Abu Dhabi’s residential real estate market is experiencing a sharp tilt toward villas, driven by a shortage of apartments and growing demand from high-net-worth individuals and professionals. Villas now account for 37.4% of the supply pipeline, yet their scarcity is pushing prices higher, with values rising 3.4% quarter-on-quarter in Q2 2025 to Dh1,103 per sq ft—a 42.3% increase since Q1 2020.
Yas Island and Saadiyat Island lead the villa market, with year-on-year price growth of 22% and 28% respectively. Compared to Dubai, where villa prices are nearly double, Abu Dhabi offers better value and a more family-friendly lifestyle, making it increasingly attractive to buyers seeking primary residences, holiday homes, or retirement properties.
Apartments, while still in demand, face supply constraints. Only 890 new units were delivered in 2025, and 33,074 are under construction for delivery by 2029, with 62% of that pipeline being apartments. Yas Island tops the list for future supply, with over 8,000 units planned, followed by Al Shamkha and Saadiyat Island, which will feature branded residences by Mandarin Oriental and Nobu.
Residential prices overall rose 6.4% quarter-on-quarter to Dh1,230 per sq ft, with annual growth hitting 17.3%. Al Raha Beach and Saadiyat Island led the apartment segment, reflecting the appeal of beachfront living and proximity to leisure hubs.
Knight Frank’s data shows that 63% of global buyers are purchasing for personal use, while 37% are investment-driven. With Abu Dhabi’s prices still 30% lower than Dubai’s, the emirate is emerging as a compelling alternative for luxury property seekers and portfolio diversification.
