Abu Dhabi is building fast and people are paying attention. A new market study from Cavendish Maxwell shows that the city plans to complete 8,000 new residential units by the end of 2025. Another 12,800 units are scheduled for delivery in 2026. Combined, this brings 20,800 new homes to the market by 2026-end.

In the first nine months of this year, 2,700 apartments, townhouses and villas were already added to the market. Demand stayed strong among home-owners and investors. But forecasts for 2027 and 2028 — 12,400 and 21,400 units — may not hit full delivery numbers. The trend points to a slower, staggered rollout rather than big sudden hand-overs.

Why a slower delivery schedule is not a bad sign

Andrew Laver from the same advisory firm explains that this pace helps the city release homes steadily. It stops the market from getting flooded too fast. It gives demand room to catch up and keeps prices firm. This approach has been the norm in the capital for years.

It is a classic supply-and-timing strategy. You might not get everything exactly when it is called for. But you also avoid market shock. That’s why Abu Dhabi tends to feel confident, predictable and stable to long-term buyers.

Q3 2025 sales showed real momentum

Based on the report, Q3 of 2025 recorded 6,400+ residential transactions. Out of those, 5,100 were apartments. The rest were villas and townhouses. Most of the buyers picked off-plan properties.

Apartment sales dominated numbers because:

• Investors moved toward smaller units with rental appeal.
• Young professionals, small families, and new residents preferred apartments over villas.
• Limited villa launches shifted demand toward apartment communities.

Villa and townhouse sales still grew 8.3% compared to Q2, and 0.3% year-on-year. But apartments stayed the clear leader.

Sales value in Q3: AED 20.5 billion

• AED 16.3 billion of this came from off-plan purchases.
• The remaining portion came from ready property sales.

This is a strong indicator. Buyers are deciding early before projects complete. They want better payment timing. They want future equity while prices are still rising.

Price movement at a glance (Q3 insights)

Prices did not cool down. They climbed.

Apartment prices up nearly 15% vs 2024

Communities that stood out with the biggest average price increases:

• Yas Island
• Al Reem Island

Villa prices up nearly 12% year-on-year

Top communities in villa price lift:

• Yas Island
• Saadiyat Island (home to Saadiyat communities like Saadiyat Beach and Mamsha)

Why these price lifts matter:

• They show real buyer demand, not hype.
• They indicate resale value potential once projects hand over.
• They reflect strong interest from residents planning to stay long-term.

Rental growth is outpacing expectations

Rent prices also moved up:

Apartment rents up 14.2% average

Rental growth peaked in:

• Yas Island → up to 25% rental increase.

Villa rents up 5.1% average

Rental growth on villas was slower than apartments because apartment stock absorbed new resident demand faster.

What this means for landlords

Apartment owners are winning the rental market right now. They are securing tenants fast. Monthly yields look stronger on 1-3 bedroom units than large villas. If you want quicker rental uptake, apartments are the practical move.

If your goal is higher monthly rental occupancy, shorter purchase cycles, and scalable investment, apartments have the upper hand in 2025 and 2026.

Spotlight: 3 Abu Dhabi communities driving demand

Let’s talk about the ones that matter most right now.

1. Al Reem Island

Al Reem Island is one of the most mature residential hubs in the city. It sits close to the mainland, so commute time is low. It attracted high rental demand from professionals working in Abu Dhabi and finance staff commuting to business districts.

Property mix here includes:

• Studio apartments
• 1-3 bedroom apartments
• Waterfront residential towers
• Family-friendly apartment clusters

Why it stands out:

• Prices increased almost 15% this year versus 2024 averages.
• It consistently ranks high for rental occupancy.
• It offers water edge living without long distance isolation from central areas.

Investor note:
Units in Reem are great for steady leasing, resale appeal and future asset appreciation once project phases complete in 2026-2028.

2. Yas Island

Yas Island is loud in the best way.
It is a lifestyle island but also a major residential favorite. It holds entertainment, beaches, retail, dining, and home communities. Demand here comes from residents and investors who want properties that lease fast and hold resale lift.

Property types include:

• 1-3 bedroom apartments
• Luxury villa communities
• Townhouses
• Master community cluster projects
• Waterfront and golf edge homes
• Resort-style community living

Market insights:

• Apartment rent increased up to 25% in Q3.
• Apartment prices increased nearly 15% compared to 2024.
• Villa prices rose nearly 12% year-on-year.
• Townhouse and villa sales grew 8.3% vs Q2.

Why renters love it:

• Job professionals, young families and long-stay residents picked Yas for convenience.
• Tourist-linked leasing also helps yields if owners choose short-term rental paths.
• The name alone carries strong leasing appeal.

Investor note:
If your plan is rental scale, occupancy, resale lift and early future equity — Yas is a strong long-term portfolio anchor.

3. Saadiyat Island

Saadiyat Island is the calm avatar of luxury. But calm does not mean slow.
It is home to cultural landmarks, beaches, and premium residential communities. Villas here hold one of the highest equity charts for capital growth. It appeals to buyers who want long-term asset holding in Abu Dhabi’s premium districts.

Property mix includes:

• Beach-front apartments
• Luxury villas
• Branded residential clusters
• Cultural district residences
• Eco-aware home communities
• 1-4 bedroom apartment options
• High-end gated villa neighborhoods

Market insights:

• Villa prices rose nearly 12% year-on-year.
• It remains preferred by buyers who plan to stay and grow local equity.
• The rental lift on villas was slower than apartments (5.1%), but equity growth remains strong.

Why it stays in demand:

• It has proven resale appetite.
• The buyer cohort is international, selective, financially strong.
• New deliveries targeted for 2026-2028 may keep supply limited enough for price support.

Investor note:
Saadiyat is ideal if your plan is wealth-holding, patient equity lift, and portfolio diversification with premium villa assets.

Who is buying in Abu Dhabi right now?

The report shows 3 strong groups:

1. Rental investors → Prefer studio to 3-bed apartments. They want quick tenant onboarding.
2. End-users → Choose apartments for commute and villa clusters where available.
3. New residents → Mostly professionals, young families, first-time home buyers, small households.

These groups are not emotional buyers. They look at math, timelines, rent, resale appetite, and market stability.

Action plan for buyers and investors

If you are planning a move before 2026-end, here’s the smartest way to approach Abu Dhabi properties.

✅ Step 1: Decide your goal

• Want rental occupancy fast? → Pick 1-3 bedroom apartments on Reem or Yas.
• Want long equity holding? → Pick villas on Yas or Saadiyat.
• Want balanced returns? → Mix 2 beds on Reem with townhouses on Yas.
• Want safe portfolio hedge? → Keep at least one Saadiyat villa asset.

✅ Step 2: Choose payment timing

• Off-plan purchases are leading transactions now (AED 16.3 billion).
• Buyers are choosing projects delivering in 2025-2026 for price timing.
• Early entry = better equity position when hand-overs complete.

✅ Step 3: Map rental and resale appetite

• Reem = strong professional renters, central access, reliable occupancy.
• Yas = renter demand + resale appeal + short-term rental upside if permitted.
• Saadiyat = premium resale market, slower leasing but stronger equity.

✅ Step 4: Track delivery realities

• Expect some delivery delays in 2026-2028 pipelines.
• Staggered hand-overs keep price stability.
• Less-than-called delivery numbers may support better resale appetite later.

✅ Step 5: Prioritize practicality over scale hype

• Apartment numbers may look smaller but lease faster.
• Villa rentals move slower but equity grows stronger.
• Mix your portfolio depending on timeline and yield model.

The big takeaway

Abu Dhabi is adding 20,800 homes by 2026-end. Demand is still ahead of delivery speed.
Apartment prices climbed nearly 15% vs 2024. Villas climbed nearly 12% year-on-year. Apartment rents jumped 14.2% average. Villas rose 5.1% rental value. Yas Island rents peaked at 25%. AED 16.3 billion of Q3 purchases were off-plan. 6,400+ Q3 transactions placed apartments at 5,100 purchases. Staggered hand-overs may continue.

This is not a cooling market. It is a steady-growth environment with supply timing playing a big role.
It is a market led by math-aware buyers, long-stay residents, and rental investors who want clarity.

If you plan to buy new off-plan projects in Abu Dhabi, decide early. Choose smart communities. Match goal to property type. Expect some timing shifts on deliveries. Enjoy rising rent and resale appetite as projects hand over.