Abu Dhabi to deliver 8,000 new homes by year-end, with 12,800 scheduled for 2026

Dubai: Abu Dhabi City plans to deliver 8,000 new residential units by the end of 2025 with another 12,800 scheduled for 2026, according to new research by Cavendish Maxwell.

The consultancy reported that around 2,700 apartments, townhouses and villas were completed in the first nine months of the year, supported by sustained demand from both end-users and investors. While 12,400 new homes are in the pipeline for 2027 and over 21,000 for 2028, the firm expects deliveries to lag early projections.

“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, Cavendish Maxwell Abu Dhabi.

Record transaction volumes in Q3

Abu Dhabi posted more than 6,400 residential unit transactions in the third quarter, marking its strongest performance on record. The off-plan segment dominated the market, with apartment sales accounting for 5,100 deals. Laver noted that investor activity and end-user demand remained the key drivers.

Sales of villas and townhouses rose 8.3% from the previous quarter and 0.3% year-on-year, supported by limited new supply and shifting buyer preference toward apartments. Total residential transactions reached Dh20.5 billion in Q3, with Dh16.3 billion originating from off-plan purchases.

Prices climb across prime districts

Apartment prices rose nearly 15% on average compared with the same period last year, led by Yas Island and Al Reem Island. Villa prices increased almost 12%, driven by consistent demand in Yas and Saadiyat Island.

Rental markets followed the same trend. Apartment rents increased by 14.2% year-on-year, with prime locations such as Yas Island recording growth of up to 25%. Villa rents rose by 5.1% as steady inflows of professionals maintained tight occupancy rates.

Cavendish Maxwell attributed the continued strength in Abu Dhabi’s residential sector to solid macroeconomic conditions. The UAE’s 2025 GDP forecast has been revised upward to 4.9%, while the IMF projects a 6% expansion for Abu Dhabi, supported by non-oil diversification and strong real estate activity.

The report highlights the role of major government-led investment entities in sustaining growth. ADQ and Mubadala are actively deploying capital across strategic sectors, while the Abu Dhabi Investment Office continues to attract foreign direct investment, enhancing market confidence.

Outlook remains positive

Laver said the outlook for the residential market remains strong. “Abu Dhabi City’s residential real estate market performed strongly in Q3, on the back of 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,” he said.

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

Market analysts suggest the next phase of activity will hinge on controlled delivery schedules and sustained capital inflows. With continued population growth and strategic investment at the macro level, Abu Dhabi’s property market appears set to maintain steady momentum well into 2026.