Abu Dhabi property prices climb again as global demand surges
Residential property prices in Abu Dhabi are on a sharp upward trend, driven by a surge in international demand and increased interest from high-net-worth individuals (HNWIs), according to new data released by global real estate consultancy Knight Frank.
In the second quarter of 2025, home prices in the UAE capital rose by 17.3 per cent, pushing average values up to AED 1,230 per square foot. The spike brings total price growth to 31.3 per cent since the start of 2020.
Villa prices, in particular, have seen a major leap, up 42.3 per cent since Q1 2020, while the apartment segment also grew 17.3 per cent year-on-year.
One of the key drivers of the rising prices is a mismatch between demand and supply. The pipeline of new homes has lagged behind surging buyer interest, tightening inventory and contributing to upward pressure on prices.
Another factor is Abu Dhabi’s competitive pricing. Compared to Dubai, properties in the capital are still approximately 30 per cent more affordable, offering what many investors see as better value for money.
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19 per cent of surveyed wealthy individuals said they plan to buy a home in Abu Dhabi this year, up from 14 per cent in 2024.
Among those worth $30 million to $50 million, 75 per cent expressed a desire to invest in residential property in the city.
Even more striking, 65 per cent of individuals worth over $50 million are actively looking to acquire homes in the capital.
These figures underscore Abu Dhabi’s emerging status as a global property investment destination, fueled by a combination of strategic pricing, lifestyle appeal, and political-economic stability.
With momentum building and international confidence rising, the capital’s real estate market is poised for continued growth, particularly in the luxury and ultra-luxury segments.
For further information, visit knightfrank.ae
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