Abu Dhabi: New hub for luxury real estate

Abu Dhabi, the capital of the United Arab Emirates, is experiencing a real boom in the luxury property market. 2025 has been marked by an unprecedented growth in transactions in premium properties, eclipsing even the figures of dynamic Dubai. The volume of transactions for properties priced at AED 7 million (approximately US$1.9 million) in the first four months of the year increased by 5%, reaching an impressive AED 6.3 billion (US$1.7 billion).

However, the most striking dynamics are in the ultra-high-end segment: more than half of all transactions were for properties priced above AED 10 million. This rapid growth is explained by several factors, the key one being the emergence and development of the branded residences concept. Abu Dhabi developers are actively creating exclusive lifestyle communities on prestigious islands such as Saadiyat, Al Reem and Maria.

In 2025, 25 branded projects are expected to be launched, a stark contrast to the much smaller number of launches in the previous year. Notable projects include Jacob & Co Beachfront Residences, Waldorf Astoria Residences and Nobu Residences, where one of the penthouses sold for a record AED 137 million.

The luxury resale market in Abu Dhabi is also showing impressive growth. Luxury resales have grown by a whopping 158% year-on-year to reach AED 3 billion. Of this, 60%, or AED 2.6 billion, were properties priced above AED 10 million. This demonstrates the high liquidity and attractiveness of luxury real estate in the emirate.

The geography of investors has undergone significant changes. There is a shift in demand from buyers from Russia and the CIS to residents of the UK, the US and other Western European countries. It is noteworthy that about 50% of buyers are end users who plan to live in the purchased property. The remaining 50% are investors seeking to diversify their investment portfolios.

Key locations:

The most popular are Saadiyat, Yas and Al Hidayriyat Islands, where sales volumes have increased by 20% year-on-year. These locations offer a combination of luxury infrastructure, developed social environment and picturesque natural landscapes.

Analysts predict that by the end of 2025, Abu Dhabi could break all records for the volume of luxury real estate transactions, finally securing its status as one of the world's leading luxury market centers.

This rapid growth is driven not only by the attractiveness of the properties themselves, but also by the stability of the emirate’s economy, the development of infrastructure and the growing popularity of the concept of branded residences offering an exclusive lifestyle and high returns on investment.