Today's Edition
ABU DHABI (ALETIHAD)
Demand for residential property is on the rise in Abu Dhabi, where 38,700 new units are set to come to market by 2028, says leading real estate advisory and property consultant, Cavendish Maxwell.
Following a strong performance in 2024, with 9,700 sales transactions worth a total Dh26 billion, the residential real estate sector in the UAE capital is poised for further growth this year and beyond, fuelled by increased demand and strategic government initiatives, according to Cavendish Maxwell's latest Abu Dhabi Residential Market Performance Report.
Some 10,800 new units are due to be delivered this year, with another 6,000 in 2026. By the end of 2028, Abu Dhabi's total residential inventory will be around 313,700, the research shows. 5,200 new homes were delivered in 2024 – mostly at Al Raha Berach, Yas Island, Masdar City and Saadiyat Island – with 275,000 units in total at year end.
Andrew Laver, Cavendish Maxwell Associate Partner, Abu Dhabi, said: "The residential sector in Abu Dhabi is experiencing steady growth, driven by increased demand from local and international investors as well as strategic government initiatives such as residency incentives."
Average sales prices for apartments rose by nearly 11.5% in 2024, with villa prices up by over 12.5%. Yas Island commanded the biggest rises at more than 20% for apartments and 13% for villas. In the rentals market, rates were an average of nearly 13% for apartments and 8% for villas, with Yas Island seeing the highest rises, at 16% and 10% respectively.
Demand for ready properties surged by almost 50% year-on-year in 2024, while off-plan transactions saw a decline of 13%, largely due to a reduction in new project launches. Of the 9,700 sales transactions last year, 75% were for apartments – up 63% on the previous year. Apartment sales transactions reached 7,300 with a total value of Dh12.6 billion.
A total of 2,400 villas and townhouse, with a combined value of Dh13.4 billion, were purchased in 2024 – a drop of 44% in volume and value, driven by limited new projects launches. However, demand for ready villas and townhouses was up 47% and 26% respectively, reflecting growing confidence among investors and end-users in the completed property market.
Abu Dhabi saw a 34% increase in mortgage transactions in 2024, with nearly 5,000 mortgages, worth a total Dh7.1 billion secured. Loans for apartments dominated the mortgage market, up 66% in volume and 55% in value on the previous year. Falling interest rates, increasing investor confidence and attractive financing options from banks fuelled mortgage demand last year, says Cavendish Maxwell.
Almost 40 residential projects were launched in Abu Dhabi last year, bringing 11,000 new units to the market. Al Reem island saw the highest number of new units (2,000), followed by Saadiyat Island (1,800) and Al Bahyah (1,700).
Aldar Properties dominated the market, launching around 4,000 units across 12 projects, reinforcing its position as a leading player in the capital's real estate sector.
