Real Estate

Secondary market posts 158% growth as investor confidence strengthens

Abu Dhabi’s luxury real estate market has seen unprecedented growth in 2025, fueled by a sharp rise in branded residences and a surge in high-end property sales. According to Metropolitan Capital Real Estate (MCRE), a leading full-service real estate agency in the capital, branded residence launches have quadrupled year-on-year, signaling a major shift in investor interest and lifestyle-driven preferences.

In the first four months of the year alone, luxury property transactions valued at AED 7 million and above reached AED 6.3 billion — a 5% increase over the same period last year. More than half of these transactions were in the ultra-luxury category (AED 10 million+), underscoring strong demand from high-net-worth individuals (HNWIs), international investors, and long-term residents.

“Abu Dhabi has firmly positioned itself as a premier destination for luxury and lifestyle-led investments,” said Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate. “We are witnessing growing investor confidence, with many buyers expanding their portfolios after initially acquiring a single property. Long-term residents are also increasingly choosing to buy rather than rent.”

Branded Residences Drive Market Momentum

Branded residences have emerged as a key growth engine in 2025, with at least 25 new projects expected to be announced — a sharp rise from just a few in 2024. These high-profile developments include Jacob & Co Beachfront Residences, Brabus Residences by Cosmo, Waldorf Astoria Residences, Elie Saab Waterfront, SHA Wellness Residences, Mandarin Oriental Residences, and Nobu Residences.

The Nobu penthouse notably sold for AED 137 million — marking the highest residential transaction in Abu Dhabi’s history. These projects are predominantly located in premium areas such as Saadiyat Island, Al Reem Island, and Mariah Island, reflecting the city’s ongoing transformation into a luxury real estate hub.

Secondary Market Records Massive Growth

The secondary luxury market has also posted remarkable growth. Transaction volume rose 158% year-on-year, with resale activity totaling nearly AED 3.0 billion by April 2025. Properties valued at AED 10 million and above contributed AED 2.6 billion, or 60% of total secondary market sales.

In just four months, the super-luxury resale segment achieved 22% of the full-year total seen in 2024, indicating rising investor interest in ready-to-move-in, high-end inventory.

MCRE Strengthens Market Position

MCRE has solidified its leadership in Abu Dhabi’s luxury segment, commanding an 11.5% share of the AED 7M+ market. The agency facilitated over AED 700 million in transactions in this bracket, including AED 530 million in the AED 10M+ segment — capturing 11% of that ultra-luxury space.

“Prices in branded residences currently range between AED 2,500 and AED 4,000 per square meter, depending on location,” added Ratskevich. “This is considerably more competitive than comparable properties in Dubai and Ras Al Khaimah, making Abu Dhabi an attractive option for global investors.”

Shifting Investor Demographics

MCRE’s data shows a significant shift in buyer demographics in 2024 and continuing into 2025. While Russian and CIS investors dominated the market early on, interest tapered off in Q2, making way for a growing influx of buyers from the UK, US, UAE, and other GCC nations. Nearly 50% of buyers are end-users, further highlighting market stability and end-use confidence.

Key Locations and Future Outlook

Top-performing areas continue to include Saadiyat Island, Yas Island, Al Reem Island, and Al Hidayriyyat — the latter of which has already exceeded 20% of its full-year sales from 2024.

In response to the growing demand, MCRE has launched Metropolitan Capital Elite, a dedicated luxury real estate office on Saadiyat Island. This new branch will offer specialized services for HNWIs, end-users, and institutional investors focusing on premium and branded assets.

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