Abu Dhabi’s residential property market is undergoing a telling transformation with buyers — ranging from families to investors—increasingly turning their gaze toward ready villas and townhouses, fuelling an upswing in secondary-market activity.
According to realty experts, this shift, reflected in increased sales volumes and elevated prices, mirrors the shrinking presence of off‑plan transactions amid limited new supply.
A report by Cavendish Maxwell shows that ready villa and townhouse sales in the first half of 2025 surged by an 72 per cent year‑on‑year, propelling volumes to their highest level since 2021. This rise translated into roughly 2,300 completed‑home transactions out of some 3,300 total deals over the period. The average transaction price for ready homes climbed from Dh 2.1 million to Dh 2.5 million, signalling growing demand and investor confidence in the secondary market.
Meanwhile, off‑plan sales languished. Cavendish Maxwell’s data shows off‑plan volumes tumbled by 69.9 per cent year‑on‑year and dropped 49.5 per cent compared to the second half of 2024. Overall, residential sales in the first half of 2025 totalled approximately Dh 8.9 billion across 3,300 transactions, representing a 33 per cent decline in value and a 37 per cent fall in volume versus the same period last year.
This supply crunch is not easing soon. Some 2,400 units were delivered in H1 2025, with a further 10,400 expected by year‑end and over 11,000 scheduled for 2026. The government’s Vision 2030 focus on economic diversification, coupled with steady population growth, continues to bolster demand for quality, family‑oriented housing, especially those ready for occupancy.
ValuStrat’s Q2 2025 “Real Estate Review” further underscores rising prices and rents. The firm’s ValuStrat Price Index climbed 2.2 per cent quarter‑on‑quarter and 8.1 per cent year‑on‑year to reach 128.3 points (with Q1 2021 as base 100). Villa values rose even more sharply—2.6 per cent quarter‑on‑quarter and 10.1 per cent year‑on‑year to 138.2 points. Apartment prices also advanced, albeit more modestly, by 1.7 per cent quarter‑on‑quarter and 5.9 per cent year‑on‑year.
The rental market hasn’t lagged behind. The residential rental index jumped 1.5 per cent quarter‑on‑quarter and 9.5 per cent year‑on‑year to 122.8 points, with apartment rents rising 2 per cent quarter‑on‑quarter and a record 12.5 per cent annually. Meanwhile, villa rents rose 7 per cent year‑on‑year.
Market watchers said this dynamic makes ready homes particularly attractive: renters and buyers alike are paying premiums for immediate occupancy and quality accommodation in locations that offer desirable amenities and stability.
The commentary from industry experts such as Andrew Laver of Cavendish Maxwell captures the nuance—overall activity may have tempered, but demand for completed products remains rock‑solid, pushing up prices for both villas and apartments and underscoring enduring appetite among investors and end‑users.
ValuStrat adds further context: despite a rebound from a slow Q1, off‑plan transactions still trailed last year by 51.8 per cent, even though they rose 53.1 per cent quarter‑on‑quarter. Ready home sales grew 6.4 per cent QoQ and 3 per cent year‑on‑year, with average ticket sizes around Dh2.4 million.
Real estate market pundit argue that the emerging trends paint a compelling picture—a market adapting swiftly to supply bottlenecks, with end-users and investors gravitating toward the ready segment. Larger family homes with modern finishes in prime locations are clearly commanding more attention, and price dynamics are following suit.
“Abu Dhabi’s real has become one of mature resilience: ready villas and townhouses have become the market’s favourites, propelled by scarcity of off-plan developments and unwavering buyer demand. With supply expected to inch up later in the year—but likely still trailing demand—the secondary market’s momentum into H2 2025 looks set to continue,” they said.
