Abu Dhabi, UAE — In 2025, average annual rental prices in Abu Dhabi saw a significant increase across most housing categories, except for studios in the Corniche area, which saw a slight decline. According to data from the 'Bayut' platform, the average annual rent in the 'Shatt Al Raha' area increased by 25.93% to 68,000 dirhams, while on Reem Island it rose by 24.07% to 67,000 dirhams. Conversely, the average studio rent in the Corniche area decreased by 2.82% to 69,000 dirhams. In the one-bedroom apartment category, the 'Al Markaziyah' district led with the highest average annual rent at 116,000 dirhams, a 28.89% increase from 2024. It was followed by 'Shatt Al Raha' at 97,000 dirhams (+31.08%) and Yas Island at 95,000 dirhams (+18.75%). For two-bedroom apartments, 'Al Markaziyah' also topped the list with an average of 153,000 dirhams per year (+21.43%), followed by 'Shatt Al Raha' (140,000 dirhams, +20.69%) and Yas Island (137,000 dirhams, +11.38%). The CEO of 'Lorive Real Estate', Mohamed Abdelhaleem, stated: '2024 marked the beginning of a significant rental price increase due to a shortage of available units, and 2025 was the year of a major leap, with rents rising by nearly 20%, especially for studios and one-bedroom units that are in high demand.' He attributed the rise to population growth from new companies and hiring, as well as an increasing number of families residing in the emirate. Mustafa Mahros, Sales Manager at 'Seattle & Middle East Real Estate', noted that the growth is driven by the emirate's development, security, and stability. He added that despite new projects, the limited number of ready-to-move-in units in prime locations cannot meet the high demand, leading to price increases due to competition among tenants. Experts predict that in 2026, limited supply and high demand could drive rental prices to record levels.
