Abu Dhabi: sales of completed homes up 72%, villas up 10%

Abu Dhabi's housing market in 2025 showed a turn that Dubai did not: demand moved into completed stock.

The half-year figures

• Sales of completed homes: +72%, the highest since 2021.
• Average transaction value: up from AED 2.1m to AED 2.5m.
• Price index: +8.1% year on year.
• Villas: +10.1% over the year — faster than the market.
• Rents: apartments +12.5%, villas +7% year on year.

How much is being built

Around 2 400 new units were delivered in the emirate in the first half of 2025, with a further 10 400 expected before year end and more than 11 000 in 2026. Supply is growing — and demand is not going into it.

Why the buyer chooses finished

The difference from Dubai is explained by who the buyer is. The Abu Dhabi market is open to foreigners only in designated investment zones, and a larger share of demand comes from residents buying to live in rather than from international investors buying to trade. A resident buyer wants keys, not a handover date in 2029.

The second factor is the rental market. With apartment rents up 12.5%, a completed property produces income immediately, and in a market with a capped rent increase that predictability is worth more than an off-plan discount.

What follows for an investor

Abu Dhabi and Dubai are not one market with a shared cycle, and strategies do not transfer between them. Off-plan appreciation, the core Dubai play, has a much thinner buyer pool here. Income from completed stock, the less glamorous play, has a deeper one.

And the constraint that shapes everything: the annual rent increase cap in the emirate was set at 0% from June 2026. Model a buy-to-let here on the current rent held flat, not on an indexation assumption imported from Dubai.