Abu Dhabi is on track to deliver roughly 8,000 new residential units by the end of 2025, driven by a wave of strong demand and buoyant off-plan sales across the city's housing market. Real-estate consultancy Cavendish Maxwell reports that developers completed around 2,700 apartments, villas and townhouses during the first nine months of the year, and have lined up an additional 12,800 units for handover in 2026.

Market activity intensified as more than 6,400 residential transactions were recorded in the third quarter, with apartments accounting for roughly 5,100 of those deals. That surge reflects growing investor interest as well as demand from younger professionals and smaller households seeking ownership rather than rent. At the same time, villa and townhouse sales rose modestly compared with the previous quarter, as limited new supply nudged many buyers toward apartment living.

Homebuyers paid an estimated AED 20.5 billion for properties in Q3, with off-plan purchases contributing about AED 16.3 billion of that total. Average apartment prices climbed nearly 15 per cent year-on-year, with districts such as Yas Island and Al Reem Island posting the largest gains. Villa prices increased almost 12 per cent, driven by demand in premium zones such as Yas Island and Saadiyat Island.

Rental markets tightened further: apartment rents posted an average increase of 14.2 per cent over the year, with some locations like Yas Island witnessing rises as high as 25 per cent. Villa rentals also grew, albeit at a slower pace, crossing the 5 per cent mark city-wide. Real-estate analysts attribute the run-up in rents to constrained supply coupled with robust demand from expatriates, professionals and long-term residents.

Cavendish Maxwell warns that while over 8,000 units are slated for delivery this year, actual handovers may fall short of projections - a pattern historically observed in the city. The staggered delivery schedule is widely regarded as a mechanism to allow the market to absorb supply gradually and avoid oversupply, which could destabilise prices.

Despite that caution, momentum appears to be holding. Other property-market observers report that the third quarter has delivered the highest residential transaction volume in the past 12 months, with off-plan deals accounting for more than three-quarters of total activity. New project launches in areas such as Saadiyat Island and developments by firms working on gated master-planned communities and branded residences are attracting both domestic and foreign buyers.

Strong economic fundamentals underpin the trend: expanding population, diversification away from oil, rising investor confidence, and growing interest in high-quality housing appear to be sustaining appetite across segments. This has helped Abu Dhabi cement its standing as a growing hub for real estate investment, even as supply ramps up.

Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.

MENAFN01122025000152002308ID1110417902