Demand for residential properties in Abu Dhabi continues to grow with 38,700 new units set to come to the real estate market by 2028. Following a strong performance in 2024, with 9,700 sales transactions worth a total of AED26 billion, the residential real estate sector in the UAE’s capital is poised for further growth this year and beyond, fuelled by increased demand and strategic government initiatives.
“The residential sector in Abu Dhabi is experiencing steady growth, driven by increased demand from local and international investors as well as strategic Government initiatives such as residency incentives,” stated Andrew Laver, Cavendish Maxwell associate partner, Abu Dhabi.
10,800 new units due in 2025
According to Cavendish Maxwell’s latest Abu Dhabi report, around 10,800 new units are due to be delivered this year, with another 6,000 in 2026.
By the end of 2028, Abu Dhabi’s total residential inventory will reach around 313,700. The report also revealed that 5,200 new homes were delivered in 2024, mostly at Al Raha Berach, Yas Island, Masdar City and Saadiyat Island – with 275,000 units in total at year-end.
“Sustainable development and innovative housing solutions will be key in shaping the future of capital’s residential property market, with rising demand and price appreciation further boosted by infrastructure expansion and enhanced community offerings,” added Laver.
Apartment prices rise 11.5 percent in 2024
Abu Dhabi’s real estate sector saw average sales prices for apartments rise by nearly 11.5 percent in 2024, with villa prices up by just over 12.5 percent. Yas Island commanded the biggest rises at more than 20 percent for apartments and 13 percent for villas.
In the rental market, rates were an average of nearly 13 percent for apartments and 8 percent for villas, with Yas Island seeing the highest rises, at 16 percent and 10 percent, respectively. Cavendish Maxwell predicts further gradual increases this year.
Abu Dhabi also saw a 34 percent increase in mortgage transactions in 2024, with nearly 5,000 mortgages, worth a total of AED7.1 billion secured. Loans for apartments dominated the mortgage market, up 66 percent in volume and 55 percent in value on the previous year.
Falling interest rates, increasing investor confidence and attractive financing options from banks fuelled mortgage demand last year.
Demand for ready properties surges 50 percent
Demand for ready properties across Abu Dhabi’s real estate sector surged by almost 50 percent year-on-year in 2024, while off-plan transactions saw a decline of 13 percent, largely due to a reduction in new project launches.
Of the 9,700 sales transactions last year, 75 percent were for apartments, up 63 percent on the previous year. Apartment sales transactions reached 7,300 with a total value of AED12.6 billion. In 2024, 2,400 villas and townhouses with a total value of AED13.4 billion were purchased, a drop of 44 percent in volume and value, driven by limited new project launches.
However, demand for ready villas and townhouses was up 47 percent and 26 percent, respectively, reflecting growing confidence among investors and end-users in the completed property market.
40 residential projects launched in 2024
Almost 40 residential projects were launched in Abu Dhabi’s real estate market last year, bringing 11,000 new units to the market. Al Reem Island saw the highest number of new units, followed by Saadiyat Island and Al Bahyah.
Aldar Properties dominated the market, launching around 4,000 units across 12 projects, reinforcing its position as a leading player in the capital’s real estate sector. The performance of this year’s off-plan market will depend on the number of new launches. A decrease in new projects could lead to a decline in the volume and value of off-plan transactions.
