According to recent research by renowned real estate consulting and property consultant Cavendish Maxwell, Abu Dhabi City expects to provide 8,000 new residential units by the end of 2025, with an additional 12,800 on the way in 2026.
According to the company, there was consistent demand from investors and end users for the 2,700 apartments, townhouses, and villas that were put up for sale in the UAE capital during the first nine months of the year.
According to Cavendish Maxwell’s most recent insight and analysis on Abu Dhabi’s residential real estate market, actual deliveries may fall short of initial projections, even if an additional 12,400 units are planned for 2027 and 21,400 for 2028.
Andrew Laver, Associate Director, Cavendish Maxwell Abu Dhabi, said: “Based on recent handover trends, we could see fewer-than-planned properties being delivered in the next couple of years. This staggered approach – which is historically typical for Abu Dhabi – allows the market to absorb new supply gradually and prevents sudden increases in available stock.”
With almost 6,400 residential unit transactions in Q3 of this year, including apartments, villas, and townhouses, Abu Dhabi had a good sales performance, with the off-plan category dominating. 5,100 of all transactions involved the selling of apartments, which was fueled by investor interest and strong demand from young professionals and smaller families. Sales of townhouses and villas increased 0.3% year over year and 8.3% from Q2, with few new releases driving purchasers toward apartments.
Between July and September, residential unit sales totaled AED 20.5 billion, of which AED 16.3 billion came from off-plan purchases.
In comparison to the same period in 2024, apartment prices increased by about 15% on average in Q3, with Yas Island and Al Reem Island seeing the largest rises. Yas Island and Saadiyat Island led the field in villa prices, which increased by an average of little less than 12% annually.
Apartment rents increased by an average of 14.2% in Q3, with Yas Island seeing an increase of up to 25%. The average increase in villa rents was 5.1%.
Laver added: “Abu Dhabi City’s residential real estate market performed strongly in Q3, on the back of strong demand from investors. Looking ahead, the market is expected to remain resilient, with strong economic fundamentals, ongoing diversification, steady population growth and the increasing appeal of newer master planned communities continuing to support demand. We also expect to see both sales and rental prices to rise further in the near term, although the pace of growth will vary depending on location as new supply enters the market.”