Abu Dhabi’s Secondary Real Estate Market Surges 53% In Q1 2025

Abu Dhabi’s secondary real estate market has kicked off 2025 on a strong note, posting a remarkable 53% year-on-year increase in transaction value, reaching AED 5.04 billion in Q1. This represents an increase from AED 3.3 billion in the same period last year and accounts for 11.4% of the total market, according to data from Metropolitan Capital Real Estate (MCRE), a leading full-service real estate agency based in the Capital.

This performance reflects a sharp rise in demand for ready-to-move-in, high-yield properties, driven by a mix of end-users and international investors seeking stability and attractive returns in the UAE market.

“The performance of Abu Dhabi’s secondary real estate market in the first quarter of 2025 is truly exceptional, demonstrating the underlying strength and increasing maturity of the emirate’s property sector,” said Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate. “The significant growth in transaction value and volume underscores the high demand for ready properties and Abu Dhabi’s continued attractiveness for international investors, drawn by favourable returns and the emirate’s appealing lifestyle.”

MCRE has significantly outperformed the market, posting a 152% year-on-year increase in sales value and capturing a commanding 21% share of Abu Dhabi’s freehold residential secondary market. The company aims to increase this share to 25% by year-end. One of the most notable transactions of the quarter was the AED 83 million sale of a seven-bedroom villa deal on Saadiyat Island, featuring direct sea access. The deal was closed by Natalia Kushparenko, Luxury property specialist, underscores the rising demand for premium lifestyle communities in the Capital.

The residential secondary market alone saw sales values grow by 15%, rising to AED 2.74 billion in Q1 2025 from AED 2.38 billion in Q1 2024, with the number of transactions rising from 972 to 992.

One of the key trends driving this growth is the increasing preference for ready properties. Buyers prefer immediate occupancy or income-generating assets, contributing to the nearly twofold expansion of the secondary market since Q1 2024.

There has also been a surge in villa and townhouse sales with townhouses alone witnessing a remarkable 142% increase in value (AED 76.89 million in Q1 2025 vs. AED 31.71 million in Q1 2024), while villa sales also saw a healthy 15% rise in value (AED 1.47 billion in Q1 2025 vs. AED 1.27 billion in Q1 2024). In contrast, apartment sales value saw a more modest 7% increase (AED 899.33 million in Q1 2025 vs. AED 840.69 million in Q1 2024).

In terms of buyer demographics, UAE nationals led the market in Q1 2025, accounting for 21% of secondary transactions, followed by Russians (10%), UK nationals (9%) and Indians (8%).

Yas Island topped the list of most active areas, recording 266 transactions worth AED 755 million. It was followed by Al Reem Island (195 transactions, AED 275 million), Al Reef (127 transactions, AED 151 million) and Saadiyat Island (113 transactions, AED 909 million).

Looking ahead, MCRE expects the secondary market to maintain its momentum throughout the year, particularly in sought-after lifestyle destinations such as Saadiyat, Yas, and Al Reem Islands. International capital is also expected to continue flowing to the Capital amid rising global geopolitical and economic uncertainty, positioning Abu Dhabi as a haven of stability and growth.