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H1 2025 Real Estate Market Report: How Abu Dhabi and Dubai Are Redefining Global Investment
- July 31, 2025
- /
- Market & Trends
The first half of 2025 tells a story that’s bigger than just numbers. It’s a story of transformation, confidence, and the UAE’s steady real estate rise as one of the most desirable places in the world to live, invest, and grow.
At Oia Properties, we’ve watched this shift happen in real time — and now, through official data from ADREC, DLD, and top industry reports, we’re breaking down what this growth truly means for buyers, investors, and the future of real estate areas in the UAE.
A Unified Momentum: UAE Property Market in Motion
Either new residents putting down roots, or international buyers seeking long-term value, both Abu Dhabi and Dubai have proven they’re not just cities — they’re destinations of intent.
Together, they’ve recorded a combined AED 482+ billion in real estate transactions in H1 2025, setting a new benchmark for what a maturing, resilient, and future-forward market looks like.
Let’s break it down.
📍Abu Dhabi: Infrastructure-Fueled Growth & Rising Global Interest
Total Transaction Value: AED 51.7 Billion
YoY Growth: +39%
Total Transactions: 14,167
FDI Investment Value: AED 3.38 Billion
Top Foreign Buyers: Russia, China, UK, France, Kazakhstan, USA
Abu Dhabi’s real estate market in H1 2025 wasn’t just active — it was accelerating. Key infrastructure projects like Etihad Rail and the upcoming Disneyland on Yas Island weren’t just headlines. They became catalysts, driving real movement across the capital’s residential and investment sectors.
Digital innovation also played a role. Platforms like Madhmoun have introduced transparency and ease, helping both local and foreign investors navigate with confidence.
Top Performing Areas in ABu Dhabi by Transaction Value
Saadiyat Island – AED 9.1B
Yas Island – AED 5.86B
Al Bahia – AED 3.98B
Off-Plan Momentum
From budget-conscious apartments in Al Shamkha to ultra-luxury waterfront villas on Saadiyat, the off-plan segment showed strength across all tiers. Notably, projects like Granada at Bloom Living and Yas Riva Villas recorded high buyer engagement.
Returns That Speak for Themselves
Mid-tier apartments in Al Reem Island posted 7.33% ROI, while Al maryah Island led luxury apartment returns at 8.48%. On the villa side, Saadiyat and Yas Island recorded average ROIs above 5.4%, solidifying their appeal to long-term investors.
📍Dubai: A City That’s Earning Long-Term Trust
Dubai continues to evolve from a dynamic expat hub to a globally trusted investment destination — where real estate is not just transactional, but transformational.
In H1 2025, the emirate added nearly 60,000 new investors, with a major push from UAE residents converting from tenants to owners. The luxury segment led growth, particularly in properties above AED 20M, driven by European and UK-based ultra-wealthy buyers.
A More Inclusive Market
Women accounted for AED 73.2B in transactions — a signal of growing economic participation and ownership.
Top Areas by Value
Market Stabilisation — Not Slowdown
Despite the enormous growth, experts suggest that Dubai is now entering a stabilisation phase, marked by steady capital appreciation, improved rental supply, and a more sustainable trajectory. With over 17,000 off-plan units handed over, rental pressures are easing, but values continue to climb in high-demand areas.
The Bigger Picture: Why the UAE is Still Just Getting Started
With over 482 billion dirhams in combined deals across both cities, one thing is clear — the UAE is not slowing down. It’s building a real estate ecosystem rooted in:
- World-class infrastructure
- Investment-friendly regulations
- Global connectivity
- Long-term livability
Whether you’re an investor seeking ROI, a buyer looking for lifestyle, or a tenant thinking about ownership — this is a moment to pay attention.
