Abu Dhabi to Deliver 8,000 New Homes by Year-End as Property Demand Surges

Despite larger pipelines for 2027 and 2028, the firm expects actual handovers to come in below earlier projections, noting that Abu Dhabi’s historically staggered delivery approach helps the market absorb new supply without sudden spikes in inventory.

The capital recorded more than 6,400 residential transactions in the third quarter, its strongest quarter on record. Off-plan sales dominated activity, contributing 5,100 transactions and Dh16.3 billion of the Dh20.5 billion in total residential sales. Villas and townhouses also saw steady interest, with sales rising 8.3 per cent from the previous quarter.

Prices continued to climb across key districts. Apartment values rose nearly 15 per cent year-on-year, driven by activity on Yas Island and Al Reem Island, while villa prices increased almost 12 per cent, supported by demand on Yas and Saadiyat Island. Rental rates showed similar momentum, with apartment rents up 14.2 per cent and prime locations recording gains of up to 25 per cent. Villa rents rose 5.1 per cent as occupancy remained tight.

Analysts attribute the market’s strength to solid economic fundamentals, including a revised UAE GDP forecast of 4.9 per cent for 2025 and an IMF projection of 6 per cent growth for Abu Dhabi. Continued investment by ADQ, Mubadala and the Abu Dhabi Investment Office is also bolstering market confidence.

Cavendish Maxwell said the outlook for the residential sector remains positive, with steady population growth, ongoing diversification and the rise of newer master-planned communities expected to support further price and rental increases in the near term. The next phase of activity will likely depend on controlled supply delivery and sustained investor inflows well into 2026.