The Abu Dhabi real estate market is experiencing significant shifts as investors increasingly turn to ready villas amidst a noticeable slowdown in new supply. According to a recent report, the capital saw a sharp decline in residential sales values during the first half of 2025, with ready villas becoming a preferred choice for many buyers. This trend underscores the evolving landscape of the property market, where demand for completed homes is surging even as overall sales experience declines.
Sales Performance in H1 2025
Limited new project launches have heavily impacted the supply in Abu Dhabi. As detailed in a report from Cavendish Maxwell, residential sales values across both ready and off-plan properties fell by 33 percent in value and 37 percent in volume during the first six months of 2025. The overall residential sales performance registered a total of AED 8.9 billion (US$2.42 billion) through approximately 3,300 transactions, a stark comparison to the AED 12.5 billion (US$3.4 billion) and nearly 4,500 transactions recorded in H1 2024.
Surge in Demand for Ready Villas
Despite these challenges, the market for ready villas and townhouses has shown resilience. The report highlights a remarkable increase of 72 percent in sales volumes for these properties, reaching their highest figures since 2021. Andrew Laver, Associate Director at Cavendish Maxwell, remarked, “Abu Dhabi’s overall residential real estate sales activity has moderated compared to a year ago, but demand for completed projects remains robust, as highlighted by our latest research.” This strong demand is attributed to both end-users and investors, reflecting a sustained interest in well-established, completed projects.
Future Market Prospects
Looking ahead, the report suggests that the lull in new launches could soon be addressed, with several large-scale off-plan developments expected to enter the market later in 2025. Key developers like Aldar and Modon, alongside smaller private firms, are anticipated to help revitalize supply and enhance market engagement. Laver added, “These market dynamics set a strong foundation for the second half of the year, with promising prospects across the off-plan and completed property segments.”
Key Market Highlights
In addition to the rise in ready villa sales, the report outlines several other noteworthy trends. Approximately 700 ready villas and townhouses were purchased in the first half of this year, reflecting a growing preference for larger family-oriented homes. The average transaction value for these ready homes climbed to AED 2.5 million (US$680,000), up from AED 2.1 million (US$570,000) year-over-year. Furthermore, average rental rates surged by 14 percent compared to the same period last year, highlighting the attractiveness of investing in ready villas.
With over 2,400 new units completed and 10,400 more properties under construction, the Abu Dhabi market showcases a complex yet dynamic landscape. As investors turn to ready villas amidst a supply crunch, the sector anticipates growth and transformation as new projects come on board, cementing its position as a strong contender in the regional property market.