While Dubai debates oversupply, Abu Dhabi is having a quieter, steadier year. ADREC logged 21,279 residential sales in 2025, up 47.43% year on year, concentrated in Al Reem Island, Yas Island, Fahid Island, and Saadiyat Island.
Momentum without the supply overhang
By December 2025, Abu Dhabi's price index had risen 31.59% year on year, with apartments up 34.77% and villas up 13.60%. The decisive difference with Dubai is supply: Cushman & Wakefield Core forecasts only about 6,500 new residential units for 2026, a fraction of Dubai's pipeline, which supports tighter conditions and a further 8 to 12% of price and rent growth.
The culture premium
Saadiyat Island commands a premium anchored by the Louvre, the Guggenheim opening in 2026, and the Zayed National Museum. Yas Island yields reach 7.5%. Aldar remained the market leader with more than 5,300 transactions, while Modon grew fastest and Reportage and Bloom Holding gained share.
An opening market
Abu Dhabi added seven new freehold zones in 2025, taking the total above 15, and properties valued at AED 1 million or more qualify for long-term residency. The capital's pitch for 2026 is simple: most of Dubai's demand drivers, far less of its supply risk.