A recovery in April of Abu Dhabi's property market was fueled by a surge in ready-unit sales, amid strong demand in the UAE, a report has shown.
Total transactions in the UAE capital rose by 8 per cent month-on-month, to Dh5.7 billion ($1.6 billion), mainly on higher residential and land activity, investment bank EFG Hermes said in its report.
Residential activity grew 49 per cent to Dh3.7 billion compared to March, on higher off-plan and ready unit sales, the analysis found.
Off-plan sales were up 75 per cent month-on-month at Dh804 million, driven by a pick-up in activity on Saadiyat Island and Al Jubail Island, EFG Hermes said. Aldar Properties accounted for the largest off-plan market share, contributing 70 per cent of off-plan activity in April.
“Aldar recorded total off-plan sales of Dh567 million [up 160 per cent annually, up 92 per cent month-on-month], which were driven mainly by sales in Saadiyat Island. Jubail Island’s off-plan activity grew 189 per cent annually to Dh113 million,” EFG Hermes said.
“Bloom Properties’ activity was down 12 per cent month-on-month to come in at Dh44 million.”
Ready-unit sales in Abu Dhabi in April rose 97 per cent compared to the previous month, the lender estimated.
The UAE’s property market continues to perform strongly on government initiatives such as residency permits for retired people and remote workers, as well as the expansion of the 10-year golden visa programme and overall growth in the UAE’s economy amid diversification efforts.
Residential property sale prices in Abu Dhabi rose by 11 per cent annually last year amid higher demand and a supply shortage in the emirate, according to a March report by real estate company Cushman & Wakefield Core.
The Abu Dhabi Real Estate Centre reported that total transaction value in the emirate grew by 34.5 per cent to Dh25.3 billion across 6,896 deals in the first quarter of 2025, compared with Dh18.8 billion from 5,773 transactions in the same period of 2024.
While Yas Island registered the best annual price performance and Zayed City the lowest, Khalifa City registered the best performance in the rental market. Rents were up 14 per cent month-on-month, with the average annual rent for a two-bedroom apartment in Khalifa City at Dh91,881, the EFG Hermes data showed.
Mortgages accounted for 29 per cent of total residential activity, with mortgage activity skewed towards the budget segment, which includes communities such as Zayed City, Khalifa City, Al Jubail Island, Mohamed Bin Zayed City, Khalidiya, Mushrif and Reef, among others, EFG Hermes reported.
The average selling prices rose 3.2 per cent year-on-year and 4.9 per cent m-o-m to Dh11,640 per square metre, supported by higher prices across the budget segment, the report said.
Market activity in the luxury segment, which includes Saadiyat Island, Al Hudayriyat and Nurai Island among others, was up 152.4 per cent month on month to Dh838 million, supported by higher off-plan and ready-unit sales. Saadiyat Island was the most demanded area for rent, while Al Jubail Island recorded the highest rental value, the data revealed.
In the affordable segment, which includes communities like Al Muntazah, Reem Island and Yas Island, transaction value grew 69.2 per cent month-on-month to Dh1.4 billion, supported mainly by higher ready-unit sales. However, prices were down 4.8 per cent annually and 3.7 per cent month-on-month, EFG Hermes found.
Total market activity in the budget category increased 7.4 per cent month-on-month to Dh1.4 billion, on higher off-plan and ready unit sales. Mohamed Bin Zayed City had the highest demand in terms of sales transactions, the report said.