Abu Dhabi’s residential property market maintained its strong momentum in Q2 2025, with average prices increasing by 6.4 per cent quarter-on-quarter to AED 1,230 per sq ft (USD 335), according to Knight Frank’s latest Abu Dhabi Residential Market Review.
This growth pushed the emirate’s annual price increase to 17.3 per cent, representing a cumulative rise of 31.3 per cent since Q1 2020.
Apartments drove the quarterly performance, registering a 6.8 per cent gain to AED 1,296 per sq ft (USD 353), reflecting a 17.3 per cent year-on-year rise.
Al Raha Beach and Al Saadiyat Island emerged as leading areas for apartment price appreciation, with increases of 11 per cent and 10 per cent respectively since H1 2024.
Both neighbourhoods offer premium beachfront living, with Al Raha Beach further benefiting from its close proximity to Yas Island’s leisure and entertainment hubs.
Villas delivered stronger long-term gains, rising 3.4 per cent in the quarter to AED 1,103 per sq ft (USD 300), marking a 42.3 per cent increase since Q1 2020.
On Al Saadiyat Island, villa prices surged 28 per cent year-on-year, followed by a 22 per cent rise on Yas Island. Villas account for 37.4 per cent of Abu Dhabi’s upcoming supply, with sustained demand supported by limited new developments and more attractive pricing compared to Dubai.
