Abu Dhabi's Secondary Real Estate Market Surges 53% in Q1 2025

Abu Dhabi’s secondary real estate market has surged into 2025 with impressive momentum, recording a 53% year-on-year jump in transaction value. The market reached AED 5.04 billion in Q1 2025, up from AED 3.3 billion in the same quarter last year. This segment now makes up 11.4% of the emirate’s total real estate market, according to data from Metropolitan Capital Real Estate (MCRE), a leading property firm based in the UAE capital.

Surge in Demand for Ready Properties

The strong performance is largely attributed to heightened demand for ready-to-move-in, income-generating properties. Both end-users and international investors are drawn to the UAE market’s combination of stability, lifestyle appeal, and attractive returns, fueling interest in ready stock over off-plan options.

“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’s Market-Leading Performance

MCRE has outshone the broader market with a remarkable 152% year-on-year increase in its own sales value. The firm currently holds a dominant 21% share of Abu Dhabi’s freehold secondary residential market and is aiming to raise this to 25% by the end of the year. One standout transaction this quarter was the AED 83 million sale of a seven-bedroom beachfront villa on Saadiyat Island, brokered by luxury specialist Natalia Kushparenko—a reflection of growing interest in high-end living communities.

Consistent Growth in Residential Segment

The residential portion of the secondary market saw a solid 15% increase in sales value, climbing from AED 2.38 billion in Q1 2024 to AED 2.74 billion in Q1 2025. The number of transactions also ticked up slightly, from 972 to 992 deals over the same period, suggesting both volume and value are on the rise.

Preference Shifts Toward Ready Units

A major factor behind the expansion is the rising preference for completed properties. Buyers are increasingly seeking homes they can either move into immediately or rent out for steady income, a trend that has nearly doubled the size of the secondary market since early 2024.

Villas and Townhouses Outperform Apartments

There’s been a notable boom in the villa and townhouse segment. Townhouses, in particular, recorded a 142% surge in value—reaching AED 76.89 million in Q1 2025, up from AED 31.71 million a year earlier. Villas also posted a healthy 15% increase in sales value, hitting AED 1.47 billion compared to AED 1.27 billion. In contrast, apartment sales grew at a slower pace, with just a 7% rise in value (AED 899.33 million vs. AED 840.69 million).

UAE Nationals Lead Buyer Activity

In terms of buyer nationality, Emiratis made up the largest share of secondary market activity in Q1 2025, accounting for 21% of transactions. They were followed by Russian buyers (10%), British nationals (9%), and Indian investors (8%).

Top Performing Areas in the Capital

Yas Island emerged as the most active location, with 266 transactions totalling AED 755 million. Other key hotspots included Al Reem Island (195 transactions, AED 275 million), Al Reef (127 transactions, AED 151 million), and Saadiyat Island, which recorded 113 transactions amounting to AED 909 million.

Positive Outlook for 2025

Looking ahead, MCRE anticipates sustained momentum in Abu Dhabi’s secondary market throughout the rest of the year. Demand is expected to remain strong in lifestyle destinations such as Saadiyat, Yas, and Al Reem Islands. With global investors increasingly seeking safe and stable markets, Abu Dhabi is positioning itself as a prime destination for secure and profitable real estate investments.