Abu Dhabi's residential property market poised for sustained growth, with 38,700 new units set for delivery by 2028
Sustainable development and innovative housing to shape future market
Dubai – Demand for residential property is on the rise in Abu Dhabi, where 38,700 new units are set to come to market by 2028, says leading real estate advisory and property consultant, Cavendish Maxwell.
Following a strong performance in 2024, with 9,700 sales transactions worth a total AED26 billion, the residential real estate sector in the UAE capital is poised for further growth this year and beyond, fuelled by increased demand and strategic Government initiatives, according to Cavendish Maxwell's latest Abu Dhabi Residential Market Performance Report.
Some 10,800 new units are due to be delivered this year, with another 6,000 in 2026. By the end of 2028, Abu Dhabi's total residential inventory will be around 313,700, the research shows. 5,200 new homes were delivered in 2024 – mostly at Al Raha Berach, Yas Island, Masdar City and Saadiyat Island – with 275,000 units in total at year end.
Andrew Laver, Cavendish Maxwell Associate Partner, Abu Dhabi, said: 'The residential sector in Abu Dhabi is experiencing steady growth, driven by increased demand from local and international investors as well as strategic Government initiatives such as residency incentives. Sustainable development and innovative housing solutions will be key in shaping the future of capital's residential property market, with rising demand and price appreciation further boosted by infrastructure expansion and enhanced community offerings.'
Sales and rental prices up
Average sales prices for apartments rose by nearly 11.5 in 2024, with villa prices up by just over 12.5%. Yas Island commanded the biggest rises at more than 20% for apartments and 13% for villas. In the rentals market, rates were an average of nearly 13% for apartments and 8% for villas, with Yas Island seeing the highest rises, at 16% and 10% respectively. Cavendish Maxwell predicts further gradual increases this year.
Ready properties dominate transactions
Demand for ready properties surged by almost 50% year-on-year in 2024, while off-plan transactions saw a decline of 13%, largely due to a reduction in new project launches. Of the 9,700 sales transactions last year, 75% were for apartments – up 63% on the previous year. Apartment sales transactions reached 7,300 with a total value of AED12.6 billion. 2,400 villas and townhouse, with a combined value of AED13.4 billion, were purchased in 2024 – a drop of 44% in volume and value, driven by limited new projects launches. However, demand for ready villas and townhouses was up 47% and 26% respectively, reflecting growing confidence among investors and end-users in the completed property market.
More mortgages …
Abu Dhabi saw a 34% increase in mortgage transactions in 2024, with nearly 5,000 mortgages, worth a total AED7.1 billion secured. Loans for apartments dominated the mortgage market, up 66% in volume and 55% in value on the previous year. Falling interest rates, increasing investor confidence and attractive financing options from banks fuelled mortgage demand last year, says Cavendish Maxwell.
… and new projects
Almost 40 residential projects were launched in Abu Dhabi last year, bringing 11,000 new units to the market. Al Reem island saw the highest number of new units (2,000), followed by Saadiyat Island (1,800) and Al Bahyah (1,700). Aldar Properties dominated the market, launching around 4,000 units across 12 projects, reinforcing its position as a leading player in the capital's real estate sector. The performance of this year's off plan market will hinge on the number of new launches: a decrease in new projects could lead to a decline in volume and value of off plan transactions.
Download the full Cavendish Maxwell Dubai Residential Market Performance report here. To contact Cavendish Maxwell, email dubai@cavendishmaxwell.com
-Ends-
For media enquiries, please contact: Rebecca Rees at rebecca@rebecomms.com
About Cavendish Maxwell
Cavendish Maxwell is one of the Middle East's leading real estate advisory groups and property consultants, with offices in Dubai, Abu Dhabi, Sharjah, Ajman, Kuwait City and Muscat. The company is a member of the Royal Institution of Chartered Surveyors (RICS) and offers a full range of property-related services, including valuation, strategic advisory, research, project and building consultancy and investment and commercial agency expertise. With a team of experienced professionals and a commitment to delivering exceptional service, Cavendish Maxwell has established itself as a trusted advisor in the regional real estate market.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
36 minutes ago
- Khaleej Times
Shaken by crises, Switzerland fetters UBS's global dream
Switzerland announced reforms on Friday to make its biggest bank UBS safer and avoid another crisis, hampering the global ambitions of a lender whose financial weight eclipses the country's economy. UBS emerged as Switzerland's sole global bank more than two years ago after the government hastily arranged its rescue of scandal-hit Credit Suisse to prevent a disorderly collapse. The demise of Credit Suisse, one of the world's biggest banks, rattled global markets and blindsided officials and regulators, whose struggle to steer the lender as it lurched from one scandal to the next underscored their weakness. On Friday, speaking from the same podium where she had announced the Credit Suisse rescue in 2023 as finance minister, Switzerland's president Karin Keller-Sutter delivered a firm message. The country would not be wrongfooted again. "I don't believe that the competitiveness will be impaired, but it is true that growth abroad will become more expensive," Keller-Sutter said of UBS. "We've had two crises. 2008 and 2023," she said. "If you see something that is broken, you have to fix it." During the global financial crisis of 2008, UBS was hit by a losses in subprime debt, as a disastrous expansion into riskier investment banking forced it to write down tens of billions of dollars and ultimately turn to the state for help. Memories of that crisis also linger, reinforcing the government's resolve after the collapse of Credit Suisse. For UBS, which has a financial balance sheet of around $1.7 trillion, far bigger than the Swiss economy, the implications of the reforms proposed on Friday are clear. Switzerland no longer wants to back its international growth. "Bottom line: who is carrying the risk for growth abroad?" said Keller-Sutter. "The bank, its owners or the state?" The rules the government proposed demand that UBS in Switzerland holds more capital to cover risks in its foreign operations. That move, one of the most important steps taken by the Swiss in a series of otherwise piecemeal measures, will make UBS's businesses abroad more expensive to run for one of the globe's largest banks for millionaires and billionaires. Following publication of the reform plans, UBS Chairman Colm Kelleher and CEO Sergio Ermotti said in an internal memo that if fully implemented, they would undermine the bank's "global competitive footprint" and hurt the Swiss economy. Strategy The reform would require UBS to hold as much as $26 billion in extra capital. Some believe the demands may alter the bank's course. "It could be that UBS has to change its strategy of growth in the United States and Asia," said Andreas Venditti, an analyst at Vontobel. "It's not just growing. It makes the existing business more expensive. It is an incentive to get smaller and this will most likely happen." Credit Suisse's demise exploded the myth of invincibility of one of the wealthiest countries in the world, home to a global reserve currency, and proved as unworkable a central reform of the financial crisis to prevent state bailouts. For many in Switzerland, the government's reforms are long overdue. "The bank is bigger than the entire Swiss economy. It makes sense that it should not grow even bigger," said Andreas Missbach of Alliance Sud, a group that campaigns for transparency. "It is good that the government did not give in to lobbying by UBS. The question is whether it is enough. We have a banking crisis roughly every 12 years. So I'm not really put at ease." UBS CEO Ermotti had lobbied against the reforms, arguing that a heavy capital burden would put the bank on the back foot with rivals. The world's second-largest wealth manager after Morgan Stanley is dwarfed by its U.S. peer. Morgan Stanley shares value the firm at twice its book value, compared with UBS's 20% premium to book. On Friday, the bank reiterated this message, saying that it strongly disagreed with the "extreme" increase in capital. But others are sceptical that the government has done enough. Hans Gersbach, a professor at ETH Zurich, said there was still no proper plan to cope should UBS run into trouble. "The credibility of the too big to fail regime remains in question."
The National
2 days ago
- The National
'Trumped' again: Taking stock of Tesla's market ups and downs
Tesla Motors' stock price is taking a beating again, this time because of the very high-profile squabble between chief executive Elon Musk and US President Donald Trump. Its 15 per cent decline on Thursday reflects the volatility that shadows the company's shares, which remain vulnerable to everything from market trends to short tweets, especially from Mr Musk. Now, with his increasingly bitter fight with Mr Trump, Mr Musk might find himself on the short end of the stick: once a trusted adviser, he has now fallen out of favour with his blitz of criticism over Mr Trump's "big, beautiful" budget bill. Mr Musk derided it as a "disgusting abomination". His gripes won't surely sit well with a "very disappointed" Mr Trump, who is notorious for getting back at his critics. Mr Musk curried favours during his time in the US administration, securing contracts and deals for his companies. Those favours are now likely up in the air. Mr Trump had already suggested that one way to save "billions and billions" is to "terminate" Mr Musk's government subsidies and contracts. It's a spectacular U-turn for the once allies; Mr Trump said he even bought a Tesla to show his support for Mr Musk. Losing the White House's support would be "terrible for Tesla, which is being eaten alive in Europe and Asia by Chinese competition, and Elon Musk's irritating involvement in politics", said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. She pointed out that Mr Musk would need the President's support, especially for Tesla's self-driving cars and Robotaxis, which "need friendly legislation to thrive". "Legislation is Trump. The hype around Tesla is not looking good," she added. Tesla's shares were up nearly 5 per cent in premarket trading on Friday amid reports of a scheduled call between Mr Trump and Mr Musk to end the spat. While Tesla's stock still remains slightly above its level when Mr Trump won his second presidency in November – Mr Musk splashed $250 million to help ensure that – it's now uncertain how the Musk-Trump clash will affect its share price moving forward. Here are some of the biggest movements in Tesla's stock history. July 24, 2024: Competition heat Tesla's stock dove 12 per cent to $215.99 after its second-quarter financials disappointed, with revenue sliding 7 per cent. The EV maker began feeling the heat from intense competition, most notably from China, as BYD famously overtook it as the world's biggest EV maker in the fourth quarter of 2023 and, subsequently, for the entirety of 2024. October 24, 2024: 22% blitz After solid third quarter financials that saw Mr Musk boldly projecting up to 30 per cent more sales in 2025, Tesla's stock rocketed nearly 22 per cent, putting investors at ease. This was the biggest single-day gain in more than a decade, which also added $150 billion to the company's market value. November 11, 2024: Tesla gets 'Trumped' Tesla gained nearly 9 per cent to $350 as investors expected the alliance between Mr Musk and the then president-elect Mr Trump to further boost its stock. The world's wealthiest person threw in about $250 million into Mr Trump's campaign to help the latter recapture the White House earlier that month. January 2, 2025: New Year's peeve After a series of highs, Tesla came back down, starting the new year with a more than 6 per cent drop to $379.28 after deliveries posted their first decline in a decade. This was also the first time the stock went below the $400 level in nearly a month. February 11, 2025: BYD strikes again After the previous coups, BYD once again hit Tesla, this time as it partnered with fellow Chinese company DeepSeek – famous for putting a dent into the auras of OpenAI and Nvidia – to utilise artificial intelligence in autonomous vehicles. That caused Tesla's stock to shed 6.3 per cent to $328.50. March 10 to April 9, 2025: Tariff see-saw The beginning of the Trump tariff effect: on March 10, Tesla's stock slid more than 15 per cent to $222.15, amid concerns and uncertainty around Mr Trump's planned tariffs. It didn't last long, as the company's share price worked its way back up, peaking – for this period – at $288.14 on March 25, as Mr Trump signalled he might scale back some of the levies. Mr Trump unveiled his Liberation Day tariffs on April 2. By April 8, investors were now raising concerns on how the company would cope with them: that combination pulled down Tesla's shares nearly 5 per cent to $221.86, its lowest since the March 10 slide. This time, it seemed like a blip: the following day, April 9, Tesla shares soared more than 22 per cent after Benchmark Company analyst Mickey Legg dismissed the sell-off as 'overblown'. April 21, 2025: Dogged by Doge Tesla shares gave up almost 6 per cent analyst fears that there was an 'continuing brand erosion' stemming from Mr Musk's role in the Trump administration. Mr Musk and Tesla had already been feeling the backlash: consumers and the general public, particularly those incensed by his federal job and budget cutting, have protested outside Tesla stores and vandalised its EVs, in addition to Tesla owners "rebranding" their cars out of protest. May 14, 2025: Tariff reprieve Tesla gained more than 9 per cent to $347.68 from the close on May 12 – the day the US and China agreed to temporarily halt their tit-for-tat tariffs. The company's stock would then remain largely steady, until Mr Musk departed from his role in the US government – leading to the public squabble with Mr Trump.
Zawya
3 days ago
- Zawya
Calls for Omanisation freeze counterproductive
While relevant authorities are working to employ, train, and qualify Omanis for work in various available economic sectors, and to raise the percentage of "Omanisation" among qualified personnel in required specialties, today we find some countries attempting to distort this national and sovereign demand by proposing the idea of freezing "Omanisation" in some companies established through foreign investments. For more than three weeks, numerous messages and appeals have been circulating in the social media from citizens addressing government officials not to accept any condition restricting the employment of national workers in these companies in the event of bilateral trade agreements. This would lead to a doubling of the number of foreign employees in commercial establishments operating in the Sultanate, which would increase their control over the fate of Omanis and their ability to decide. This will also lead to a decline in the qualification opportunities for Omanis in these institutions. And ultimately will lead to an increase in annual remittances of expatriates to their home countries, thereby reducing liquidity in the domestic market. Many people view this country's request to freeze the "Omanisation" policy in the free trade agreement as a form of guardianship over the Omani labour market. When a country seeks to permanently guarantee its labour in vital sectors in another country, this sets a dangerous precedent that undermines the sovereignty of national decision-making. We know that foreign investment in any country seeks economic freedom, even in hiring its own workers, to reduce the final cost of any product or service. However, each country has its own laws, particularly regarding the employment of a certain percentage of national workers in these institutions, and Oman is no exception. However, I do not believe that the goal of freezing Omanisation will create chaos in the Omani market, as some suggest. However, there is a possibility that this could lead to some diplomatic tensions in specific commercial areas, which could be avoided by clarifying the country's policies. The world has experienced some problems resulting from the presence of its workers in other countries over the past decades. In certain cases, the issue of national labour or economic policies was used as a means to strain relations or improve a particular domestic situation. In international relations, there are solutions to resolve such disputes, and countries work to resolve them diplomatically to avoid escalation. We must view these issues and matters objectively, because governments typically seek to protect their national interests, and disputes related to labour and economic policies are often resolved through dialogue and agreements. The volume of Oman's foreign trade with countries around the world is increasing annually, and the quality of foreign investment projects is also increasing. Oman imports numerous products and goods, from around the world. And any demand to freeze the "Omanisation" policy will lead to a decline in demand from these countries. Furthermore, such a demand will lead to a decline in demand for joint big projects from such countries. All of these projects are part of efforts to enhance economic cooperation between countries, especially since recent years have witnessed an increase in the volume of investments and joint projects between Oman and these countries. Therefore, the presence of national labour alongside expatriate labor is a matter of sovereignty, and no country can propose a vision that excludes national labour from working in its country.
