Abu Dhabi’s real estate sector is set for significant expansion, with 38,700 new residential units expected by 2028 to meet growing demand. According to Cavendish Maxwell’s latest report, 10,800 units are due for delivery this year, followed by 6,000 in 2026.
The UAE capital’s property market saw strong performance in 2024, recording 9,700 sales transactions worth $7.07bn. At the end of 2024, total residential stock stood at 275,000 units, with key deliveries in Al Raha Beach, Yas Island, Masdar City and Saadiyat Island. By 2028, Abu Dhabi’s residential inventory is projected to reach 313,700 units.
Rising demand has pushed property values higher. Apartment prices increased by 11.5% in 2024, while villa prices rose by 12.5%. Yas Island led the market, with apartment prices surging over 20% and villas up 13%.
Rental rates followed suit, with apartment rents climbing nearly 13% and villas up 8%. Mortgage activity also surged, with a 34% rise in transactions, totalling $1.9bn. Experts note that falling interest rates, investor confidence and attractive bank financing are key drivers of this growth, with further increases expected in 2025.
Gulf Economist Staff Writer