Abu Dhabi’s residential market expansion is progressing at an impressive pace, driven by a dynamic combination of housing demand surge, government incentives, and extensive infrastructure development. The city’s leadership has taken proactive steps to ensure long-term, sustainable growth in the real estate sector by introducing investor-friendly policies, residency incentives, and large-scale urban development projects. These measures continue to attract both local and international investors looking to capitalize on the capital’s thriving property market. By 2028, Abu Dhabi’s total housing inventory is projected to reach approximately 313,700 units, a reflection of the government’s vision for a well-planned and modernized urban landscape.
The real estate boom in 2024 was a clear indicator of the sector’s strength, with 9,700 sales transactions recorded, amassing a total value of Dh26 billion. This surge in activity was largely fueled by heightened investor confidence and strong end-user demand. The sharp property price growth demonstrated the resilience of the market, with apartment prices rising by over 11% and villa prices increasing by 12.5% on average. Some of the most sought-after locations, such as Yas Island, experienced exceptional growth, with apartment values surging by more than 20% and villa prices climbing by 13%.
Despite this rapid expansion, the supply and demand gap became increasingly apparent in 2024, as housing demand far exceeded supply. The delivery of only 5,200 new residential units—mainly concentrated in Al Raha Beach, Yas Island, Masdar City, and Saadiyat Island—was insufficient to meet the high demand. This shortfall led to further price escalations and rental market pressures, a trend expected to continue into 2025. The limited availability of new properties has intensified competition among buyers and investors, contributing to a highly competitive market environment.
Major real estate developers, particularly Aldar Properties, played a crucial role in shaping the sector’s landscape. The company launched approximately 4,000 units across 12 projects, reinforcing its market leadership and strategic influence over Abu Dhabi’s property sector. The city’s housing market continues to evolve with a balanced mix of luxury and affordable housing, ensuring that a diverse range of buyers and investors can find suitable properties. As a result, stakeholders are closely monitoring market performance in 2024, as it provides key insights into future property trends and investment potential.
With significant infrastructure development, including enhanced road networks, public transportation projects, and smart city initiatives, Abu Dhabi is solidifying its position as a premier real estate investment hub. The combination of government-backed initiatives, robust demand, and a thriving economy makes the emirate an attractive destination for investors and homebuyers alike. As the market continues its upward trajectory, Abu Dhabi is set to remain a key player in the global real estate landscape, offering substantial growth opportunities for developers and investors in the years to come.