Abu Dhabi: Abu Dhabi’s real estate market saw unprecedented growth in 2024, with residential rents up 20%, sales prices climbing 11%, and prime office occupancy reaching 95%, as tight supply fuelled competition and pushed prices higher. The Abu Dhabi Rental Index, launched in 2024, aims to bring greater transparency to pricing and lease negotiations, while new developments are expected to ease shortages in the coming years. Despite a wave of new supply expected in 2025, demand remains strong, driven by economic growth, foreign investment, and government-backed initiatives. As part of the UAE’s Vision 2030, expansion across finance, technology, and tourism is accelerating job creation, further increasing real estate demand and reinforcing Abu Dhabi’s position as a key global investment hub.

Key takeaways:

Residential:

  • Limited new supply: Only 3,004 residential units delivered in 2024, 46% below forecasts.
  • Prices climb: Sales prices rose 11% year-on-year, with villas leading growth.
  • Rents spike: Residential rents jumped 20%, with Saadiyat Island apartment rents up 31%.
  • Secondary market thrives: Transactions increased by 54% in 2024 as buyers favored ready-to-move-in homes.

Office:

  • Record occupancy: Prime office spaces reached 95% occupancy, citywide average at 89%.
  • Rents climb: City-wide office rents rose 11%,
  • Financial sector drives demand: Banking and finance accounted for 24% of all office space inquiries.

Residential demand stays high as prices rise

Housing demand far exceeded supply in 2024, pushing both sales and rents to new highs. Limited new deliveries drove an 11% jump in prices, with villas seeing the strongest appreciation. Khalifa City prices surged 30%, reflecting the growing appeal of suburban communities.

Rental markets tightened, especially in premium locations. Saadiyat Island saw rents rise 31%, while Reem Island and Al Raha Beach increased by 24% and 21%, respectively. As central areas grow more expensive, demand is shifting toward suburban and mid-market neighborhoods. In 2025, the Emirate will see 8,500 new homes delivered - almost triple the 2024 figure - but demand is expected to remain strong, keeping pressure on prices.

“Supply struggled to keep up with demand in 2024, driving sharp price increases,” said Prathyusha Gurrapu, Head of Research & Consultancy at Cushman & Wakefield Core. “While new supply in 2025 is expected to help, demand remains high, putting continued pressure on rents and sales prices.”

Rents climb amid record office occupancy

Abu Dhabi’s office sector had one of its strongest years on record. Prime offices were nearly full, with citywide occupancy reaching 89%. Limited availability fueled an 11% jump in rents, with most new developments already pre-leased. Although 2025 will see 104,000 sq. m. of office space come to market, most will be pre-leased.

“Office space is in short supply, especially in ADGM and Reem Island,” said David Short, Head of Abu Dhabi at Cushman & Wakefield Core. “Companies are acting fast to secure space, while others are looking at newer districts or maximizing their current offices.”

Looking Ahead

New supply will provide some relief, but Abu Dhabi’s real estate market remains competitive. The Abu Dhabi Rental Index is expected to help create a more transparent pricing structure, while freehold ownership expansions will open new investment opportunities.

"Abu Dhabi’s real estate market is set for continued growth in 2025. The residential sector will see a wave of new supply in key investment zones, helping to create a more balanced market. Meanwhile, office space remains in high demand, with Prime and Grade A segments nearing full occupancy, says Prathyusha Gurrapu, Head of Research & Consultancy at Cushman & Wakefield Core. “The city’s push for economic diversification—particularly in finance and technology—along with major infrastructure upgrades and strategic government initiatives, will keep attracting residents, businesses, and investors."

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For further information contact:
Rachel Smylie, Head of Marketing & Communications, rachel.smylie@cushwake.ae
Prathyusha Gurrapu, Head of Research & Consultancy, prathyusha.gurrapu@cushwake.ae

About Cushman & Wakefield Core

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. Cushman & Wakefield Core is an independently owned and operated affiliate of Cushman & Wakefield, with over 17 years’ experience operating in the UAE. For additional information, visit www.cushwake.ae.