Abu Dhabi is set to unveil 8,000 new residential units by the end of this year, signaling a robust response to heightened demand in the real estate sector. This strategic development comes amid a surge in property prices and rental rates, as reported by real estate consultancy Cavendish Maxwell. The planned delivery of these homes reflects the ongoing evolution within the market, which is expected to continue thriving as demand persists.
According to Cavendish Maxwell, an additional 12,800 residential units are slated for handover in 2026. However, the actual delivery might not meet these projections based on historical trends. During the first three quarters of 2025, around 2,700 apartments, villas, and townhouses were successfully completed, indicating a consistent level of activity in the sector.
Looking ahead, Abu Dhabi has ambitious plans for 12,400 homes in 2027 and 21,400 in 2028. The consultancy highlighted that deliveries will likely be staggered to control the influx of new properties and prevent market saturation. “Based on recent handover trends, we could see fewer than planned properties being delivered in the next couple of years,” noted Andrew Laver, Associate Director at Cavendish Maxwell in Abu Dhabi. “This staggered approach allows the market to absorb new supply gradually and prevents sudden increases in available stock.”
Off-Plan Sales Drive Market Activity
Sales activity has remained strong throughout the third quarter of the year, with over 6,400 residential transactions recorded across various categories, including apartments, villas, and townhouses. Off-plan transactions have been particularly prominent, with approximately 5,100 apartment sales taking place, driven largely by young professionals and smaller families seeking housing options.
Villas and townhouses also contributed to positive market dynamics, exhibiting an 8.3% increase in sales compared to the previous quarter, along with a modest year-on-year rise of 0.3%. The limited availability of new launches has nudged some buyers toward apartments, amplifying the demand in this segment.
The total sales value reached an impressive AED 20.5 billion between July and September. Notably, off-plan acquisitions accounted for a significant AED 16.3 billion, showcasing strong investor interest in new developments.
Price trends reflect this heightened demand, with average apartment prices soaring nearly 15% year on year in Q3. Areas like Yas Island and Al Reem Island have recorded the most substantial increases in property values. Meanwhile, villa prices climbed by just under 12%, predominantly led by rising values in Yas Island and Saadiyat Island.
Rents have also seen upward movements, with apartment rents increasing, on average, by 14.2%, reaching growth rates of up to 25% in high-demand areas like Yas Island. Villa rents, meanwhile, have risen by an average of 5.1%.
Laver assured that the market will continue to benefit from a strong appetite among investors, ongoing economic diversification, and population growth, alongside the allure of expansive master-planned communities. “Looking ahead, the market is expected to remain resilient,” he stated. “We expect to see both sales and rental prices rise further in the near term, although the pace of growth will vary depending on location as new supply enters the market.”
The insights provided are part of Cavendish Maxwell’s Q3 2025 Abu Dhabi Residential Market Performance report, emphasizing the dynamic changes currently shaping the local property landscape.