Abu Dhabi’s residential supply pipeline remains moderate, with limited completions in Q3 2025.
ABU DHABI’S DEVELOPMENT PIPELINE PICKS UP PACE
Abu Dhabi’s residential supply pipeline remains moderate, with limited completions in Q3 2025. Around 1,423 units are expected in Q4 2025, though some spillover into early 2026 is likely. Key upcoming projects include subsequent phases of Al Jurf Gardens, Jubail Island, and Al Reeman. 2026 is projected to see approximately 5,000 new units, before a major supply surge in 2027 and 2028, when 18,900 and 12,900 units respectively are anticipated. This two-year delivery wave will mark the peak of the current development cycle, before tapering in 2029. Much of the future pipeline is concentrated across key prime islands, with Yas Island, Reem Island, Hudayriat Island Fahid Island, and Masdar City, together making up over 50% of upcoming completions over the next 4 years. This concentration reinforces the emirate’s strategic shift toward high-quality waterfront and mixed-use developments, reflecting both sustained end-user and investor interest and the government’s long-term urban growth vision.
SALES AND RENTAL MARKETS: MAINTAIN STRONG MOMENTUM
Sales prices continued to rise in Q3 2025, recording a sharp 25% YoY increase supported by strong end-user demand, strategic project launches, and favourable macroeconomic conditions. Apartments on Saadiyat Island achieved the highest capital values at AED 4,255 per sqft, up 14% YoY, driven by premium waterfront and branded residence developments. Yas Island recorded the sharpest price increase at 30%, followed by Al Raha Beach and Reem Island at 27%, reflecting sustained appetite for prime waterfront living and new launches at higher price points. Rental growth remained equally strong, with city-wide rents up 25% YoY. Apartments led this trend, supported by tight supply and high absorption levels. Reem Island (34%) and Yas Island (29%) recorded the highest rental uplifts, while villa rents grew at a more moderate pace. This continued expansion in the rental market is underpinned by Abu Dhabi’s sustained population growth, expanding free zones, and rising demand from finance, technology, and media occupiers, which continue to drive both leasing and ownership activity.
