Abu Dhabi ready villa sales volumes rise 72 percent to reach four-year high: Cavendish Maxwell

Sales volumes for ready villas and townhouses in Abu Dhabi have risen 72% year-on-year to reach their highest levels since 2021, says leading real estate advisory and property consultant, Cavendish Maxwell.

Some 700 ready villas and townhouses were bought between January and June this year, with end-users seeking larger, family-oriented homes and investors drawn to attractive rental yields and potential long-term capital appreciation.

Abu Dhabi residential sales values for all ready and off-plan properties totalled AED8.9 billion across 3,300 transactions in H1 2025 – a 33% drop in value and 37% fall in volume compared to the same period last year. The reductions are the result of limited new project launches, which in turn have redirected investors to ready homes, the company said.

Cavendish Maxwell’s Abu Dhabi residential market performance report also shows that in the first six months of this year:

• 2,400 new units were completed. Another 10,400 properties are under construction.
• Year-on-year, apartment prices were up 14%; villas 11%.
• Average transaction values for ready homes hit AED2.5 million; up from AED2.1 million year-on-year.
• Apartments continued to dominate sales activity, with a 73% market share – a slight decline from 76% in H1 2024.
• Mortgage values rose 12% year-on-year, reaching AED3.5 billion across 1,700 loans, with villas and townhouses contributing AED2.5 billion.
• Average rental rates increased by 14% compared to H1 2024 and 6.7% against H2 last year.

Andrew Laver, Associate Director, Cavendish Maxwell Abu Dhabi, said: “Abu Dhabi’s overall residential real estate sales activity has moderated compared to a year ago, but demand for completed projects remains robust, as highlighted by our latest research. This sustained continues to drive up prices across apartments and villas, underscoring a healthy appetite among end-users and investors.

“While H1 has seen a limited number of new launches, several large-scale, off-plan developments from key developers like Aldar and Modon, coupled with new projects from smaller private developers, are expected to come to the market during the remainder of 2025 – a move that should reinvigorate supply and stimulate broader market engagement.

“These market dynamics set a strong foundation for the second half of the year, with promising prospects across the off-plan and completed property segments. Abu Dhabi’s real estate sector continues to show depth and adaptability, and is well-positioned for sustained growth in the coming months.”

The property pipeline

2,400 units have been delivered so far this year, with another 10,400 due for completion in the next six months, and a further 11,000 on the way in 2026, by which time Abu Dhabi’s total residential inventory could reach almost 300,000 units. The Government’s Vision 2030 strategy, combined with steady population growth, is fuelling demand for family-oriented, quality homes with modern amenities. In addition, strengthening economic conditions across the UAE and wider GCC are bolstering investor appetite, the report shows.

Sales and rental prices on the rise

Average sales prices for apartments rose 14% year-on-year and 8.5% against H1 2024, with buyers increasingly focusing on high-quality, well-located units. The biggest annual price increases were seen at Al Reem Island (almost 17%) and Yas Island (15.6%), closely followed by Al Raha Berach (14.6%) and Al Reef (13.9%). Villa sales prices also rose, with an 11.1% hike year-on-year and a 3.5% jump half-on-half. At Yas Island, prices were up by more than 14%, with Saadiyat Island commanding 11.1% rises and Al Reef 7.2%.

Rental rates rose across the board for apartments, with an average year-on-year increase of 14%, with some communities recording much higher-than-average hikes. Rents were up nearly 27% at Yas Island, 21% at Al Reem Island and 16% at Al Reef. While villa rents were up an average 4.7%, there were significant differences in price changes depending on location: Al Reef rents were up more than 9%, while at Yas Island they were down by nearly 2%.

Apartments versus villas

Apartments are still the clear winner in terms of sales market share, but the gap between property types is gradually reducing. In H1, apartments accounted for 73% of sales, down slightly from 76% a year ago, reflecting a modest shift in buyer activity. H1 2025 saw a massive jump in sales of completed villas and townhouses: 72% year-on-year and 13% compared to H2 2024, highlighting buyer preferences for larger, family homes with good amenities.