Abu Dhabi to Add 11,900 Homes in 2025 Amid Rising Demand

ABU DHABI – July 7, 2025 – The Abu Dhabi residential real estate market is set to receive a significant influx of new properties by the end of 2025, with 11,900 new homes expected to be delivered. However, according to a recent report by Cavendish Maxwell, the UAE capital’s real estate advisory firm, the growing demand for housing may outstrip this supply.

Market Dynamics and Price Trends

In the first quarter of 2025, Abu Dhabi’s residential market recorded 1,300 transactions totaling approximately USD 1 billion (AED 3.7 billion). The average sales price per property reached to USD 680,000 (AED 2.5 million), marking the highest quarterly figure since Q1 2022.

Notably, apartments saw a 12.3% year-on-year price increase, while villas and townhouses experienced a 12.5% rise. Quarter-on-quarter, apartment prices grew by 4.1%, and villas/townhouses by 2.4%.

Demand for Ready Properties

The demand for ready-to-move-in properties remains robust, with 900 transactions valued at approximately USD 625 million (AED 2.3 billion). This trend indicates a preference among buyers for immediate occupancy, reflecting a shift towards the secondary market.

Mortgage Activity

Mortgage activity also showed positive signs, with around USD 460 million (AED 1.7 billion) in loans across 800 transactions. Notably, mortgages for villas and townhouses increased by nearly 60% year-on-year, underscoring the growing interest in these property types.

Market Outlook

Cavendish Maxwell’s Associate Director for Abu Dhabi, Andrew Laver, highlighted a significant shift towards the secondary residential market, driven by sustained demand for ready homes and fewer off-plan project launches. The firm anticipates continued price appreciation in the coming months, supported by investor confidence, end-user interest, and a stable macroeconomic environment.

While the delivery of 11,900 new homes by the end of 2025 is a positive development, the potential for demand to outpace supply could lead to further price increases and heightened competition in Abu Dhabi’s residential real estate market. Investors and prospective homeowners should stay informed about market trends and consider their options carefully.

This article was originally published in Property News International.