Abu Dhabi residential market records 12-month transaction peak in Q3: Savills

17/11/2025 04:00 AST

Abu Dhabi's housing market logged more than 6,500 transactions in the third quarter of 2025, the highest in a year, as population growth and new project launches drove a surge in off-plan sales.

According to the latest report by real estate services firm Savills, residential deals climbed from about 4,000 in the second quarter and 3,700 in the first quarter, with off-plan transactions making up 77 percent of all activity - well above the 12-month average of 64 percent. New launches on Fahid Island, Saadiyat Island, and within Bloom Living helped drive the upswing.

Earlier this month, ValuStrat issued a similar assessment, noting that Abu Dhabi's real estate market posted its strongest growth on record in the third quarter, driven by rising residential values, firmer rents, solid demand, and elevated off-plan activity.

Andrew Cummings, head of Residential Agency at Savills Middle East, said: "Abu Dhabi continues to demonstrate its long-term appeal among both domestic and international investors. We are seeing sustained appetite for well-designed, high-quality homes that align with evolving lifestyle aspirations."

He added that Abu Dhabi's strong fundamentals, expanding roster of global developers, and growing stock of branded residences are deepening its position as a key regional hub for quality real estate investment.

Average sales rates across the emirate rose 16 percent year on year in the third quarter to 17,394 dirhams ($4,736) per sq. meter, supported by resilient end-user demand and limited ready supply.

Apartments continued to dominate activity, representing 78 percent of total transactions during the quarter.

Developers launched 21 projects totaling more than 5,700 units during the quarter, drawing regional and international players including Sobha Realty, Mered, and Mira Developments. Savills said interest from high-net-worth buyers continued to support the branded residence segment.

However, Savills added that supply remains insufficient to meet expanding demand, supporting continued pricing resilience.

"Supply constraints and steady population growth have supported healthy price appreciation across Abu Dhabi's prime and emerging districts," said Ali Ishaq, head of Residential Agency at Savills Middle East.

He added: "The city's strong economic footing, combined with increased transparency through initiatives such as the Madhmoun system, continues to underpin investor confidence. As new projects come to market, we expect this positive trajectory to carry forward into 2026."

Arab News