As the expanding expat community consumes new residential supply and lowers vacancy rates, rents in Abu Dhabi are rising at a double-digit rate. Rental costs in the capital are predicted to keep rising because to supply issues, an influx of smaller families and other foreigners, and project deliveries that fall short of original goals.
Apartment rental rates in Abu Dhabi continued to soar in the third quarter of 2025, with a citywide year-over-year gain of 14.2%, according to recent data by Cavendish Maxwell.
“Strong population growth, particularly among expatriates and the expanding workforce, supported robust rental demand across the Emirate. Although new apartment supply entered the market during the year, high absorption rates kept vacancy levels low, maintaining upward pressure on rents. With supply expected to remain constrained in the near term, rental rates are likely to increase further,” the real estate consultancy said in its latest study on the UAE capital’s market.
Rental values saw significant rise in the third quarter of 2025, according to Haider Tuaima, managing director and head of real estate research at ValuStrat. The rental index increased by 2.3% quarterly and 9.3% annually. Villa rents increased at a rate of 5.6% each year, while apartment rents increased at a rate of 12.8%.
Cavendish Maxwell claims that depending on the arrival of new supplies and changing tenant preferences, the rate of growth may differ around the city.
In Q3 2025, villa rents in Abu Dhabi increased by 5.1% year over year, but more slowly than apartment rents.
“Demand for villas remained solid across the Emirate, though performance differed by community. Most areas recorded annual rental growth, while several neighbourhoods saw rents hold largely steady,” it added.
New residential units in Abu Dhabi
According to Cavendish Maxwell’s projections, developers in Abu Dhabi will produce 8,000 new residential units by the end of 2025, with an additional 12,800 on the way in 2026.
Although further 12,400 units are anticipated for 2027 and 21,400 for 2028, actual deliveries might not match initial projections.
“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,” said Andrew Laver, associate director, Cavendish Maxwell Abu Dhabi.
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.
Only 10.3% of the anticipated 2025 pipeline had been delivered as of September, according to Haider Tuaima, indicating that the availability of new dwellings remained limited. However, it is anticipated that over the following five years, some 33,000 new residential units will be finished.
Strong property sales in Q3
With almost 6,400 residential unit transactions in Q3 of this year, including apartments, villas, and townhouses, Abu Dhabi had a robust sales performance, with the off-plan category dominating. Of all transactions, 5,100 involved the sale of apartments. Due to a lack of new developments, sales of villas and townhouses increased by 0.3% year over year, with buyers choosing apartments instead.
Between July and September, residential unit sales totaled Dh20.5 billion, of which Dh16.3 billion came from off-plan purchases.
We expect 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,” said Andrew Laver.
