UAE: Over 38,000 new residential units to come up in Abu Dhabi by 2028

26/03/2025 07:56 AST

Abu Dhabi property market pipeline looks strong as 38,700 new units are set to come to market by 2028, easing pressure on rising prices in the UAE capital, according to property consultant, Cavendish Maxwell.

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 as around 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, Cavendish Maxwell 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. Sustainable development and innovative housing solutions will be key in shaping the future of capital's residential property market, with rising demand and price appreciation further boosted by infrastructure expansion and enhanced community offerings," said Andrew Laver, associate partner, Cavendish Maxwell, Abu Dhabi.

2024 performance
Abu Dhabi's real estate market recorded a strong performance in 2024, with 9,700 sales transactions worth a total of Dh26 billion.

Around 5,200 new homes were delivered in 2024 - mostly at Al Raha Berach, Yas Island, Masdar City and Saadiyat Island.

Last year, average sales prices for apartments rose by nearly 11.5 per cent, with villa prices up by just over 12.5 per cent. Yas Island commanded the biggest rises at more than 20 per cent for apartments and 13 per cent for villas.

According to Cushman & Wakefield Core, 3,004 residential units were delivered in 2024, 46 per cent below forecasts.

"Supply struggled to keep up with demand in 2024, driving sharp price increases. While new supply in 2025 is expected to help, demand remains high, putting continued pressure on rents and sales prices," said Prathyusha Gurrapu, head of research and consultancy at Cushman & Wakefield Core.

Cushman & Wakefield Core noted that housing demand in the capital far exceeded supply in 2024.

Cavendish Maxwell data showed that 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. The performance of this year's off-plan market will hinge on the number of new launches: a decrease in new projects could lead to a decline in the volume and value of off-plan transactions.

Khaleej Times