Abu Dhabi to Deliver 20,800 New Homes by 2026, Says Cavendish Maxwell

Abu Dhabi, UAE: Abu Dhabi City is gearing up for a major boost in residential supply, with 8,000 new homes scheduled for delivery by the end of 2025 and a further 12,800 units expected in 2026, according to new research from real estate consultancy Cavendish Maxwell.

The findings highlight the continued momentum in the emirate’s housing sector, supported by strong demand from both investors and end-users.

Steady Pipeline Amid Staggered Delivery Trends

Cavendish Maxwell reports that around 2,700 apartments, villas and townhouses were completed in the first nine months of the year. While the development pipeline remains robust, including 12,400 units planned for 2027 and 21,400 for 2028, actual handovers may fall below initial projections.

Andrew Laver, Associate Director at Cavendish Maxwell Abu Dhabi, noted that supply timelines often shift based on market absorption. “Based on recent handover trends, we could see fewer-than-planned properties being delivered in the next couple of years. This staggered approach – which is historically typical for Abu Dhabi – allows the market to absorb new supply gradually and prevents sudden increases in available stock.”

Strong Transaction Activity Driven by Off-Plan Sales

The emirate’s residential market recorded more than 6,400 transactions in Q3, supported by healthy demand across apartments, villas and townhouses. Off-plan activity continued to dominate, reinforcing Abu Dhabi’s appeal to long-term investors and first-time buyers alike.

Apartments remained the market’s most active segment, with 5,100 transactions during the quarter, driven by young professionals, new residents and smaller families. Limited villa launches also pushed more buyers toward apartment options.

Between July and September, sales values reached USD 5.58 billion (AED 20.5 billion), with off-plan deals accounting for USD 4.44 billion (AED 16.3 billion).

Price Growth Across Key Master-Planned Communities

Apartment prices rose nearly 15% year-on-year, with Yas Island and Al Reem Island posting the strongest gains. Villas saw an average price increase of just under 12%, led by high-demand areas such as Saadiyat Island and Yas Island.

Rental performance followed a similar upward trend. Apartment rents climbed 14.2% on average, reaching up to 25% increases in Yas Island, while villa rents rose 5.1% overall.

Market Outlook: Resilient Fundamentals and Steady Growth Ahead

Laver emphasised that the emirate’s residential sector remains supported by stable macroeconomic conditions and sustained investor confidence.

“Abu Dhabi City’s residential real estate market performed strongly in Q3, on the back of strong demand from investors. Looking ahead, the market is expected to remain resilient, with strong economic fundamentals, ongoing diversification, steady population growth and the increasing appeal of newer master planned communities continuing to support demand. We also expect to see both sales and rental prices rise further in the near term, although the pace of growth will vary depending on location as new supply enters the market.”

With sizeable upcoming supply, continued government-led development and a maturing investor base, Abu Dhabi’s residential market is positioned for further expansion through 2026 and beyond.