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11,900 homes to be built in Abu Dhabi with demand projected to grow

AbuDhabi Real Estate

AI generated

NEWS IN BRIEF

The average sale price per buyer was AED 2.5 million, the highest quarterly figure in three years

The total number of properties to be created is projected to be 12,500 by year-end

A shift in preference towards townhouses and villas was noted, with a reduction in the market share of residential apartments.

The real estate market in Abu Dhabi continues to grow, with projections of an additional 11,900 homes to be delivered in the Abu Dhabi year-end, as per an official press release by Cavendish Maxwell.

The average sale price per buyer was AED 2.5 million, the highest quarterly figure in three years. The report’s insights suggest that investor interest is growing, and with population growth, demand for real estate in Abu Dhabi could outstrip supply. 

With Abu Dhabi delivering 600 properties in Q1, the total number of properties to be created is projected to be 12,500 by year-end. Total property transactions were 1,300 valued at a sales value of AED 3.7 billion, while ready property transactions were 900 valued at AED 2.3 billion. The remaining 400 sales were off-plan properties. 

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“The UAE capital is seeing a notable shift towards the secondary residential market, with sustained demand for ready homes and fewer off-plan project launches compared to previous quarters. The average sales transaction reached a record AED2.5 million in Q1, with encouraging signs of broader price appreciation – a trend we expect to continue in the months ahead.  Robust bank activity and strong project delivery during the early part of the year underscore the resilience and dynamism of the Abu Dhabi real estate sector,” said Cavendish Maxwell’s Associate Director, Andrew Laver. 

A shift in preference towards townhouses and villas was noted, with a reduction in the market share of residential apartments. The locations that saw the highest price increase for villas in Abu Dhabi were Yas Island, Saadiyat Island, and Al Reef. 

800 individual loans for housing were secured in Q1 2025, valued at AED 1.7 billion, with transactions for villas and townhouses up by approximately 60% year on year. On the other hand, mortgage lending for apartments declined.

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