This means, however, among other things, that Abu Dhabi is becoming a place that is increasingly becoming more appealing to call home-an interesting mix of modern architecture and a rich cultural heritage.
Well, while you sip Arabic coffee from your new apartment in Abu Dhabi, let’s delay dreaming and talk about the nitty-gritty: the current price of buying property.
Do you think it is worth buying an estate in Abu Dhabi in 2025? What are the popular trends and factors dominating the market? Let’s delve into the subject.
Abu Dhabi’s Booming Real Estate Market
There can be an upswing in the property market in Abu Dhabi , as growth and higher property prices are forecasted for the year 2025. Indeed, efforts are being made by the emirate to diversify its economy- positive messages are being sent via the strong investor confidence thus created. There are expected to be more activities in the residential property and commercial property sectors.
Actually, property prices are forecasted to increase by at least 3% in 2025 in Abu Dhabi , owing to a strong demand from investors. This is because there is a 363% increase in foreign direct investment, which is planned from 2022 to 2024, with an accumulation of over AED 834 million. Areas that qualify for consideration include Yas Island (infamous for luxury villas) and Al Ghadeer (one of the most popular places for affordable apartments).
What’s Driving The Growth?
Many reasons can be put forth as to why the property market of Abu Dhabi thrives:
- Investment-friendly policies: The very essence of the UAE attracts the foreign capital since the predictions show that international transactions are set to increase. The government introduced in 2022 a 10-year Golden Visa scheme whereby foreigners can stay in the country for a period of time of up to 10 years of purchasing a property worth AED 2 million and above.
- Location and Economic Stability: Abu Dhabi’s status as a global hub invites a bouquet of instigating investors into looking for growth and stability.
- Infrastructure Development: The infrastructure development boosts the accessibility and therefore the attractiveness of the city to investors.
- Government Support: Increased Transparency and Strong Government Support.
Breaking Down the Costs: What Can You Expect To Pay?
Let’s get right to the point. What will the actual cost of buying property in Abu Dhabi be? Buy property in Abu Dhabi usually ranges at $3,550 per square meter. This is, of course, an average and there may be considerable differences with respect to location and type of properties.
These are some broad price guidelines that you might expect:
- A 1-bedroom property, around 60 square meters: approximately $213,000
- A 2-bedroom property, around 85 square meters: approximately $302,000
These are only approximations. Luxury properties in top locations are priced at a premium on properties on Saadiyat Island and Al Reem Island . Properties in more budget-friendly locations could be in Mussafah or Mohammed Bin Zayed City.
Price Trends and Forecasts for 2025
A clear forecast by experts shows that property prices in Abu Dhabi would grow at a steady pace during the year 2025. You can check the detailed forecast and appreciation in our latest blog on Abu Dhabi Real Estate Market Forecast 2025.
Don’t Forget The Hidden Costs!
While the purchase price is the biggest expense, remember to account the “hidden” costs which can include:
- Sale and Purchase Fees: Usually split between buyer and seller, from 1% to 4% of the property’s value.
- Mortgage Costs: If you are financing the purchase, include mortgage application fees, valuation fees, and registration fees.
- Other Fees: Musataha and usufruct fees.
Abu Dhabi vs. Dubai: What’s the Difference?
How does Abu Dhabi differ from Dubai-the glitzy neighbor? Housing prices in Abu Dhabi are 46% lower than Dubai. Dubai is known as the city of luxury and listless growth; Abu Dhabi being more stable gives assurance of consistent increases in property prices low on major disruptions in the market.
Average cost property for a square meter in Abu Dhabi is DH10,904 in 2023 ($2,900) - up by 1.5% from 2022. Villa properties were valued at close to Dh 8,850 ($2,200) per square meter.
To Buy Or Rent: That Is The Question
Investing in property in Abu Dhabi is considered one of the best investments for a prospective long-term resident, as property prices have generally been increasing over the years. Numbeo shows a property price-rent ratio for Abu Dhabi at approximately 12.02, meaning one could potentially buy a property for about 12 years’ worth of rents.
Making an Informed Decision
The purchase of real estate involves momentous decision-making, so allow for proper research and consideration, as well as obtaining professional advice and opinions. Budget, lifestyle, and long-term objectives should all be put into consideration.
Explore various neighborhoods and property types for the utmost search for perfection. With planning and due diligence, the Abu Dhabi real estate market can be gingerly trodden with great assurance to buy an investment.
