After a strong performance in 2024, with 9,700 sales transactions worth a total of AED26 billion ($ 7.1bn), the residential real estate sector in the capital of the EAU is ready for greater growth this year and beyond.
Optimism is promoted by greater demand and strategic initiatives of the Government, according to the latest performance of the ABU Dhabi residential market of Cavendish Maxwell.
Abu Dhabi Real Estate Supply
About 10,800 new units must be delivered this year, with another 6,000 in 2026. By the end of 2028, the total residential inventory of Abu Dhabi will be around 313,700, according to the investigation.
5,200 new houses were delivered in 2024, mainly at Raha Berach, Yas Island, city of Masdar and Isla Saadiyat, with 275,000 units in total at the end of the year.
Andrew Laver, associated partner of Cavendish Maxwell, Abu Dhabi, said: “The residential sector in Abu Dhabi is experiencing constant growth, driven by the greater demand of local and international investors, as well as strategic government initiatives.
“Sustainable development and innovative housing solutions will be key to shape the future of the residential real estate market, with a growing demand and appreciation of prices that increase even more due to the expansion of infrastructure and improved community offers.”
Average sales prices for apartments increased by almost 11.5 percent in 2024, with villas prices in almost 12.5 percent.
Yas Island commanded the greatest increases in more than 20 percent for apartments and 13 percent for villas.
In the rental market, rates were an average of almost 13 percent for apartments and 8 percent for villas, with Yas Island seeing the highest increases, with 16 % and 10 percent respectively.
Cavendish Maxwell predicts more gradual increases this year.
The demand for lists increased almost 50 percent year -on -year in 2024, while transactions outside the plan saw a decrease or 13 percent, largely due to a reduction in new project releases.
Of the 9,700 sales transactions last year, 75 percent were for apartments, 63 percent more than the previous year.
Apartment sales transactions reached 7,300 with a total value of AED12.6 billion ($ 3.4 billion).
2,400 villas and town was bought, with a combined value of AED13.4bn ($ 3.6 billion), in 2024, a fall or 44 percent in volume and value, driven by new limited projects.
However, the demand for villas and attached houses lists increased 47 percent and 26 percent respectively, reflecting the growing confidence between investors and end users in the complete real estate market.
Abu Dhabi saw a 34 percent increase in mortgage transactions in 2024, with almost 5,000 mortgages, with a total value of AED7.1bn ($ 1.9bn) insured.
Loans for apartments dominated the mortgage market, 66 percent in volume and 55 percent in value the previous year.
The fall in interest rates, increasing investor confidence and attractive financing options of banks fed the mortgage demand last year, says Cavendish Maxwell.
Last year, almost 40 residential projects were launched in Abu Dhabi, bringing 11,000 new units to the market.
Al Rem Island saw the largest 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 in 12 projects, reinforcing its position as a leading player in the capital’s real estate sector.
Market performance outside this year’s plan will depend on the number of new launches: a decrease in new projects could lead to a decrease in the volume and value of transactions outside the plan.
