Cavendish Maxwell has reported that Abu Dhabi is set to add 11,900 new homes to its residential real estate inventory by the end of 2025. However, population growth and increased investor interest could mean that demand for housing outpaces supply.
The UAE capital delivered 600 new residential properties in Q1 this year, meaning a total 12,500 new homes will come to the market by the end of 2025. Another 7,000 are in the pipeline for Abu Dhabi in 2026.
Cavendish Maxwell’s latest report on the Abu Dhabi residential real estate sector also shows that in Q1 2025, sales values reached AED 3.7bn across 1,300 transactions. Buyers paid an average AED 2.5m per property – the highest quarterly value since Q1 2022.
Additionally, apartment prices were up 12.3% on last year, and 4% quarter-on-quarter; villas were 12.5% and 2.4% respectively. Ready property transactions increased year-on-year and are most in demand, accounting for 900 transactions worth a total AED 2.3bn. Mortgage values hit AED 1.7bn across 800 loans.
While ready property volumes and values were up compared to the same period last year, they were down quarter-on-quarter, potentially reflecting reduced activity post-festive season and less trading during Ramadan and Eid.
“The UAE capital is seeing a notable shift towards the secondary residential market, with sustained demand for ready homes and fewer off-plan project launches compared to previous quarters. The average sales transaction reached a record AED2.5 million in Q1, with encouraging signs of broader price appreciation – a trend we expect to continue in the months ahead. Robust bank activity and strong project delivery during the early part of the year underscore the resilience and dynamism of the Abu Dhabi real estate sector.”
Andrew Laver, Associate Director – Abu Dhabi, Cavendish Maxwell
