Cavendish Maxwell has signaled that demand for residential property is on the rise in Abu Dhabi, where 38,700 new units are set to come to market by 2028.
Following a strong performance in 2024, with 9,700 sales transactions worth a total AED 26bn, the residential real estate sector in the UAE capital is poised for further growth this year and beyond, fuelled by increased demand and strategic Government initiatives, according to Cavendish Maxwell’s latest Abu Dhabi Residential Market Performance Report.
Some 10,800 new units are due to be delivered this year, with another 6,000 in 2026. By the end of 2028, Abu Dhabi’s total residential inventory will be around 313,700, the research shows.
5,200 new homes were delivered in 2024 – mostly at Al Raha Berach, Yas Island, Masdar City and Saadiyat Island – with 275,000 units in total at year-end.
“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.”
Andrew Laver, Associate Partner – Abu Dhabi, Cavendish Maxwell
Average sales prices for apartments rose by nearly 11.5% in 2024, with villa prices up by just over 12.5%. Yas Island commanded the biggest rises at more than 20% for apartments and 13% for villas.
In the rentals market, rates were an average of nearly 13% for apartments and 8% for villas, with Yas Island seeing the highest rises, at 16% and 10% respectively.
Abu Dhabi saw a 34% increase in mortgage transactions in 2024, with nearly 5,000 mortgages, worth a total AED 7.1bn secured. Loans for apartments dominated the mortgage market, up 66% in volume and 55% in value on the previous year. Falling interest rates, increasing investor confidence and attractive financing options from banks fuelled mortgage demand last year.
Almost 40 residential projects were launched in Abu Dhabi last year, bringing 11,000 new units to the market. Al Reem island saw the highest number of new units (2,000), followed by Saadiyat Island (1,800) and Al Bahyah (1,700).
Aldar Properties dominated the market, launching around 4,000 units across 12 projects, reinforcing its position as a leading player in the capital’s real estate sector. The performance of this year’s off plan market will hinge on the number of new launches: a decrease in new projects could lead to a decline in volume and value of off plan transactions.
