The Abu Dhabi real estate market is undergoing a major shift, with many people shifting from renting to owning homes. Property sales reached a record AED 61.8 billion in 2025. This 50% increase suggests that people plan on staying in the city for a long time.
The population grew by 7.5%, and this growth is pushing people towards property investment. Currently, global investors view the capital as a permanent home rather than a short-term relocation for work.
The increasing trend of expats buying homes in Abu Dhabi stems from the need for stability and smart money choices. Areas near the water, like Yas Island and Saadiyat Island, have become the most popular places to buy. House prices in these luxury areas have gone up by as much as 15% in one year.
According to Hermes Real Estate, the market remains strong with a ‘disciplined approach’ to supply, where new units are introduced gradually to preserve pricing stability. Many buyers are choosing homes that are already built and getting a mortgage quickly, while interest rates are lower.
Expats buying homes in Abu Dhabi usually incur extra costs that add up to 4% or 9% of the total price. You must pay a 2% registration fee and a 2% commission to the real estate agent. There are also other smaller fees for paperwork and the bank.
According to Sands of Wealth, "buyers today are paying a clear premium" of roughly 30% compared to 2020 levels. Even with these higher prices, the rental returns of 6% to 8% make owning a flat a very good investment.
Overall, Abu Dhabi is changing from a place for short-term workers into a city of permanent residents. As projects like the Etihad Rail are developed, home values in middle-class neighborhoods will likely rise. This will provide more families with a chance to enter the market.