Abu Dhabi to Deliver 8,000 Homes This Year As Real Estate Sales Hit AED20.5bn
Abu Dhabi is preparing to add 8,000 new residential units by the end of the year as strong demand continues to push both prices and rents higher, according to real estate consultancy Cavendish Maxwell.
Upcoming Supply Pipeline
The consultancy reported that an additional 12,800 homes are scheduled for handover in 2026; however, actual completion numbers may fall below expectations, based on previous years. Approximately 2,700 apartments, villas, and townhouses were completed in the first nine months of 2025.
Looking further ahead, Abu Dhabi has 12,400 homes planned for 2027 and 21,400 for 2028. However, Cavendish Maxwell noted that handovers will likely be phased to avoid sudden spikes in supply.
“Based on recent handover trends, we could see fewer than planned properties being delivered in the next couple of years,” said Andrew Laver, Associate Director at Cavendish Maxwell in Abu Dhabi. “This staggered approach allows the market to absorb new supply gradually and prevents sudden increases in available stock.”
Off-Plan Market Continues to Lead Activity
Sales activity stayed robust in Q3, with over 6,400 residential transactions recorded across apartments, villas, and townhouses. Off-plan purchases dominated the market, with 5,100 apartment sales, fueled largely by demand from young professionals and smaller households.
Villas and townhouses recorded an 8.3% quarter-on-quarter rise in sales, along with a modest 0.3% increase compared to the same period last year. Limited new villa launches prompted some buyers to consider apartment options.
Total sales value reached AED 20.5 billion between July and September, with AED 16.3 billion coming from off-plan activity.
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Prices and Rents Continue to Rise
Average apartment prices increased nearly 15% year-on-year, with Yas Island and Al Reem Island leading growth. Villa prices rose just under 12%, supported by demand in Yas Island and Saadiyat Island.
Rental rates also climbed:
- Apartment rents grew 14.2% on average, with some areas experiencing increases of up to 25% on Yas Island.
- Villa rents rose 5.1% on average.
Laver noted that Abu Dhabi’s property market remains supported by solid investor interest, ongoing economic diversification, population growth, and the appeal of master-planned communities.
“Looking ahead, the market is expected to remain resilient,” he said. “We 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.”
These insights are part of Cavendish Maxwell’s Q3 2025 Abu Dhabi Residential Market Performance report.
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