Abu Dhabi’s population grew 7.5% in 2024, reaching 4.13 million. Growth in tourism, aviation, retail, and construction drove this increase. Consequently, housing demand now outpaces supply, putting pressure on the real estate market.
The UAE economy is expected to grow 4.6% in 2025, with non-oil sectors contributing significantly, according to the World Bank. Abu Dhabi’s real estate market has already performed strongly in early-to-mid 2025. Apartment prices rose 18%, while villa prices climbed 14% year-on-year as of June.
Amer Al Ahbabi, CEO of Vertix Holdings, said, “Housing demand exceeds supply as Abu Dhabi needs more properties. Some new releases sold out immediately. I urge more developers to enter the market, where home prices are rising rapidly. Without capital gains tax, buyers and investors can earn strong returns.”
Industry reports show that active urban development projects in the emirate total AED 2.78 trillion ($758.79bn). Urban construction accounts for AED 813bn ($221.56bn). Developers such as Reportage, Danube Properties, Object 1, Dugasta Properties, Meta Homes Real Estate GGM, and Dia Properties confirmed they will launch new projects. Reportage Properties reported strong sales during a recent exhibition, selling most homes immediately.
Residential supply is gradually increasing. So far in 2025, developers have delivered 2,400 units. They plan to complete approximately 10,400 units by year-end, with 11,000 more scheduled for 2026, according to Cavendish Maxwell.
The Abu Dhabi Real Estate Centre (ADREC) reported that real estate transactions rose 39% in H1 2025, reaching AED 51.72bn ($14.09bn) compared to AED 37.2bn ($10.13bn) in H1 2024. This growth shows strong investor confidence and market momentum.
With ongoing population expansion and active development, Abu Dhabi real estate is on track for continued growth. Developers and investors actively explore opportunities in apartments, villas, and large urban projects across the emirate.