Abu Dhabi’s residential supply pipeline continued to expand through 2025, with launches accelerating in the second half of the year as developer confidence improved.
NEW SUPPLY CONCENTRATED ACROSS KEY GROWTH CORRIDORS
Abu Dhabi’s residential supply pipeline continued to expand through 2025, with launches accelerating in the second half of the year as developer confidence improved. Completions in 2025 remained moderate and largely apartment-led, with key deliveries including Radiant Square, Yas Golf Collection and Yas Island Phase 2. New launches were heavily concentrated in Hudayriyat Island and Al Reem Island, together accounting for nearly half of total launch activity, reflecting continued developer focus on established lifestyle destinations. Looking ahead, the 2026 pipeline is concentrated across key growth corridors, led by Yas Island and Al Shamkha, followed by Saadiyat Island and Al Reem Island. These locations are expected to continue reinforcing their position as major residential hubs. Key upcoming projects include The Sustainable City, Reem Hills Villas Phases 1 & 2, and The Grove Saadiyat.
SALES AND RENTAL MARKETS: MAINTAIN STRONG MOMENTUM
Sales prices continued to rise in Q4 2025, recording a 32% YoY increase supported by strong end-user demand, strategic project launches, and favourable macroeconomic conditions. Apartment sales prices increased sharply across prime submarkets, with Saadiyat Island and Yas Island both recording around 33% YoY growth, while Reem Island and Al Raha Beach saw gains of 35% and 36% YoY respectively. Villa prices also strengthened, led by Al Reef Villas (+29% YoY) and Yas Island (+15% YoY), reflecting continued demand for larger family oriented homes. Rental performance remained positive, with apartments leading growth across prime locations. Apartment rents rose by 25% YoY in Saadiyat Island, 26% in Yas Island, and 27% in Reem Island, reflecting tight supply in key lifestyle destinations. Villa rental growth was more mixed, with strong increases in Al Reef Villas (+40% YoY) and Khalifa City (+13% YoY), while rents in more mature communities such as Yas Island remained broadly stable. Overall, the market continues to be underpinned by structural demand and limited prime supply, with performance increasingly concentrated in established lifestyle and waterfront communities.
