Abu Dhabi, UAE — Abu Dhabi is set to deliver 8,000 new residential units in 2025 and an additional 12,800 in 2026, according to new research from Cavendish Maxwell, signaling a steady expansion phase for the capital’s housing market. The findings form part of the consultancy’s latest analysis into the Abu Dhabi residential supply outlook, which highlights both upcoming inventory and shifting demand patterns across the emirate.
Strong Uptake as Off-Plan Dominates Transactions
The UAE capital registered more than 6,400 residential transactions in Q3, underscoring resilient buyer appetite despite rising prices across key communities. Off-plan continued to dominate activity, particularly among young professionals and emerging investors seeking accessible entry points into the market.
Apartment sales made up 5,100 of all transactions during the quarter, reflecting sustained demand for mid-market and investment-grade units. Limited new villa launches pushed buyers toward apartments, even as villa and townhouse transactions grew 8.3% quarter-on-quarter and 0.3% year-on-year.
Cavendish Maxwell said the Abu Dhabi residential supply outlook remains stable, although actual handovers may deviate from headline projections.
Also read: MAAM Group Launches Move-In-Ready Apartments Abu Dhabi On Al Reem Island
“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,” said Andrew Laver, Associate Director, Cavendish Maxwell Abu Dhabi.
Price Growth Strengthens in Prime Master Communities
Residential sales values reached AED 20.5 billion between July and September, with off-plan purchases contributing AED 16.3 billion to the total. Apartment prices jumped nearly 15% year-on-year, led by strong performance on Yas Island and Al Reem Island. Villas recorded nearly 12% annual growth, with the most notable premiums in Yas Island and Saadiyat Island.
Rental activity also picked up in Q3. Apartment rents rose 14.2% on average, touching 25% at Yas Island, while villa rents increased 5.1% across Abu Dhabi. Analysts attribute this rise partly to limited ready-to-move stock and the delayed timing of new handovers forecast under the Abu Dhabi residential supply outlook.
Supply Pipeline Extends Through 2027 and 2028
Cavendish Maxwell’s research notes additional supply for later years, including 12,400 units expected in 2027 and 21,400 in 2028, although the consultancy warns that delivered stock may fall short of early projections. Delayed inventory cycles remain historically common in Abu Dhabi, allowing the market to balance supply and demand organically.
“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,” Andrew Laver added.
Also read: Relaam Targets 15% Growth in Abu Dhabi Real Estate Portfolio by 2026
This long-term view adds further depth to the Abu Dhabi residential supply outlook, especially for investors assessing medium-term opportunities in the UAE capital.
What the Outlook Means for Indian Investors
For Indian investors—one of the strongest buyer groups in the UAE—the Abu Dhabi residential supply outlook provides clarity on upcoming market opportunities. The phased delivery pattern expected through 2025 and 2026 gives buyers room to plan their entry strategically, especially those watching for price adjustments linked to new supply cycles. Many Indian buyers favour off-plan developments for their structured payment schedules, making Abu Dhabi’s off-plan-driven sales trend particularly relevant.
A rising rental market adds further appeal. With apartment rents growing at double-digit rates in several communities, investors seeking stable rental income may find opportunities in emerging clusters on Yas Island and Al Reem Island. For those already heavily invested in Dubai, Abu Dhabi offers a diversification pathway with a more predictable supply environment, consistent price appreciation, and a slower, steadier demand curve. Indian buyers looking for long-term capital preservation as well as yield generation can benefit from this comparatively stable market dynamic.
Overall sentiment remains positive. Analysts say Abu Dhabi’s economic fundamentals, ongoing diversification programmes, and expanding population are likely to support healthy absorption rates as new stock enters the market. The Abu Dhabi residential supply outlook therefore points to a resilient trajectory, driven by strong investor interest and a supply strategy that continues to protect long-term price stability.
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