Abu Dhabi’s real estate market is set to see the delivery of 38 700 new residential units by 2028, responding to a surge in demand for housing. The sector experienced a robust performance in 2024, recording 9 700 sales transactions valued at AED26 billion. This growth is expected to continue this year and beyond, driven by increasing demand from both local and international investors, along with supportive government initiatives.

According to Andrew Laver, an associate partner at Cavendish Maxwell, the residential sector in Abu Dhabi is experiencing steady growth. He noted that this growth is fueled by heightened demand and strategic government initiatives such as residency incentives. This year alone, around 10 800 new units are anticipated to be delivered, with an additional 6 000 set for completion in 2026.

By the end of 2028, the total residential inventory in Abu Dhabi is projected to reach approximately 313,700 units.

In terms of pricing, Abu Dhabi’s real estate sector saw average sales prices for apartments increase by nearly 11.5 percent in 2024, while villa prices rose by just over 12.5 percent. Yas Island experienced the most significant increases, with apartment prices up by more than 20 percent and villa prices rising by 13 percent. The rental market also reflected this upward trend, with average rates increasing by nearly 13 percent for apartments and 8 percent for villas, particularly on Yas Island.

The mortgage market also showed strong growth, with a 34 percent increase in transactions in 2024, totaling nearly 5 000 mortgages worth AED7.1 billion. Loans for apartments were particularly dominant, experiencing a 66 percent increase in volume and a 55 percent increase in value compared to the previous year. This surge was attributed to falling interest rates, rising investor confidence, and appealing financing options offered by banks.

Demand for ready properties soared by almost 50 percent year-on-year in 2024, while off-plan transactions declined by 13 percent due to fewer new project launches. Out of the total 9 700 sales transactions last year, 75 percent were for apartments, which accounted for AED12.6 billion in sales. Meanwhile, the sale of villas and townhouses fell by 44 percent in both volume and value, with demand for ready villas up by 47 percent and townhouses by 26 percent, indicating growing confidence among investors in completed properties.

In 2024, nearly 40 residential projects were launched in Abu Dhabi, adding 11 000 new units to the market. Al Reem Island led in new unit availability, followed by Saadiyat Island and Al Bahyah. Aldar Properties emerged as a key player, launching around 4 000 units across 12 projects, solidifying its position in the capital’s real estate landscape. The performance of the off-plan market this year will largely depend on the number of new project launches, as a decrease in these could lead to a decline in off-plan transactions.