Abu Dhabi’s Real Estate Market Poised for Strong Growth with 38,700 New Homes by 2028

Demand for residential properties in Abu Dhabi continues to rise, with 38,700 new units expected to be delivered by 2028.

In 2024 alone, the market recorded 9,700 sales transactions worth AED 26 billion ($7.1 billion). With increasing demand and strategic government initiatives, the UAE capital’s real estate sector is set for further expansion this year.

Abu Dhabi’s Real Estate Supply Outlook

According to the latest Abu Dhabi Housing Market Performance Report by Cavendish Maxwell, market confidence remains strong. Approximately 10,800 new units are expected to be delivered this year, bringing the total residential stock in Abu Dhabi to around 313,700 units by the end of 2028.

In 2024, 5,200 new homes were completed, primarily in Al Raha Beach, Yas Island, Masdar City, and Saadiyat Island, bringing the total housing stock to 275,000 units.

Andrew Laver, Associate Partner at Cavendish Maxwell in Abu Dhabi, stated:
"Abu Dhabi’s residential market continues to experience steady growth, driven by strong demand from local and international investors, alongside government initiatives such as long-term residency incentives. Sustainable development and innovative housing solutions will be crucial in shaping the future of the capital’s property market, while infrastructure expansion and enhanced community amenities will further fuel demand and price appreciation."

Price & Rental Market Trends

In 2024, apartment sales prices rose by approximately 11.5%, while villa prices increased by just over 12.5%.

Yas Island saw the highest appreciation, with apartment prices surging by more than 20% and villa prices rising by 13%.

Rental prices also climbed, with apartment rents increasing by an average of 13% and villa rents by 8%. Yas Island led the market again, with rental rates rising by 16% for apartments and 10% for villas. Moderate price increases are expected to continue this year.

Transaction Trends

Demand for ready properties surged nearly 50% year-over-year in 2024, while off-plan transactions declined by 13%, primarily due to a slowdown in new project launches.

Of the 9,700 transactions last year, 75% were for apartments—a 63% increase from the previous year. Apartment sales totaled 7,300 transactions, valued at AED 12.6 billion ($3.4 billion).

Meanwhile, 2,400 villas and townhouses were sold for a total of AED 13.4 billion ($3.6 billion), reflecting a 44% drop in both volume and value due to limited new launches. However, demand for completed villas and townhouses rose by 47% and 26%, respectively, highlighting growing investor and end-user confidence in the ready property market.

Mortgage Market Performance

Mortgage transactions in Abu Dhabi grew by 34% in 2024, with approximately 5,000 loans issued, totaling AED 7.1 billion ($1.9 billion). Apartments dominated the mortgage segment, with loan volumes increasing by 66% and loan values rising by 55% year-over-year.

According to Cavendish Maxwell, declining interest rates, stronger investor confidence, and attractive financing options from banks contributed to the surge in mortgage demand.

New Developments & Future Outlook

Nearly 40 new residential projects were launched in Abu Dhabi last year, adding approximately 11,000 new units to the market.

Al Reem Island led the way with 2,000 new units, followed by Saadiyat Island (1,800 units) and Al Bahyah (1,700 units).

Aldar Properties remained the dominant developer, launching nearly 4,000 units across 12 projects, further solidifying its market leadership.

The performance of the off-plan market in 2025 will depend on the number of new launches. A slowdown in new project releases may lead to a decline in both transaction volume and value.