an average price of Dh 1.87 million and an ROI of 6.99 per cent. The per-square-foot price has increased by 2.54 per cent, climbing from Dh1,695 in Q4 2024 to Dh1,738 in Q1 2025.

Al Raha Beach has recorded a slight increase in per-square-foot price, rising from Dh1,320 in Q4 2024 to Dh1,347 in Q1 2025. The average sales price of the apartments in this area has been recorded at Dh1.95 million.

Meanwhile, Saadiyat Island has become a popular destination for luxury apartment buyers. The area has seen a 2.81 per cent rise in per-square-foot prices. On the other hand, Al Jubail Island and The Marina have experienced a decline in per-square-foot prices, dropping by 1.74 per cent and 1.20 per cent, respectively.

Al Reem Island, Masdar City and Al Reef have established themselves as top destinations for buying affordable apartments in Abu Dhabi.

Al Reem Island has recorded an impressive ROI of 7.31 per cent with an average sales price of Dh1.54 milllion. The area has seen a 3.53 per cent increase in per-square-foot prices, increasing from Dh1,216 in the last quarter of 2024 to Dh1,259 in the first quarter of 2025.

Masdar City and Al Reef have seen slight increases in per-square-foot prices, rising by 0.68 per cent and 1.74 per cent, respectively.

Affordable apartment buyers have also shown strong interest in Al Ghadeer and Al Shamkha. The per-square-foot prices in Al Ghadeer have climbed by 2.18 per cent; while the per-square-foot price in Al Shamkha has reached Dh1,401.

Villas for sale

Yas Island, Saadiyat Island and Al Jubail Island have dominated the luxury villa market in Q1 2025. These communities have garnered significant attention for their modern villas offering various luxurious amenities.

Villas in Yas Island have reached an average sales price of Dh4.68 million, with an ROI of 5.53 per cent. The sales prices for 4-, 5- and 6-bedroom villas in the community have risen by 2.41, .24 and .89 per cent, respectively.

Meanwhile, Al Reef, Al Shamkha and Khalifa City have emerged as the top choices for buyers looking for affordable villas.

Al Reef has maintained its position as the top area in the affordable villa segment, with an average price of Dh2.21 million and an ROI of 6.23 per cent. The per-square-foot price has climbed by 0.24 per cent, rising from Dh827 in Q4 2024 to Dh829 in Q1 2025.

Al Shamkha and Khalifa City have also come out as coveted destinations for affordable villas, with average sales prices of Dh4.13 million and Dh4.91 million, respectively.

Al Reem Island has recorded a 5.23 per cent rise in per-square-foot prices, rising from Dh1,304 in Q4 2024 to Dh1,373 in Q1 2025. Zayed City has seen its average sales price grow to Dh3.92 million.

Off-plan properties for sale

Several off-plan projects have contributed to the growth of Abu Dhabi’s real estate market in Q1 2025, attracting strong investor interest compared to Q4 2024.

Yas Bay, Saadiyat Cultural District and Al Maryah Vista 2 have gained prominence as Abu Dhabi’s leading luxury off-plan apartment projects in Q1 2025.

Yas Bay on Yas Island has established itself as a top choice for off-plan luxury apartments, with average prices reaching Dh2.02 million.

With an average price of Dh 4.45 million, Saadiyat Cultural District on Saadiyat Island has solidified its position as Abu Dhabi’s top destination for luxury apartments.

Al Maryah Vista 2 has become the top-searched project in Al Maryah Island, featuring centrally located off-plan luxury apartments priced at an average of Dh1.11 million.

Meanwhile, Reem Hills on Al Reem Island has drawn investor interest as an affordable community, with an average sales price of Dh1.65 million; Royal Park in Masdar City has appealed to buyers seeking budget-friendly options, with properties averaging Dh934,000.

Al Reeman 1 in Al Shamkha has gained popularity as an affordable off-plan project for apartments, offering properties at an average price of Dh793,000.

Regarding off-plan villas for sale in Abu Dhabi, Yas Acres on Yas Island has cemented its reputation as a premier luxury destination, with off-plan villas priced at an average of Dh6.52 million.

Saadiyat Lagoons on Saadiyat Island has established itself as Abu Dhabi’s premier villa community, with luxury homes priced at Dh8.98 million; Al Jurf Gardens has drawn interest for its upscale villas, priced at Dh5.56 million on average.

Al Reeman 2, Bloom Living and Al Naseem Community, meanwhile, have gained recognition as Abu Dhabi’s top affordable off-plan villa developments. Al Reeman 2 has apartments with an average sales price of Dh4.1 million; Bloom Living in Zayed City has become a preferred choice for budget-conscious buyers with average property prices at Dh3.92 million, while Al Naseem Community on Al Hudayriat Island has also been among the sought-after destinations for affordable villas averaging Dh8.89 million.