Abu Dhabi, UAE – The UAE capital is set to add 11,900 new homes to its residential real estate market by the end of 2025, according to Cavendish Maxwell, as demand for housing continues to rise on the back of population growth and increasing investor activity.
Combined with the 600 units delivered in Q1 2025, the total housing supply expected this year will reach 12,500 units. Looking ahead, another 7,000 homes are already in the pipeline for delivery in 2026.
Prices Climb Across All Segments
Cavendish Maxwell’s latest report reveals strong upward pressure on property prices, driven by robust demand and limited off-plan activity. In Q1 2025, residential sales in Abu Dhabi reached AED 3.7 billion across 1,300 transactions, with the average transaction value hitting a record AED 2.5 million—the highest since Q1 2022.
- Apartment prices rose 12.3% year-on-year and 4.1% quarter-on-quarter
- Villas increased by 12.5% year-on-year and 2.4% quarter-on-quarter
The strongest villa price gains were seen on Yas Island (15.5% year-on-year) and Saadiyat Island, followed by Al Reef.
Ready Homes Dominate Market Activity
The Q1 data shows a clear shift toward ready properties, with 900 of the 1,300 total transactions involving completed units, accounting for AED 2.3 billion in sales. In contrast, off-plan sales declined both year-on-year and quarter-on-quarter due to fewer new launches.
Despite a slight quarterly dip in activity—likely influenced by the post-holiday season and reduced trading during Ramadan and Eid—buyer appetite remains strong, particularly for villas and townhouses, which are increasingly favored by families and end-users seeking more space and long-term living options.
Mortgages Reflect End-User Demand
Mortgage activity also reflected this trend, with AED 1.7 billion in loans secured across 800 mortgages in Q1. Transactions involving villas and townhouses rose nearly 60% year-on-year and 3.5% quarter-on-quarter, while apartment lending volumes declined, further highlighting the shift in buyer preference.
Market Outlook Remains Positive
Andrew Laver, Associate Director at Cavendish Maxwell – Abu Dhabi, commented:
“The capital is experiencing a significant move toward the secondary market, with growing demand for completed homes and fewer off-plan launches. The continued rise in average transaction values, strong bank activity, and steady project delivery indicate a resilient and maturing real estate sector.”
Government initiatives—such as attractive payment plans, long-term residency options, infrastructure upgrades, and quality-of-life enhancements—are also contributing to market momentum, reinforcing Abu Dhabi’s appeal among both investors and end-users.
