Abu Dhabi's Real Estate Market to Add 38,700 New Homes Soon

Abu Dhabi’s real estate market is growing, with many new homes expected to be available by 2028. The demand for homes in the city is increasing, and by 2028, 38,700 new homes will be ready. In 2024, the market did well with 9,700 sales worth about 26 billion AED (around $7.1 billion).

A report from Cavendish Maxwell says the real estate market in Abu Dhabi is growing because more people are interested in buying homes. This is also due to government actions like offering special residency benefits. The government's plan to improve the city with better infrastructure and new homes is helping the market grow.

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By 2026, around 10,800 new homes will be available, and by the end of 2028, there will be a total of 313,700 homes in Abu Dhabi. In 2024, 5,200 homes were finished and ready to live in, mainly in areas like Al Raha Beach, Yas Island, Masdar City, and Saadiyat Island.

The market is growing because both local and foreign buyers are showing interest in Abu Dhabi. Prices for homes went up in 2024, with apartment prices rising by 11.5%, and villa prices going up by 12.5%. The biggest price increase was on Yas Island, where apartments saw a 20% rise in price, and villas increased by 13%.

The rental market also saw increases in prices. Rents for apartments went up by 13%, and villa rents increased by 8%. Yas Island had the largest increase in rents, with apartments rising by 16% and villas by 10%.

In 2024, the demand for homes that are ready to move in grew by 50%. On the other hand, fewer people bought homes that are still being built, mainly because fewer new projects were launched. Out of the 9,700 sales, 75% were apartments, worth AED 12.6 billion ($3.4 billion). Also, 2,400 villas and townhouses were sold for AED 13.4 billion ($3.6 billion), a 44% decrease in sales compared to the previous year.

Abu Dhabi also saw a rise in mortgages. There was a 34% increase in mortgage deals in 2024, with around 5,000 mortgages worth AED 7.1 billion ($1.9 billion). Most of the mortgages were for apartments. Interest rates went down, and banks gave good loan options, which helped more people get mortgages.

Around 40 new housing projects were launched in 2024, adding 11,000 apartments to the market. The most new homes were added to Al Reem Island, Saadiyat Island, and Al Bahyah, with 2,000, 1,800, and 1,700 new homes, respectively. Aldar Properties, a big company, launched 4,000 new homes in 12 projects.

Looking ahead, the future of new projects in Abu Dhabi depends on how many new buildings are launched. If fewer new homes are built, the market for homes that are still being built might decrease. However, the overall outlook for the market is positive, with more people interested in buying homes in the city.