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.
.
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.
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.
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.
