Aldar Investment has announced a sweeping Dh3.8 billion exercise to build new homes for the rental sector across Abu Dhabi, underlining its confidence in long-term demand and recurring income streams.

The fund will go into residential developments on Al Shamkha and Yas Island - two areas at the heart of Abu Dhabi's growth plan - while the company also expands into commercial and logistics assets, lifting its develop-to-hold pipeline to Dh17.6 billion.

Chief Executive of Aldar Investment, Jassem Salah Busaibe, said the strategy responds to“strong demand for residential rental units, Grade A commercial space and logistics real estate in Abu Dhabi. The develop-to-hold strategy is a core growth driver, enabling us to significantly expand our diverse portfolio of income-generating assets across the UAE while responding to client requirements for professionally managed commercial, residential, logistics, hospitality, retail and education assets.”

On the residential front, Aldar plans a major community in Al Shamkha offering almost 2,000 units - studios, one-, two- and three-beds - targeting the rental market with lifestyle amenities, open green space and community retail. The location benefits from proximity to Zayed International Airport and fast highway links connecting Abu Dhabi and Dubai.

On Yas Island the developer will deliver 665 rental residences, including a gated community of 217 townhouses and villas aimed at young professionals and families, and 448 apartments linked to the island's staff housing pool.

Aldar's venture coincides with sturdy market fundamentals in Abu Dhabi. According to the Abu Dhabi Real Estate Centre (ADREC), total transaction value in Q1 2025 surged 34.5 per cent year-on-year to over Dh25.3 billion across 6,896 deals, signalling rising investor confidence. Sales activity may have shifted segments, but readiness and location remain vital: research shows the emirate saw only 3,004 residential units delivered in 2024 - 46 per cent below forecasts - even as asking rents jumped 20 per cent with hot zones like Saadiyat Island seeing apartment rents up 31 per cent.

Supply remains tight, especially for well-located, ready-to-move-in rental stock, fueling upward pressure on both rents and capital values. In Q1 2025 the average transaction price for ready homes stood at about Dh2.5 million in Abu Dhabi City, the highest in recent quarters.

On a broader level property prices rose 7.2 per cent annually in Q1 2025, while villa prices climbed 9.7 per cent and apartments 4.5 per cent. Rental yield data remains compelling: for Abu Dhabi apartments yields are estimated at around 5.39 per cent, well above many global peers.

The targeted locations chosen by Aldar align directly with client demand. Yas Island has emerged as a lifestyle-driven residential magnet, benefitting from entertainment, retail and transport connectivity; Al Shamkha is referenced in market commentary as a mid-market growth zone and aligns with emerging supply pipelines in the emirate.

Data shows the broader pipeline in Abu Dhabi is expected to add 10,800 new residential units in 2025 and another 6,000 in 2026 - bringing inventory towards 313,700 by end-2028 from around 275,000 at end-2024. Against that backdrop, the deliver-to-rent strategy appears well timed: rental demand is increasingly driven by both residents relocating for workplace and lifestyle, and investors seeking income-yielding stock in low-tax, high-stability markets.

Aldar's portfolio logic extends well beyond housing. Alongside the residential roll-out the company will build an office park on Yas Island with 47,500 square metres of leasable space across four towers, directly adjacent to Yas Mall and Aldar's Aldar Square headquarters. The logistics arm will add 175,000 square metres of logistics space near the existing Abu Dhabi Business Hub, where occupancy already exceeds 93 per cent. The full suite reinforces the company's thesis of diversified, recurring-income asset classes: residential, commercial and logistics.

According to property consultants, from a market perspective this is a moment of alignment - strong demand, constrained new supply, rising values, and developer-led product aimed at new community-driven living. For residential renters and investors, the narrative is increasingly:“location, readiness and professional management” matter more than speculative price gains alone.

“For Abu Dhabi, the outcome may well be a stronger residential rental ecosystem, longer-term income generation, and communities built for next-gen mobility, connectivity and lifestyle,” they said.

Aldar's move also underlines that Abu Dhabi's residential communities are being re-imagined as rental-centric, professionally managed environments, fitted for a growing expatriate and national population seeking modern living, amenity-rich environments, and access to the city's expanding retail, leisure and transport infrastructure.

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