Abu Dhabi’s real estate market showed balanced availability and demand dynamics in August and September, with slight movements in prices.
Real estate experts explained that the strong demand for residential units in prime locations supports steady price increases across specific categories, notably studios and one-bedroom apartments.
They confirmed that these slight increases signal the beginning of a major rise, supported by rising demand for residential units and tourism activity in Abu Dhabi, reflecting the market’s strength and its ability to adapt to economic and social changes.
What Experts Are Saying About Demand Changes
The Vice President of Sales at Bayut, Vibha Ahmed, said that Abu Dhabi’s residential rental market continues to show balanced indicators between supply and demand, with slight price movements in some areas, a sign of the market’s stability and adaptability to changing demand patterns and tenants shifting priorities.
She added that August and September 2025 data reflect a clear trend of tenants moving toward areas that combine affordable prices and suitable quality, such as Mussafah and Khalidiya, where “we’ve seen strong demand for smaller units that meet the needs of a wide group of residents.”
She explained that coastal and urban areas, such as Yas Island and Al Raha Beach, are recording the highest rental rates, particularly for studio and one-bedroom units.
Vibha noted that the rise in studio rents by 5% on Yas Island and 1.9% on Al Reem Island stems from the limited supply in this category and its popularity among employees and residents seeking efficiently designed units in strategic locations.
She concluded that Abu Dhabi’s real estate market shows strong performance, reflecting a healthy and sustainable balance, and is expected to witness potential rent increases if demand pressure continues. The launch of new residential projects, she added, could boost market dynamics, pushing the market toward greater maturity and variety in supply.
Increase in Rental Demand
The Founder and CEO of Nationwide Real Estate – Middle East, Amin Al-Qudsi, stated that the residential rental market in Abu Dhabi kept overall stability in average annual rental prices during August and September 2025, with slight increases recorded in certain areas.
Al-Qudsi explained that this was because of the high demand for residential units in prime locations, noting that this performance matches what the market has recorded in previous periods. Data showed that price movements tend to remain stable, with varying increases depending on the strength of demand and the availability of supply.
Studio Statistics
The data showed that the average annual rent for a studio in Yas Island reached AED 83.3 thousand in September, compared to AED 79.3 thousand in August, marking a 5% increase. Meanwhile, the average annual rent in Al Khalidiyah rose by 2.5% to AED 41 thousand, and in Al Reem Island it grew by 1.9% to AED 68.3 thousand, up from AED 67.1 thousand in August.
One Bedroom Statistics
Al-Markaziya recorded the highest average rental price in Abu Dhabi during September 2025, according to data from the Bayut platform.
The average annual rent for a one-bedroom apartment in Al-Markaziya was AED 125 thousand, followed by Al Raha Beach at AED 116.9 thousand, Yas Island at AED 98.1 thousand, and Al Reem Island at AED 91.1 thousand.
The data also showed that the average annual rent for a one-bedroom apartment with a living room increased in Al Raha Beach, Musaffah, Al-Markaziya, and Al Reem Island during September 2025 compared to August, by 8.5%, 3%, 2%, and 0.4%, in the same order. Meanwhile, the average annual rent for a one-bedroom apartment with a living room decreased in Al Khalidiyah, Al Corniche, and Yas Island by 18%, 1.3%, and 1.2%, in the same order.
