Abu Dhabi’s residential property market is witnessing steady expansion, with the forecasted addition of 38,700 new units by 2028. The market is buoyed by an increase in demand from both local and international investors, along with strategic government measures aimed at attracting further growth. A solid performance in 2024, marked by 9,700 sales transactions worth AED 26 billion, has set the stage for continued development in the years ahead.
“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,” said Andrew Laver, Associate Partner at Cavendish Maxwell in Abu Dhabi.
According to Cavendish Maxwell’s latest Abu Dhabi market report, around 10,800 new units are scheduled to be delivered this year, followed by 6,000 more in 2026. By 2028, Abu Dhabi’s residential inventory is expected to reach approximately 313,700 units. In 2024, the market saw the delivery of 5,200 new homes, primarily in key areas like Al Raha Beach, Yas Island, Masdar City, and Saadiyat Island, bringing the total number of units to 275,000 by the end of the year.
“Sustainable development and innovative housing solutions will be key in shaping the future of the capital’s residential property market. Rising demand and price appreciation, further boosted by infrastructure expansion and enhanced community offerings, will play a significant role,” added Laver.
The market has also witnessed price growth in both the sales and rental sectors. Average sales prices for apartments rose by nearly 11.5 percent in 2024, with villa prices increasing by just over 12.5 percent. Yas Island recorded the largest increases, with apartment prices rising more than 20 percent and villa prices seeing a 13 percent increase. On the rental side, apartment rates increased by nearly 13 percent on average, while villa rents went up by 8 percent, with Yas Island again seeing the highest rises—16 percent for apartments and 10 percent for villas. Cavendish Maxwell predicts that these gradual increases will continue throughout 2025.
Abu Dhabi also saw a significant 34 percent rise in mortgage transactions in 2024, with nearly 5,000 mortgages totaling AED 7.1 billion secured. Apartments dominated the mortgage market, with a 66 percent increase in volume and 55 percent in value compared to the previous year. This surge in mortgage demand can be attributed to falling interest rates, increased investor confidence, and attractive financing options from banks.
In terms of property types, demand for ready properties surged by almost 50 percent year-on-year in 2024. Conversely, off-plan transactions saw a 13 percent decline, mainly due to a reduction in new project launches. Out of the 9,700 sales transactions in 2024, 75 percent were for apartments, marking a 63 percent increase from the previous year. Apartment sales transactions reached 7,300 with a total value of AED 12.6 billion. Villa and townhouse sales, totaling 2,400 units valued at AED 13.4 billion, dropped by 44 percent in both volume and value, primarily due to the limited number of new project launches.
However, demand for ready villas and townhouses grew significantly, with sales up 47 percent and 26 percent, respectively. This increase indicates rising investor confidence in completed properties.
Nearly 40 new residential projects were launched in Abu Dhabi’s real estate market last year, bringing 11,000 new units to the market. Al Reem Island, Saadiyat Island, and Al Bahyah were the areas that saw the most new units. Leading the market was Aldar Properties, which launched around 4,000 units across 12 projects, solidifying its role as a major player in Abu Dhabi’s real estate sector.
The future performance of Abu Dhabi’s off-plan market will hinge on the number of new projects launched in the coming years. A slowdown in new project launches could lead to a reduction in the volume and value of off-plan transactions.
