Demand for residential properties is rising in Abu Dhabi, and by 2028, 38,700 new units should be on the market.
After delivering strong performance in 9,700 sales transactions worth 26 billion AED ($7.1 billion) in 2024, the real estate sector is further growth in UAE capital this year.
According to the latest report from Cavendish Maxwell, the Abu Dhabi Housing Market Performance Report by Cavendish Maxwell, optimism is heated by increased demand and strategic government initiatives.
Abu Dhabi real estate supply
This year, approximately 10,800 units will be available in 2026. Overall inventory in Abu Dhabi will reach around 313,700 by the end of 2028.
5,200 new homes were delivered in 2024 mainly to Al Raha Berach, Yas Island, Masdar City and Saadiyat Island, with a total of 275,000 units at the end of the year.
Andrew Laver, Cavendish Maxwell Associate Partner, Abu Dhabi, said: “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.
“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.”
Average sales prices for flats increased by approximately 11.5 percent in 2024, while villa prices increased by slightly more than 12.5 percent.
Yas Island saw the most increases, with more than 20% for flats and 13% for villas.
In the rental sector, rates were up an average of roughly 13% for apartments and 8% for villas, with Yas Island witnessing the greatest increases, at 16% and 10%, respectively.
Cavendish Maxwell forecasts further moderate gains this year.
Demand for ready properties increased by nearly 50% year on year in 2024, while off-plan transactions decreased by 13%, owing primarily to a fall in new project launches.
Of the 9,700 sales transactions last year, 75% were for flats, up 63% from the previous year.
There were 7,300 flat sales deals, totaling AED12.6 billion ($3.4 billion).
In 2024, 2,400 villas and townhouses were purchased for a total of AED13.4 billion ($3.6 billion), representing a 44% decrease in volume and value due to the limited number of new project launches.
However, demand for ready villas and townhouses increased by 47% and 26%, respectively, indicating growing investor and end-user confidence in the completed property market.
In 2024, Abu Dhabi had a 34% increase in mortgage transactions, with approximately 5,000 mortgages totaling AED7.1 billion ($1.9 billion) obtained.
Loans for flats dominated the mortgage market, increasing by 66% in volume and 55% in value over the previous year.
According to Cavendish Maxwell, falling interest rates, increased investor confidence, and attractive financing choices from banks drove mortgage demand last year.
Almost 40 residential developments were launched in Abu Dhabi last year, adding 11,000 additional apartments to the market.
Al Reem Island received the most new units (2,000), followed by Saadiyat Island (1,800) and Al Bahyah (1,700).
Aldar Properties dominated the market, launching about 4,000 units across 12 projects and cementing its position as a key participant in the capital’s real estate sector.
The performance of this year’s off plan market will be determined by the number of new launches: a fall in new projects may result in a decrease in the volume and value of off plan sales.
