The demand for residential properties in Abu Dhabi has developed on the real estate market with 38,700 new units by 2028. After a strong performance in 2024, the 9,700 sales transactions are AED26 billion, the residential real estate market in the UAE’s capital is positioned for significant expansion this year and beyond, backed by growing demand and strategic government initiatives.
“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,” stated Andrew Laver, Cavendish Maxwell associate partner, Abu Dhabi.
10,800 new units scheduled for 2025
Approximately 10,800 new units with an additional 6,000 people will be offered this year, according to Cavendish Maxwell’s latest Abu Dhabi report.
By the end of 2028, the inventory of the entire residential buildings in Abu Dhabi reached approximately 313,700. The report also showed that 5,200 new homes in 2024 were delivered primarily to Al-Raha Berach, Yas Island, Masdar City and Sadyat Island.
“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,” added Laver.
Apartment prices rise 11.5 percent in 2024
The real estate division of Abu Dhabi recorded an average selling price for apartments by almost 11.5% in 2024, with villa prices rising slightly by 12.5%. Yas Island has maximized its maximum 20% in apartments and 13% in villas.
In the rental market, apartment rates were almost 13% and 8%, with YAS Island recording the highest increase at 16% and 10%. Cavendish Maxwell is forecasting a more gradual increase this year.
Abu Dhabi also recorded an increase in mortgage transactions by 34% in 2024, with nearly 5,000 people mortgages worth a total of AED 7.1 billion. Apartment loans dominated the mortgage market. This was 66% or 55% of the previous year.
Interest rate disposals, increased investor confidence, and banks’ attractive financing options have fueled demand for mortgages last year.
Demand for standby properties will be extended by 50%
Demand for completed property in the Abu Davies real estate sector rose almost 50% in 2024 compared to the previous year, while unplanned transactions received a 13% decline.
Of last year’s 9,700 sales transactions, 75% were apartments and 63% compared to the previous year. The apartment sales transaction reached 7,300, totaling AED 17 billion. In 2024, 2,400 villas and townhouses were purchased total value of AED 13.4 billion. This is due to the 44% and 44% values, which means that new projects are limited to launch.
However, demand for standby villas and townhouses increased by 26% to 47%. This reflects the growing trust among investors and end users in the completed real estate market.
