Abu Dhabi’s residential property market is preparing for a major expansion in 2026, with nearly 15,900 new homes expected to be completed following a record-breaking year for real estate sales in the UAE capital.
The new supply comes after a strong performance in 2025, when total property sales in Abu Dhabi reached AED73.2 billion, highlighting growing demand from both investors and homebuyers.
According to analysis by real estate consultancy Cavendish Maxwell, residential transactions in the emirate surged 55 percent year-on-year, reaching approximately 22,400 deals in 2025.
The data reflects increasing investor confidence and sustained interest in Abu Dhabi’s property market across both off-plan and ready residential developments.
Off-plan properties drive market growth
Off-plan projects played a key role in the market’s growth last year, accounting for the majority of transactions.
These developments represented 71 percent of all residential deals, with off-plan sales rising 68 percent to around 15,900 transactions, compared with approximately 9,400 deals in 2024.
The ready property segment also experienced steady growth, with transactions increasing by 31 percent year-on-year.
Property analysts say the strong performance across both segments highlights a balanced real estate market supported by multiple buyer groups, including investors, end-users and international buyers seeking opportunities in the UAE capital.
Thousands of new homes delivered
Developers completed approximately 7,000 new residential units in Abu Dhabi during 2025, increasing the emirate’s total housing supply to around 315,000 homes.
The development pipeline is set to expand further in the coming years.
Around 15,900 homes are scheduled for completion in 2026, while developers are planning an additional 16,800 units for delivery in 2027 and 22,300 homes in 2028.
If completed as expected, Abu Dhabi’s total residential inventory could reach nearly 371,800 units by the end of 2028.
However, industry experts note that actual handovers may be lower than projected, based on previous construction timelines.
Estimates suggest that between 6,500 and 9,000 homes may ultimately be delivered this year.
Strong demand supports property market
Market analysts say the strong growth in Abu Dhabi’s real estate sector reflects expanding buyer demand and increasing investor interest.
Andrew Laver, Director at Cavendish Maxwell Abu Dhabi, said the capital’s residential market achieved historic highs in 2025 due to robust demand and improved investor confidence.
“The UAE capital’s residential real estate market reached historic highs in 2025, reflecting strong buyer demand and increased investor confidence,” he said.
Laver added that the growth of both off-plan and ready property transactions demonstrates a broad market base.
“The strength of off-plan and ready transactions in parallel indicates a broad market base. This balance shows that growth is sustainable across both segments rather than being concentrated in a single area.”
Property prices and rents continue to rise
Strong demand has also contributed to rising property values across Abu Dhabi.
Average apartment prices increased by more than 15 percent in 2025, compared with a growth rate of 10.9 percent the previous year.
Villa prices also recorded notable gains, rising 12.2 percent on average.
Certain districts experienced particularly strong price increases.
Apartment prices rose approximately:
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18 percent on Yas Island
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17 percent on Al Reem Island
Villa values also climbed significantly, with increases of around:
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17 percent on Yas Island
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13 percent on Saadiyat Island
Rental prices followed a similar upward trend.
Average apartment rents increased 12.5 percent across the capital, while some districts saw sharper increases.
Yas Island recorded the largest rise in apartment rents at 23 percent, followed by Al Reef and Al Reem Island with increases of around 15 percent.
Al Raha Beach saw a more moderate rent increase of about 10 percent.
Villa rents rose 5.5 percent on average, with Al Reef recording the largest increase of nearly 10 percent.
Apartments dominate residential transactions
Apartments continued to account for the majority of property deals in Abu Dhabi during 2025.
Approximately two-thirds of all residential transactions involved apartment units, reflecting the large number of new apartment developments launched across the emirate.
A total of 14,800 apartment sales were recorded during the year, representing a 58 percent increase compared with 2024.
Off-plan apartments accounted for the largest share of these transactions, with about 10,100 deals, while ready apartment sales increased nearly 36 percent to around 4,700 transactions.
Meanwhile, villas and townhouses also saw strong growth, with approximately 7,600 units sold in 2025, marking a near 50 percent increase year-on-year.
Off-plan villa transactions rose 63 percent to about 5,800 deals, while ready villa sales increased 19 percent to around 1,800 transactions.
Key property hotspots in Abu Dhabi
Several districts emerged as leading locations for property transactions across the capital.
Al Reem Island remained the top area for apartment sales, recording around 5,100 transactions in 2025, representing a 75 percent increase compared with the previous year.
Other popular locations included:
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Yas Island with around 1,000 apartment transactions
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Fahid Island, which emerged as a new development hotspot with 725 sales
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Saadiyat Island, known for its luxury residential projects
Together, these four districts accounted for more than 75 percent of all apartment transactions in the emirate.
For villas and townhouses, leading locations included Al Bahyah, Al Hidayriyyat, Yas Island, Al Reem Island and Zayed City, which collectively represented nearly half of all villa and townhouse sales.
Aldar leads developers in sales
Among developers, Aldar Properties retained the top position in Abu Dhabi’s property market for the second consecutive year.
The developer completed more than 5,300 transactions, capturing approximately 32 percent market share.
Other developers also recorded strong growth.
Modon saw the fastest expansion, increasing sales from 485 transactions in 2024 to about 2,700 deals in 2025.
Meanwhile, Reportage Properties expanded significantly, with transactions rising to around 1,300 sales, while Bloom Holding and Radiant Real Estate maintained market shares of 4.8 percent and 4.5 percent respectively.
Property analysts believe that continued population growth, major infrastructure projects and strong economic performance in the UAE will help sustain demand for residential properties in Abu Dhabi, supporting further growth in the capital’s housing market in the coming years.
