Abu Dhabi city plans to deliver 8,000 new residential units by year end

Abu Dhabi city plans to deliver 8,000 new residential units by the end of 2025, with another 12,800 scheduled for 2026, research from real estate advisory Cavendish Maxwell showed on Thursday.

Around 2,700 apartments, townhouses and villas were handed over in the first nine months of the year amid continued demand from end-users and investors.

A further 12,400 units are slated for 2027 and 21,400 for 2028, although actual handovers may trail initial forecasts.

“Based on recent handover trends, we could see fewer-than-planned properties being delivered in the next couple of years. This staggered approach, which is historically typical for Abu Dhabi, allows the market to absorb new supply gradually and prevents sudden increases in available stock,” said Andrew Laver, associate director at Cavendish Maxwell Abu Dhabi.

Q3 sees a rise in Abu Dhabi residential sales

Sales activity strengthened in the third quarter, with more than 6,400 residential transactions recorded across apartments, villas and townhouses, led by off-plan deals.

Apartment sales reached 5,100 units, supported by investor appetite and demand from young professionals and smaller households.

Villa and townhouse sales increased 8.3 per cent from the previous quarter and 0.3 per cent year on year as limited supply steered buyers towards apartments.

The total value of homes sold in the period hit Dhs20.5bn, including Dhs16.3bn from off-plan deals.

Apartment prices rose nearly 15 per cent year on year in Q3, with Yas Island and Al Reem Island recording the sharpest gains. Average villa prices climbed just under 12 per cent over the same period, led by Yas Island and Saadiyat Island.

Rental prices also moved higher, with apartment rents up an average of 14.2 per cent and as much as 25 per cent on Yas Island. Villa rents increased 5.1 per cent on average.

“Abu Dhabi City’s residential real estate market performed strongly in Q3, on the back of strong demand from investors. Looking ahead, the market is expected to remain resilient, with strong economic fundamentals, ongoing diversification, steady population growth and the increasing appeal of newer master-planned communities continuing to support demand.

“We also expect to see both sales and rental prices to rise further in the near term, although the pace of growth will vary depending on location as new supply enters the market,” Laver said.

This article was originally published in Arabian Business.