Latest news with #AbuDhabiRealEstate
Khaleej Times
07-07-2025
- Business
- Khaleej Times
Demand spike, price gains fuel Abu Dhabi housing boom
Abu Dhabi's residential real estate sector is gathering strong momentum in 2025 propelled by robust demand, record-high sales prices, and a visible shift toward ready homes and spacious family residences. Despite a scheduled delivery of 11,900 new homes by year-end, experts warn that surging population growth, rising investor confidence, and a scarcity of new off-plan projects could cause demand to outstrip supply across several key neighbourhoods, market watchers say. Cavendish Maxwell's latest market report shows that the UAE capital added 600 residential properties in the first quarter, setting the stage for 12,500 new homes to be completed by year-end, with another 7,000 units already in the pipeline for 2026. Yet, analysts suggest this may fall short of meeting the growing needs of end-users and investors, especially as the city continues to attract residents and capital on the back of infrastructure development, social reforms, and long-term residency initiatives. Average residential property prices in Abu Dhabi hit Dh2.5 million in the first quarter—the highest figure in three years—while total sales reached Dh3.7 billion across 1,300 transactions. Ready properties, which comprised 900 of these deals, dominated market activity, underlining a preference shift towards completed homes over off-plan developments. Apartments continued to lead in transaction volume, but villas and townhouses recorded stronger price growth and increasing buyer interest. Year-on-year, apartment prices jumped 12.3 per cent, with a 4.1 per cent gain from the previous quarter. Villas rose 12.5 per cent annually and 2.4 per cent quarter-on-quarter, with Yas Island leading the price rally. Villas there climbed 15.5 per cent from Q1 2024, followed by Al Reef (4.4 per cent) and Saadiyat Island (1.0 per cent). These increases are being driven by a growing segment of family buyers looking for larger spaces, gardens, and long-term living options. The report noted a drop in overall transaction volumes from the previous quarter, which analysts attribute to seasonal slowdowns during Ramadan and Eid. Nevertheless, the strength of the market was visible in the record-high average sale price of Dh2.5 million, alongside mortgage activity totalling Dh1.7 billion across 800 loans. Lending for villas and townhouses surged nearly 60 per cent from a year earlier, while mortgage uptake for apartments declined—further highlighting the pivot in buyer preferences. Andrew Laver, associate director at Cavendish Maxwell – Abu Dhabi, noted that the capital's real estate sector is showing resilience, with price appreciation expected to continue. 'There is sustained demand for ready homes and a clear reduction in off-plan launches. We are also seeing encouraging signals in secondary market activity and bank financing, which reflect healthy investor sentiment and end-user confidence,' he said. Beyond pricing and transaction dynamics, the Abu Dhabi market is benefiting from structural support. The emirate's government has introduced a range of investor-friendly initiatives—from long-term Golden Visas and retirement visas to enhanced urban planning and lifestyle infrastructure. New public transport projects, international school openings, and cultural landmarks have made Abu Dhabi more attractive for both expatriate families and institutional investors. A recent report by CBRE corroborates these trends, noting that Abu Dhabi's residential rents have also risen significantly. Average apartment rents increased by 5.5 per cent in the first half of 2025, while villa rents jumped by 6.3 per cent, further boosting yields and adding appeal for investors. With residential occupancy rates also climbing, developers are increasingly looking to fast-track the delivery of high-demand inventory. According to ValuStrat, transaction volumes in premium communities like Al Raha Beach and Al Reem Island are growing steadily, with off-plan inventory becoming scarce. As a result, the secondary market has taken centre stage, benefiting sellers and landlords alike as prices firm up and listings shorten. While some analysts remain cautious about over-exuberance, citing global inflation concerns and fluctuating interest rates, the outlook for Abu Dhabi's housing market remains largely upbeat. Strong economic fundamentals, consistent oil revenues, and the UAE's broader economic diversification strategy continue to provide stability and investor reassurance. Relay experts argue that given the current demand surge, the real challenge may not be selling homes—but building enough of them. With fewer new launches and escalating interest in move-in-ready properties, the current trajectory suggests that supply constraints could intensify in 2026 unless more projects are greenlit soon. 'For now, Abu Dhabi's real estate market is in a sweet spot: undersupplied, competitively priced, and bolstered by confidence. The next 18 months will test how well developers and policymakers can sustain this delicate balance of growth and affordability,' they said.
Arabian Business
07-07-2025
- Business
- Arabian Business
UAE real estate: Abu Dhabi to add over 11,900 new homes by end of 2025 amid rising housing demand
Abu Dhabi will add 11,900 new homes to its residential real estate inventory by the end of 2025, but population growth and increased investor interest could mean that demand for housing outpaces supply, according to real estate advisory and property consultant Cavendish Maxwell. The UAE capital delivered 600 new residential properties in Q1 this year, meaning a total of 12,500 new homes will come to the market by the end of 2025. Another 7,000 are in the pipeline for Abu Dhabi in 2026, Cavendish Maxwell said. Strong demand boosts Abu Dhabi property prices Cavendish Maxwell's report on the Abu Dhabi residential real estate sector shows that in Q1 2025, sales values reached AED 3.7 billion across 1,300 transactions. Buyers paid an average AED 2.5 million per property – the highest quarterly value since Q1 2022. Apartment prices were up 12.3 per cent on last year, and 4 per cent quarter-on-quarter, whilst villas were 12.5 per cent and 2.4 per cent respectively. Ready property transactions increased year-on-year and are most in demand, accounting for 900 transactions worth a total AED 2.3 billion. Mortgage values hit AED 1.7 billion across 800 loans. Whilst ready property volumes and values were up compared to the same period last year, they were down quarter-on-quarter, potentially reflecting reduced activity post-festive season and less trading during Ramadan and Eid. Andrew Laver, Cavendish Maxwell Associate Director – Abu Dhabi, said: '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 AED 2.5 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.' There were 1,300 residential real estate transactions in Q1, with sales values reaching AED 3.7 billion. The majority – 900 – of these were for ready units, with off-plan properties accounting for 400 deals. Off-plan activity declined year-on-year and quarter-on-quarter, mainly because of fewer off-plan launches. Sales of ready properties increased year-on-year. The reduction in transaction volumes was mirrored by a decline in sales values. Despite the slowdown, the average ticket price on ready sales hit AED 2.5 million – the highest recorded value since Q1 2022. Apartments, villas and townhouses all saw price increases of over 12 per cent year-on-year. Quarter-on-quarter, apartment prices were up 4.1 per cent and villas/townhouses 2.4 per cent. Buyer activity continues to be driven by growing investor confidence, end-user interest, a macroeconomic environment and rental yields. In addition, initiatives from the Abu Dhabi government and developers – including payment plans, infrastructure development, long-term residency options and schemes to enhance quality of life in the capital – are stimulating real estate sales and supporting price growth. The biggest prices rise for villas was in Yas Island (15.5 per cent year-on-year, 3.5 per cent quarter-on-quarter), followed by Saadiyat Island (1.0 per cent and 2.3 per cent). Al Reef prices rose 4.4 per cent and 2.6 per cent respectively. Whilst apartment sales continue to dominate Abu Dhabi's residential sector, their market share fell year-on-year, indicating a shift towards villas and townhouses, whose market share showed both an annual and quarterly increase. Growing demand for villas and townhouses is largely from end-users, and in particular from families potentially seeking more space, a garden and place to live long-term. AED 1.7 billion worth of mortgages across 800 individual loans were secured in Q1, with transactions on villas and townhouses up almost 60 per cent year-on-year and 3.5 per cent compared to the previous quarter, reinforcing higher demand for these properties and a shift towards end-users. By contrast, there was a decline in mortgage lending for apartments.
Zawya
07-07-2025
- Business
- Zawya
11,900 new homes to be delivered in Abu Dhabi by year end, but demand for residential real estate could outstrip supply
Apartment sales dominate, villas gain ground in UAE capital Dubai – Abu Dhabi is set to add 11,900 new homes to its residential real estate inventory by the end of 2025, but population growth and increased investor interest could mean that demand for housing outpaces supply, according to new insight from leading real estate advisory and property consultant, Cavendish Maxwell. The UAE capital delivered 600 new residential properties in Q1 this year, meaning a total 12,500 new homes will come to the market by the end of 2025. Another 7,000 are in the pipeline for Abu Dhabi in 2026, Cavendish Maxwell said. Cavendish Maxwell's latest report on the Abu Dhabi residential real estate sector also shows that in Q1 2025: Sales values reached AED3.7 billion across 1,300 transactions Buyers paid an average AED2.5 million per property – the highest quarterly value since Q1 2022 Apartment prices were up 12.3% on last year, and 4% quarter-on-quarter; villas were 12.5% and 2.4% respectively Ready property transactions increased year-on-year and are most in demand, accounting for 900 transactions worth a total AED2.3 billion Mortgage values hit AED1.7 billion across 800 loans While ready property volumes and values were up compared to the same period last year, they were down quarter-on-quarter, potentially reflecting reduced activity post-festive season and less trading during Ramadan and Eid Andrew Laver, Cavendish Maxwell Associate Director – Abu Dhabi, said: '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.' Transaction trends … There were 1,300 residential real estate transactions in Q1, with sales values reaching AED3.7 billion. The majority – 900 – of these were for ready units, with off-plan properties accounting for 400 deals. Off-plan activity declined year-on-year and quarter-on-quarter, mainly because of fewer off-plan launches. Sales of ready properties increased year-on-year. As would be expected, the reduction in transaction volumes was mirrored by a decline in sales values. Despite the slowdown, the average ticket price on ready sales hit AED2.5 million – the highest recorded value since Q1 2022. … and sales price stats Apartments, villas and townhouses all saw price increases of over 12% year on year. Quarter-on-quarter, apartment prices were up 4.1% and villas/townhouses 2.4%. Buyer activity continues to be driven by growing investor confidence, end-user interest, a stable macroeconomic environment and competitive rental yields. In addition, initiatives from Abu Dhabi Government and developers – including flexible payment plans, infrastructure development, long-term residency options and schemes to enhance quality of life in the capital – are stimulating real estate sales and supporting price growth. Hot locations The biggest prices rise for villas was in Yas Island (15.5% year-on-year, 3.5% quarter-on-quarter), followed by Saadiyat Island (1.0% and 2.3%). Al Reef prices rose 4.4% and 2.6% respectively. Villas and town houses gain ground While apartment sales continue to dominate Abu Dhabi's residential sector, their market share fell year-on-year, indicating a shift towards villas and townhouses, whose market share showed both an annual and quarterly increase. Growing demand for villas and townhouses is largely from end-users, and in particular from families potentially seeking more space, a garden and place to live long-term. More mortgages for villas AED1.7 billion worth of mortgages across 800 individual loans were secured in Q1, with transactions on villas and town houses up almost 60% year-on-year and 3.5% compared to the previous quarter, reinforcing higher demand for these properties and a shift towards end-users. By contrast, there was a decline in mortgage lending for apartments. About Cavendish Maxwell Cavendish Maxwell is one of the Middle East's leading real estate advisory groups and property consultants, with offices in Dubai, Abu Dhabi, Sharjah, Ajman, Kuwait City and Muscat. The company is a member of the Royal Institution of Chartered Surveyors (RICS) and offers a full range of property-related services, including valuation, strategic advisory, research, project and building consultancy and investment and commercial agency expertise. With a team of experienced professionals and a commitment to delivering exceptional service, Cavendish Maxwell has established itself as a trusted advisor in the regional real estate market.
The National
20-06-2025
- Business
- The National
Aldar generates more than Dh3.5bn in home sales at Fahid Island launch
Aldar Properties generated more than Dh3.5 billion ($953 million) in sales from Fahid Beach Residences and The Beach House, the island's first residential developments released during launch week, amid soaring property demand. The Fahid Island homes attracted a range of buyers. Expatriate residents and overseas purchasers accounted for 67 per cent of total sales, the developer said in a statement on Friday. Buyers from the UAE, Russia, the UK and China made up the top nationalities by sales volume. The company, Abu Dhabi's biggest listed developer, said 42 per cent of buyers were under the age of 45 and 67 per cent of them were first-time Aldar customers. Watch: Abu Dhabi to develop new island with one-bed apartments priced at $1 million Key demand drivers include Fahid Island's position as Abu Dhabi's first coastal wellness destination, its waterfront lifestyle and proximity to Kings College School Wimbledon, which sits within the wider wellness-inspired masterplan. 'The sales serve as a powerful validation of our vision to place wellness at the heart of community living,' Jonathan Emery, chief executive at Aldar Development, said. 'The success reflects Abu Dhabi's position as one of the world's most desirable investment and lifestyle destinations.' A one-bedroom unit at the new development is priced from Dh3.5 million. The massive project, which has a gross development value of Dh40 billion, will be built in phases. The first residential development – Fahid Beach Residences, with seven buildings – is expected to be complete by 2029. Spread across 2.7 million square metres, with an 11km coastline, Fahid Island is being built between Yas Island and Saadiyat Island. It will have amenities including running tracks and cycling routes, with 30 per cent of the area dedicated to natural spaces. Residential property sale prices in Abu Dhabi rose by 11 per cent annually last year amid higher demand and a supply shortage, according to a March report by real estate company Cushman & Wakefield Core. Aldar launches Fahid Island – in pictures The Abu Dhabi Real Estate Centre reported that total transaction value in the emirate grew by 34.5 per cent to Dh25.3 billion across 6,896 deals in the first quarter of 2025, compared with Dh18.8 billion from 5,773 transactions in the same period of 2024. Off-plan sales in April across the UAE capital were up 75 per cent month-on-month at Dh804 million, driven by an increase in activity on Saadiyat Island and Al Jubail Island, EFG Hermes said in May. Aldar Properties accounted for the largest off-plan market share, contributing 70 per cent of activity in April. The announcement of a Disneyland Abu Dhabi theme park on Yas Island has further supported the property market. In response to the 'overwhelming demand' for Fahid Beach Residences, Aldar accelerated the launch of Fahid Island's second residential offering, The Beach House. The new development comprises 11 towers including studios and three-bedroom apartments. It offers views of the sea and Abu Dhabi skyline, shoreline access and connectivity to Coral Drive, the island's boutique retail boulevard. Aldar said on Friday it has planned further residential launches for Fahid Island. The island's waterfront promenade will have a combination of retail, dining and art experiences. Coral Drive will have outlets, concept stores, art galleries, a ballet school, cafes and public artworks. Kite surfing, paddle boarding, illuminated night swimming, and volleyball will also available to residents of the island.
Arabian Business
10-06-2025
- Business
- Arabian Business
Abu Dhabi real estate: Luxury property sales hit $1.7bn in first four months of 2025
Abu Dhabi's luxury property market has recorded AED 6.3 billion in sales during the first four months of 2025, with branded residence launches increasing fourfold compared to the previous year. The market has seen a 5 per cent increase in luxury transactions valued at AED 7 million and above, driven by demand from high-net-worth individuals, international investors and long-term residents, according to Metropolitan Capital Real Estate (MCRE). More than half of these transactions were in the AED 10 million and above segment, reflecting confidence in Abu Dhabi's premium real estate sector. Abu Dhabi luxury market soars Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate, said: 'Abu Dhabi has firmly positioned itself as a premier destination for luxury and lifestyle-led investments. We have witnessed investors initially seeking to purchase a single property, ultimately expanding their portfolios due to a strong belief in the market's potential. We are also seeing an increase in the number of long-term residents who are opting to purchase properties in Abu Dhabi instead of renting, reflecting the growing confidence in the city's real estate market.' The rise of branded residences has been one of the strongest growth engines in 2025, with developers launching new lifestyle-centric communities across Saadiyat Island, Al Reem and Mariah Island. At least 25 branded residences are expected to be announced in 2025, up from just a handful in 2024. , the highest residential transaction in Abu Dhabi to date. The secondary luxury market has also performed well in 2025, with a 158 per cent increase in transaction volume year-on-year. The secondary luxury market saw nearly AED 3 billion in resale activity until April of this year, with super-luxury properties (AED 10mn+) accounting for over AED 2.6 billion, or 60 per cent of the total secondary market volume. In just four months, secondary super-luxury transactions have already reached 22 per cent of 2024's full-year total. MCRE has registered an 11.5 per cent share of the market for properties priced at AED 7 million and above. The company facilitated over AED 700 million in transactions in this category, including AED 530 million in the ultra-luxury segment (AED 10mn+) alone, capturing 11 per cent of that market. Property prices in branded projects now average AED 2,500 to AED 4,000 per sq. m., depending on location, which is lower than comparable properties in Dubai and Ras Al Khaimah, according to Ratskevich. The Abu Dhabi market witnessed a shift in investor demographics in 2024, according to MCRE. While Russian and CIS investors remained prominent at the beginning of the year, their interest waned in Q2, paving the way for a surge in demand from UK, US, UAE nationals and citizens from other GCC countries. Almost half of the buyers are end users with investors looking to diversify their portfolio. Key locations shaping Abu Dhabi's high-end market include Saadiyat Island, Al Hidayriyyat, which has already surpassed 20 per cent of its full-year sales from last year, Yas Island and Reem Island.
