by OplusAdmin 
Abu Dhabi Real Estate Market Forecast: 38,700 Residential Units Set for Delivery by 2028
As Abu Dhabi continues to assert its position as a regional real estate powerhouse, the capital is poised to see 38,700 new residential units delivered by the end of 2028, reinforcing its status as one of the most dynamic housing markets in the Gulf region. This robust growth is being fuelled by rising demand, strong investor confidence, and government-backed incentives that make property ownership increasingly attractive for both local and international buyers.
🔍 Strong Performance in 2024 Sets the Stage for Expansion
Abu Dhabi’s real estate sector wrapped up 2024 on a high note with 9,700 completed property transactions, amassing a total value of AED 26 billion. This performance reflects the city’s strategic urban planning and residency initiatives, such as the UAE Golden Visa, which continue to drive both interest and investment in the capital’s real estate offerings.
According to industry expert Andrew Laver, Associate Partner at Cavendish Maxwell, the market’s growth trajectory is supported by “sustained demand from both local and international investors and long-term governmental strategies.”
🏗️ What’s Coming: Projected Deliveries Through 2028
The capital is gearing up to add 10,800 residential units in 2025, followed by an additional 6,000 in 2026, according to Cavendish Maxwell’s latest Abu Dhabi Market Report.
By the close of 2028, Abu Dhabi’s total residential inventory is expected to reach 313,700 units—a significant leap from the 275,000 units available by the end of 2024. In 2024 alone, 5,200 new homes were completed, primarily in fast-growing districts like:
- Yas Island
- Masdar City
- Saadiyat Island
- Al Raha Beach
These areas continue to attract buyers thanks to their integrated communities, proximity to landmarks, and high rental returns.
💰 Prices on the Rise: Apartments Up 11.5%, Villas Up 12.5%
A key highlight from the 2024 performance is the substantial increase in average property prices:
- Apartments: +11.5%
- Villas: +12.5%
Yas Island saw the highest price gains, with apartments rising more than 20%, while villas increased by over 13%, emphasizing the area’s growing appeal to both investors and families.
These price hikes reflect limited supply, high demand, and the premium lifestyle associated with key residential destinations across the capital.
💼 Surge in Mortgage Activity: 34% Growth in 2024
The mortgage market in Abu Dhabi also experienced a major boost in 2024, with nearly 5,000 mortgages issued, totalling AED 7.1 billion in value. Apartment mortgages led the charge:
- 66% increase in volume
- 55% increase in value compared to 2023
This uptick was driven by several factors:
- Lower interest rates
- Flexible loan terms from local banks
- Improved investor confidence
The mortgage market’s expansion is a clear indicator of growing end-user interest in securing long-term home ownership.
🏠 Ready Properties vs Off-Plan: Shifting Buyer Preferences
One of the most notable trends in 2024 was the 50% surge in demand for ready properties, as buyers prioritized immediate returns and occupancy. In contrast, off-plan transactions fell by 13%, largely due to a slowdown in new project launches.
Key sales insights:
- Apartment Sales: 7,300 units | AED 12.6 billion | 75% of total transactions
- Villa & Townhouse Sales: 2,400 units | AED 13.4 billion | Down 44% in volume and value
Despite the downturn in new launches, demand for completed villas and townhouses rose significantly:
- Ready Villas: +47%
- Ready Townhouses: +26%
This shift signals a growing appetite for tangible assets among both investors and end-users, particularly amid global economic fluctuations.
🏢 New Launches: 40 Residential Projects in 2024
In a testament to the market’s vitality, nearly 40 new residential developments were launched in Abu Dhabi in 2024, bringing over 11,000 new units to the market.
Top-performing locations included:
- Al Reem Island – highest number of new units
- Saadiyat Island – premium beachfront and cultural appeal
- Al Bahyah – emerging as a new mid-market hotspot
Among developers, Aldar Properties continued to dominate with:
- 12 new projects
- Approximately 4,000 units launched
Aldar’s continued leadership highlights its role in shaping Abu Dhabi’s modern urban landscape, and its performance is likely to influence overall off-plan trends in 2025.
📊 Rental Market Trends: Steady Growth Continues
The rental market remained resilient in 2024, with average rent increases of:
- Apartments: +13%
- Villas: +8%
Yas Island once again led the pack, with:
- Apartment rents rising by 16%
- Villa rents climbing 10%
These gains reflect growing interest in lifestyle-driven communities that offer convenience, entertainment, and world-class infrastructure.
🌱 Sustainable Development & Infrastructure Expansion
Looking ahead, the future of Abu Dhabi’s residential market will depend heavily on sustainable planning, green building solutions, and infrastructure enhancements. Andrew Laver notes that:
“Sustainable development and innovative housing solutions will be key in shaping the future of Abu Dhabi’s residential property market.”
Upcoming expansions in transport, public amenities, and mixed-use developments will play a critical role in ensuring the city meets the evolving needs of residents and investors.
📌 Conclusion: Abu Dhabi Property Market Positioned for Long-Term Growth
As we approach the midpoint of the decade, Abu Dhabi real estate is clearly entering a new era of expansion, underpinned by strong fundamentals:
- Strategic government initiatives
- Growing investor confidence
- Attractive mortgage options
- Sustainable and diversified developments
With 38,700 units set for delivery by 2028, the capital is preparing to meet the needs of a growing population while maintaining a premium lifestyle offering for global buyers.
