Gulf News: Dubai: There are 15,900 residential units scheduled for completion in Abu Dhabi this year, following a record-breaking year for the capital’s property market, with total sales reaching Dh73.2 billion in 2025.

Residential transactions surged 55% year on year to 22,400 deals, according to analysis from Cavendish Maxwell, highlighting strong investor appetite and sustained buyer demand across both off-plan and ready property segments.

Off-plan projects drove much of the activity. These accounted for 71% of all residential deals last year after transactions jumped 68% to around 15,900 sales compared with 9,400 the year before. Ready property transactions also expanded, climbing 31%.

Developers delivered about 7,000 new homes during 2025, pushing the capital’s total residential inventory to roughly 315,000 units.

Strong demand drives record year
Property consultants say the surge in activity reflects a broadening buyer base that includes end users, investors and overseas purchasers seeking exposure to the UAE capital’s real estate sector.

“The UAE capital’s residential real estate market reached historic highs in 2025, reflecting robust buyer demand and increased investor confidence,” said Andrew Laver, Director at Cavendish Maxwell Abu Dhabi.

Growth across both off-plan and ready segments signals a market supported by multiple buyer groups and strong developer activity.

“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,” Laver said.

Supply pipeline expands
Developers are responding to the surge in demand by accelerating project launches and expanding future supply. Around 15,900 units are expected to be completed during 2026, although past delivery patterns suggest the actual number of handovers could range between 6,500 and 9,000 homes.

A larger development pipeline stretches further into the decade. Some 16,800 units are projected for completion in 2027 and around 22,300 homes in 2028, which would lift total residential stock in Abu Dhabi to roughly 371,800 units.

Supply entering the market in phases may help maintain price stability.

“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,” Laver said. “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.”

Prices and rents climb
Rising demand translated into stronger property values across the capital last year. Apartment prices increased by more than 15% on average, accelerating from the 10.9% growth recorded in 2024. Villas also registered strong gains with prices rising 12.2%.

Certain districts recorded particularly strong growth. Prices climbed around 18% on Yas Island and 17% on Al Reem Island in the apartment segment. Villa values rose roughly 17% on Yas Island and 13% on Saadiyat Island.

Rental markets also tightened as demand strengthened. Apartment rents increased by 12.5% on average, although the pace varied widely between districts. Tenants on Yas Island faced the steepest increase, with rents climbing 23%, while Al Reef and Al Reem Island recorded gains of around 15%. Al Raha Beach posted a more moderate rise of about 10%.

Villa rents increased by 5.5% on average. Al Reef saw the biggest rise with rents climbing close to 10%, while Saadiyat Island recorded a modest increase of around 1%.

Apartments dominate sales activity
Apartments continued to drive the majority of residential transactions in 2025. Two-thirds of all deals involved apartment units, reflecting strong developer activity in the sector and a steady flow of new project launches.

Apartment sales reached about 14,800 transactions, marking a 58% increase from the previous year. Off-plan units accounted for the bulk of the activity with around 10,100 sales, while ready apartment deals rose nearly 36% to about 4,700.

Villas and townhouses also recorded strong growth after slowing in 2024. Around 7,600 units were sold during the year, representing a near 50% increase compared with the previous year. Off-plan villa transactions rose 63% to roughly 5,800 deals while ready villa sales climbed 19% to around 1,800 transactions.

Key locations and leading developers
Several districts emerged as focal points for property activity across the capital.

Al Reem Island ranked first for apartment transactions with about 5,100 sales during 2025, a jump of roughly 75% from the previous year. Yas Island followed with around 1,000 deals while Fahid Island recorded 725 sales during its emergence as a new development hotspot.

These four districts, including Al Reem, Yas, Fahid and Saadiyat Islands, accounted for more than three-quarters of all apartment transactions.

Villa and townhouse sales were concentrated in a different set of locations. Al Bahyah led the market with 339 deals followed by Al Hidayriyyat with 137 sales, Yas Island with 135 transactions, Al Reem Island with 123 and Zayed City with 122.

Together these five districts represented nearly half of all villa and townhouse sales. Among developers, Aldar Properties retained the top position for the second consecutive year with more than 5,300 transactions and roughly 32% market share.

Modon recorded the fastest growth, increasing its sales from 485 deals in 2024 to about 2,700 transactions last year. Reportage Properties also expanded significantly with transactions rising to around 1,300 from roughly 400 the previous year. Bloom Holding and Radiant Real Estate secured market shares of about 4.8% and 4.5% respectively.

Property consultants believe continued population growth, infrastructure investment and strong economic performance will keep demand firm across the capital’s housing sector, even while geopolitical developments in the region remain closely watched by investors.