Abu Dhabi to Add 20,800 New Homes by 2026 as Demand Strengthens Across the Capital
Saturday, 6 December 2025
Abu Dhabi City is set to deliver 20,800 new residential units by the end of 2026, supported by strong sales momentum, rising prices, and sustained investor demand. New research from Cavendish Maxwell highlights a thriving off-plan market, robust rental growth, and continued appetite for prime island communities.
Key Highlights:
Supply & Development Outlook
- 8,000 new homes expected by end of 2025, followed by 12,800 additional units in 2026.
- Future pipeline includes 12,400 units for 2027 and 21,400 units for 2028.
- Experts note that staggered delivery supports healthy market absorption and stable growth.
Sales Market Performance
- 6,400 residential transactions in Q3, showcasing strong activity across apartments, villas, and townhouses.
- Off-plan dominates, contributing AED 16.3 billion out of AED 20.5 billion total Q3 sales.
- 5,100 apartment sales driven by investors, young professionals, and smaller families.
- Townhouse and villa sales rose 0.3% year-on-year and 8.3% quarter-on-quarter.
Price Trends
- Apartment prices increased by ~15% annually in Q3, with Yas Island and Al Reem Island leading growth.
- Villa prices rose by nearly 12% year-on-year, with Yas Island and Saadiyat Island at the forefront.
Rental Market Momentum
- Apartment rents increased 14.2% on average, with Yas Island rents up 25%.
- Villa rents posted a 5.1% increase year-on-year.
Market Insight
- Cavendish Maxwell notes that gradual supply delivery ensures stable growth and supports sustained investor confidence.
