Dubai, UAE, 10 March 2026 – Abu Dhabi’s residential real estate sector secured a record-breaking AED73.2 billion worth of sales in 2025 as transactions rose 55% year-on-year to reach 22,400, says leading real estate advisory and property consultancy Cavendish Maxwell.
Off-plan sales dominated the market, accounting for 71% of sales activity, supported by strategic project launches offering attractive payment plans and developer incentives, according to Cavendish Maxwell’s latest insight and analysis. Off-plan sales jumped 68%, with 15,900 transactions, compared to 9,400 in 2024. Ready sales rose by 31%.
Around 7,000 new homes were delivered in Abu Dhabi in 2025, bringing the total supply to 315,000 units. Some 15,900 units are slated for completion this year, history suggest that actual handovers could range from 6,500 – 9,000, the company said.
Andrew Laver, Director, Cavendish Maxwell
Andrew Laver, Director, Cavendish Maxwell Abu Dhabi, said: “The UAE capital’s residential real estate market reached historic highs in 2025, reflecting robust buyer demand and increased investor confidence. While Abu Dhabi’s residential market enters 2026 from a position of strength, geopolitcal tension in the wider region could influence investor sentiment and capital flows. However, Abu Dhabi’s strong sovereign buffers and diversified economy are expected to provide meaningful insulation, hleping to sustain market confidence and stability.
“The strength of off-plan and ready transactions in parallel indicates a broad market base. This balance is important as it shows that growth is sustainable across both segments and is not concentrated in one.
“While sales and rental prices in Abu Dhabi are likely to rise further in the near term, the pace of growth will vary from area to area as new supply enters the market. In addition, based on previous handover trends, the number of handovers could be lower than initially projected, with a measured pace of supply expected to support pricing momentum and prevent market imbalances,” he added.
Cavendish Maxwell’s 2025 Abu Dhabi Residential Market Performance report also shows that year-on-year:
- Apartment prices rose more than 15%, with villa prices up 12.2%
- Rents climbed 12.5% for apartments and 5.5% for villas
- Apartment dominated the sales market, accounting for 66% of activity
- Al Reem Island was the top location for apartment sales; Al Bahyah for villas and townhouses
- Aldar Properties was the leading developer for the second year, with over 32% market share and 5,300 sales
Apartment prices were up 15.1% on average, accelerating from the 10.9% growth in 2024, backed by a broadening buyer base. The biggest rises were at Yas Island (18%) and Al Reem Island (17%). Meanwhile, villas cost an average 12.2% more compared to 2024, with Yas Island and Saadiyat Island seeing rises of 17% and 13% respectively.
Average rents for apartments climbed 12.5% year-on-year, with wide variations between districts. Tenants at Yas Island saw a 23% hike in rents, with increases of 15% at Al Reef and Al Reem Island. There was a more modest increase of 10% at Al Raha Beach. Villa rents rose 5.5% on average, but, like apartments, saw significant differences depending on location. Villa rents climbed by nearly 10% at Al Reef, but just 1% at Saadiyat Island.
Two thirds (66%) of sales transactions in 2025 were for apartments, fuelled by robust developer activity in the apartment sector, which accounted for the majority of new launches. Apartments accounted for 14,800 deals – up 58% on 2024 – with off-plan leading the growth with 10,100 sales. The ready apartment market also strengthened, growing nearly 36% to 4,700 transactions.
Villas and townhouses also showed strong momentum, with sales volumes up by almost 50% compared to the previous year. Around 7,600 units were purchased, marking a robust recovery after a slowdown in 2024. Again, off-plan led the rebound, climbing 63% to reach 5,800 deals, while the ready market grew by 19% with 1,800 deals.
Al Reem Island took the number one spot for apartment sales, with 5,100 transactions in 2025 – an increase of 75% compared to 2024. In second place was Yas Island, with around 1,000 sales, with Fahid Island emerging as notable newcomer with 725 sales. The top four sales locations – Al Reem, Yas, Fahid and Saadiyat Islands – collectively secured more than 75% of all apartment transactions,
Top of the charts for villa and townhouse sales by far was Al Bahyah, with 339 transactions, followed by Al Hidayriyyat (137), Yas Island (135), Al Reem Island (123) and Zayed City (122). Together, these five districts accounted for over 48% of all sales.
For the second consecutive year, Aldar Properties was the leading developer by transactional volume, with 5,300 sales and almost a third of the market share. Modon saw the strongest growth, surging from 485 sales in 2024 to 2,700 in 2025 and commanding a market share of almost 17%. Reportage Properties posted robust growth too, more than tripling its transactions to 1,300 from 400 in 2024. Bloom Holding and Radiant Real Estate had 4.8% and 4.5% shares of the market.
With 7,000 new units coming to market in 2025, Abu Dhabi’s total residential inventory is currently around 315,000, with a robust pipeline that will push total stock to 371,800 by the end of 2028. There are 15,900 units in the pipeline this year, 16,800 for 2027 and 22,300 for 2028 – a direct response from developers to a surge in demand in recent years. However, judging by recent handover trends, actual delivers may fall short of projected figures.
SOURCE: MEDIA RELEASE / SUPPLIED CONTENT WITH IMAGE
