Latest news with #CavendishMaxwell
Al Etihad
5 days ago
- Business
- Al Etihad
Investors back Abu Dhabi's diversified realty sector as turnkey homes win market favour
16 July 2025 00:45 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 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 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 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 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 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 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 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 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 balance between showpiece developments and the quieter resilience of the mid-tier is helping the market mature and expand without overheating, and investors are 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% 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 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 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 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 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.'
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.
Zawya
26-06-2025
- Business
- Zawya
Oman: Why do we have so many vacant residential units?
Muscat: While we see several new housing projects being announced every day, we also come across lots of apartments sparsely or hardly occupied across the capital. Giving an insight into the situation, Khalil, Alzadjali, head of Oman, Cavendish Maxwell, said in an interview to the Observer, "Of the 38,000 residential units added to Oman's residential market in 2024, around 15,500 were apartments in Muscat. As these new units come online, many tenants opt to upgrade from older properties to newer, more modern apartments. This transition results in older units being vacated and listed for rent, contributing to the visible number of 'to let' signboards across the city." He added, "Additionally, it takes time for both new and existing units to be absorbed by the market once they become available for rent, which can further increase the apparent vacancy rate, even when overall occupancy remains high." The overall occupancy rate of over 80% is an average across the entire residential sector and does not reflect the variation between different locations, the age of buildings, and property types. "If demand remains strong for newer or better-located developments, some areas and some older buildings may experience higher vacancy rates. This dynamic turnover and the ongoing addition of new supply can make vacancies more visible, even in a generally healthy market. There is a growing demand for apartments in the new downtowns emerging across Oman. Most of these developments offer a modern, integrated lifestyle with convenient access to amenities such as retail and entertainment, all within walking distance in the community. Additionally, their advanced Infrastructure and proximity to business districts make them highly attractive to both Omanis and expatriates seeking a vibrant urban living experience. On the demand for business properties, he said, "The demand remains steady, particularly in urban centres and newly developed commercial districts. This trend is supported by government initiatives under Vision 2040, which aims to diversify the economy and attract international investment. As a result, there is ongoing interest in modern office spaces, retail outlets, and flexible commercial properties that serve both local and international businesses." Recent regulatory changes now restrict the operation of businesses from residential units; a move intended to professionalize and enhance the business environment and encourage companies to relocate to designated commercial spaces. This policy adjustment has contributed to increased Demand for purpose-built business properties, Alzadjali added. "While Oman's service industry has historically been highly local, there are indications that this may gradually change. The development of new downtowns, improved infrastructure, and government incentives is making Oman more accessible to regional and global service providers. Sectors such as tourism, logistics, healthcare, and professional services are seeing growing interest from international participants. As Oman's economy continues to evolve, the service industry may become more international in scope, with broader participation from foreign companies and a wider range of business offerings." There is potential to further enhance the sector by expanding zones where expatriates are permitted to purchase property. Currently, foreign ownership is limited to specific designated areas. Broadening these opportunities would likely attract greater interest from expatriates already residing in Oman, as well as increase investment from international buyers, thereby further boosting overall demand in the market. Additionally, policies that support the development of affordable housing could help address the needs of a broader segment of the population. By increasing the availability of reasonably priced homes, the market may see more balanced growth and improved access to housing for middle-income households. This approach could contribute to a more inclusive and sustainable real estate sector. To achieve a more balanced distribution of real estate activity across the country, continued investment in regional infrastructure, transportation networks, and public services will be essential, he said.
