Is it worth investing in Abu Dhabi real estate in 2025?

Investing in new homes in Abu Dhabi is become an increasingly attractive option for global investors. The emirate's stable economy, strategic location, and modern infrastructure make it a compelling destination. However, like any investment, it's essential to weigh the benefits and potential risks carefully.

Abu Dhabi boasts a robust and diversified economy, reducing over-reliance on oil revenues. The UAE dirham (AED) has been pegged to the US dollar at a stable rate of AED 3.67 for over 20 years, minimizing currency risk for investors.

Statistics for the beginning of 2025

In 2024, Abu Dhabi's real estate market experienced significant growth. The volume of transactions increased by 11%, and property prices rose by 7.4%, particularly in the residential segment.

The volume of real estate transactions in Abu Dhabi reached AED 17.24 billion in more than 5,000 transactions in the first two months of 2025, indicating strong investor interest. (according to Propertynews)

According to the "Dali" platform, real estate transaction volume reached 2,676 transactions out of 7,676 transactions since the beginning of the year.

Benefits of property in Abu Dhabi

The emirate offers attractive rental yields, averaging between 7% and 9%, which are tax-free. This high return on investment makes Abu Dhabi's real estate market one of the most lucrative in the region.

Investing in property worth AED 2 million (approximately USD 545,000) or more qualifies investors for a 10-year Golden Visa. This residency permit allows for living, working, and sponsoring family members in the UAE, enhancing the appeal of investing in Abu Dhabi's real estate market.

The UAE does not impose personal income tax, inheritance tax, or gift tax, making property investments more profitable. This tax-friendly environment adds to the attractiveness of Abu Dhabi as an investment destination.

Popular Investment Areas

• New houses in Al Reem Island: Initially, the first half of 2024 saw a 6.3% decrease in property values. However, the second half witnessed a rebound, with both rental rates and property prices increasing.
• New houses in Saadiyat Island: This area has become a prime investment destination, especially for luxury properties. The Mamsha Al Saadiyat development, in particular, recorded a remarkable 58.8% increase in average price per square meter.

The Abu Dhabi real estate market is poised for continued growth. The introduction of innovative residential projects adhering to sustainable development standards is enhancing its appeal to a global audience. Notably, projects like The Sustainable City on Yas Island utilize renewable energy, offering residents substantial savings of up to 100% on energy bills.

Potential Risks and Considerations

While Abu Dhabi has made significant strides in making its property market more accessible to foreign investors, it's crucial to stay informed about any legal and regulatory changes that could impact property ownership and usage.

Investors should consider the local culture and climate. Abu Dhabi's hot and arid climate may not suit everyone if you plan to buy a home for living. The rules of life in Arab countries are also not very secular. Therefore, you need to study in advance the prohibitions and what you can not do in this country, how to dress.

New projects in Abu Dhabi 2025

And if you already know what you want, you can use our catalog to find great deals and new projects. After all, as you know, off-plan objects can cost much cheaper, and developers are always completing their objects. We have prepared for you the top 3 popular projects at the moment.

Yas Golf Collection

Yas Golf Collection is a luxury residential community from Aldar Properties on Yas Island in Abu Dhabi. This building features a mix of studios, one, two and three-bedroom apartments, some of which are furnished. Residences have modern interiors and quality finishes, with expansive balconies that overlook the Yas Links Golf Course, sea, and mangroves.

• Studios to three-bedroom apartments, with furnished and unfurnished units.
• Interior spaces with modernity and quality finishes.
• Show more Spacious balconies overlooking Yas Links Golf Course, sea, and mangroves.
• Numerous swimming pools and a state-of-the-art fitness center.
• Wellness facilities, including yoga and meditation rooms.
• Raised gardens with sweeping sea views.
• Recreational center with game room & coffee station.
• Community retail outlets, premium cafés and restaurants.

Located on Yas Island, Yas Golf Collection is just moments away from Yas Mall, Ferrari World, Yas Water World, and several other entertainment and leisure facilities. The community is well connected to essential services and city transport links, which creates convenience for both investors and residents alike.

Reem Hills

With designated builder status on Al Reem Island in Abu Dhabi, the Reem Hills project is a class apart with a status that speaks of grandeur and serenity. This huge project is a comprehensive selection of luxurious 5 to 7-bedroom villas ranging in size from 10,484 sq. ft. The various architectural styles of the villas include Zen, Frame, Cubic, and Minimal, each one offering its aesthetic appeal. One of the defining features of Reem Hills is its man-made hill, which provides residents with elevatedviews of the sea and surrounding landscape. The blend of natural beauty with modern architecture is good for a serene yet sophisticated life.

• Architectural diversation luxury 5 to 7-bedroom villas.
• Artificial mount that allows extensive views of the sea.
• Resident exclusive beach access.
• Extensive facilities, including a private school, a hospital, mosques, stores or shops, and community centers.
• Parks, jogging tracks, sports courts, landscaped green areas, etc.

Reem Hills is located at Al Reem Island and links directly to Abu Dhabi's key attractions. The community is 3 minutes from Reem Mall and Sorbonne University, 6 minutes from Repton School, and 9 minutes from Abu Dhabi Mall. The Corniche is a 12-minute drive, and the Sheikh Zayed Grand Mosque can be reached in 18 minutes.

Abu Dhabi International Airport is about 20 minutes away. With its skyscrapers, commercial centers, and learning areas, Al Reem Island is known as a metropolitan and corporate community that is a hot spot for business and lifestyle. The island lifestyle provides a unique combination of urban amenities and natural beauty, making it a great choice for families, professionals, and investors.

Mandarin Oriental Residences

Mandarin Oriental Residences, Abu Dhabi’s only luxury branded residence project in the Saadiyat Cultural District, offers 226 upscale properties, including one-to-four-bedroom apartments and five-bedroom penthouses. The residences, designed by the renowned Bjarke Ingels Group (BIG), include interiors curated by Lillian Wu Studio that meld rich natural materials to create intimate and inviting living spaces. Floor-to-ceiling windows in expansive floorplans will provide views of the Zayed National Museum and surrounding cultural landmarks.

• 226 furnished apartments, from one- to four-bedroom configurations as well as five-bedroom penthouses.
• Natural materials such as earthy woods and marble are featured in interiors by Lillian Wu Studio.
• Fresh, spacious floorplans with floor-to-ceiling windows and sweeping views.
• This gives access to Mandarin Oriental’s legendary services, from wellness programs by The Spa to a state-of-the-art gym and a beauty bar.
• Exclusive resort-style amenities include a private theatre, residents’ lounge, games room, library, and the world-first Mandarin Oriental Cake Shop. ​

Nestled within the Saadiyat Cultural District the residents live footsteps from some of the world’s most celebrated cultural institutions, including the Louvre Abu Dhabi, Guggenheim Abu Dhabi, and the soon-to-open Natural History Museum Abu Dhabi. The scenario is rare to combine modern luxury with recreated traditional culture that allows residents to live in real masterpieces of art and architecture. This gives the unique opportunity to enjoy the cultural and leisure experiences as the majestic Mamsha Beach white sands are right out of the doorsteps of this development.