Investors back Abu Dhabi's diversified realty sector as turnkey homes win market favour
ISIDORA CIRIC (ABU DHABI)Abu Dhabi's property scene is steadily shifting in favour of ready-to-move-in homes, with buyers increasingly eschewing off-plan purchases for the certainty of completed units. Recent data suggests that sales of completed units now account for the majority of transactions – over 66% – with experts saying the shift is both behavioural and structural, and likely to stay.In its latest report on the emirates residential real estate sector, Cavendish Maxwell recorded 900 transactions for ready properties worth Dh2.3 billion, compared with just 400 off-plan deals in Q1 2025. This follows a full-year share of 61.5% for completed units in Q4 2024, according to ValuStrat data from February.Rohit Bachani, Co-Founder of Merlin Real Estate, said that while short-term supply constraints have driven some of this demand, the real change is behavioural - buyers now prize the tangibility and immediacy of turnkey homes over the uncertainty of off-plan projects.'In the short term, the limited availability of completed units has increased demand for ready-to-move-in properties. However, there is also a clear long-term trend emerging, where buyers are increasingly prioritising tangible, completed assets over the uncertainties associated with off-plan purchases,' he told Aletihad.Cavendish Maxwell data also revealed that, while ready property volumes and values were up compared to the same period last year, off-plan activity dropped both year-on-year and quarter-on-quarter, driven in part by a slowdown in new launches. The average ticket price on ready sales also hit Dh2.5 million – the highest recorded value since Q1 2022.Combined, these findings suggest that Abu Dhabi buyers' growing appetite for turnkey homes is not slowing down.'This trend appears to be more than just a temporary response to supply constraints but rather a shift in buyer behaviour that is likely to persist moving forward,' Bachani added.Andrew Laver, Cavendish Maxwell Associate Director - Abu Dhabi, sees the same pattern emerging.'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,' he said.He added that the three-year-high average ticket price on ready homes demonstrates 'encouraging signs of broader price appreciation', a trend he also expects will continue in the coming months.The luxury market isn't losing steam either. Abu Dhabi's ultra-premium residential space is now boosted by global brands, with projects bearing the names of Waldorf Astoria, Brabus and The W entering the market. The capital recorded Dh6.3 billion in luxury property sales in the first four months of 2025, with branded launches increasing fourfold year-on-year, according to Metropolitan Capital Real Estate.Bachani says the city's less headline-grabbing segments are next in line. He predicts that as the expatriate population grows, 'reasonably priced mid-market properties are likely to receive more focus in the next cycle' as developers try to rebalance their pipelines.'While luxury properties are currently a key driver of growth, there is a strong recognition among developers of the ongoing demand for mid-market housing. The mid-market offers a consistent demand, making it an attractive avenue for sustainable growth,' he added.That balance between showpiece developments and the quieter resilience of the mid-tier is helping the market mature and expand without overheating, and investors are responding.The average transaction value in Q1 reached Dh3.7 billion across 1,300 transactions. Apartment prices were up 12.3% on last year, and 4% quarter-on-quarter, and villas 12.5% and 2.4% respectively.Cavendish Maxwell data also revealed that around 11,900 new homes will be delivered in Abu Dhabi by the end of 2025 - on top of the 600 already delivered during Q1 - with another 7,000 in the pipeline for 2026.But it's not just pricing that's fuelling confidence. Buyers are encouraged by macroeconomic stability, strong project delivery track records, and greater regulatory clarity, all of which are helping the market absorb incoming supply.That perception is supported by policy measures ranging from long-term visa schemes to flexible payment plans for property buyers, many of which were introduced in recent years to improve market transparency and attract international interest.'Abu Dhabi's commitment to sustainable development, transparency, and investor-friendly policies further strengthens confidence in its real estate market, positioning it as a prime destination for both regional and international investors,' Bachani said.And, it seems like the current momentum is exposing undervalued corners of the market that investors would do well to watch.'At present, the high-end rental market and mixed-use developments are significantly undervalued. Office occupancy rates in Abu Dhabi have exceeded 94%, with city-wide office rents rising by 15% year-on-year,' Bachani said.Looking ahead to late 2025 and beyond, he predicts that serviced apartments, branded residences and mixed-use hubs will deliver the next wave of returns.
'Investors should also consider opportunities in serviced apartments and integrated mixed-use communities that offer both residential and commercial amenities. These types of developments align with Abu Dhabi's long-term vision for sustainable urban growth and are likely to experience increased demand in the coming years.'
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