Abu Dhabi Real Estate: Ready Homes Lead Market

Abu Dhabi Real Estate: Ready Homes Lead Market

In the first half of 2025, Abu Dhabi's housing market witnessed a strengthening demand for completed properties, while sales for off-plan, or yet to be completed projects significantly dropped. According to the latest report by Cavendish Maxwell, approximately 3,300 transactions occurred in the first half, with around 2,300 accounting for completed home sales, and slightly over 1,000 for off-plan sales.

Dominance of Ready Properties

The consultancy highlighted a dramatic decline in off-plan activities: the number of sales fell by 49.5% compared to the second half of 2024, trailing 69.9% behind the figures from the first half of 2024. This is primarily due to the decrease in new project launches, which limited the market's available inventory.

The report points out that the dwindling supply shifted buyers' attention towards ready properties. Although sales of this type fell short compared to the latter half of last year, an annual comparison shows a 26.9% increase. This indicates that demand from end-users and investors in Abu Dhabi remains strong, even with fewer new projects entering the market.

Stable but Moderate Prices and Sales

The total value of transactions in the first half was about 8.9 billion dirhams, reflecting a 33% decrease from the same period in 2024. This can mostly be attributed to the weak performance of off-plan sales. However, an interesting development is the rise in the value of ready home sales — even as the number of units sold decreased.

The average selling price of ready homes increased from 2.1 million dirhams in the second half of last year to 2.5 million dirhams. This rise clearly shows that buyer confidence persists, particularly towards quality and immediately move-in ready properties.

Market Dynamics and Demand Drivers

The current condition of Abu Dhabi's real estate market presents a nuanced picture: overall transaction numbers have decreased, yet demand for completed projects remains strong. This trend is partially attributed to the Vision 2030 economic diversification strategy, aimed at the city's long-term development, facilitating new investments and the influx of an international population.

Residents and migrant families in the city are increasingly seeking modern, well-equipped, family-friendly homes. As a result, developers are compelled to move towards premium properties. The stable economic environment and the growing population generate continuous demand, likely to invigorate the market in the ensuing years.

Expansion of New Developments

According to Cavendish Maxwell's data, around 2,400 new residential units were handed over in Abu Dhabi city during the first half of 2025. However, the development pipeline is poised for significant growth: current plans anticipate the completion of approximately 10,400 units by the end of the year, with over 11,000 new homes expected to be delivered in 2026.

Despite this, the report advises caution: in practice, project deliveries often occur more slowly than planned, so short-term supply may still lag behind demand. This may sustain current price levels, potentially leading to further increases in certain segments.

Investor Outlook and Market Sentiment

The region's economic stability, along with the broader GCC area's positive economic trends, strengthen investor sentiment. As ready properties allow for immediate rental or occupancy, many investors prefer these over off-plan projects, which carry higher risks and longer return times.

Experts anticipate that newly announced projects in the coming months could rejuvenate off-plan segment activity, sparking broader market participation. Nonetheless, ready properties may continue to be more appealing to buyers, especially for those seeking immediate use or quick rental opportunities.

Summary

In 2025, Abu Dhabi's housing market has clearly shifted towards ready properties. The restrained pace of project launches, high demand levels, and economic stability have all contributed to turning buyers' and investors' confidence towards completed homes. While the off-plan segment shows temporary downturn, the market fundamentals are strong and activity could revive in the coming years—especially if new project supply aligns with demand.

(Source of the article is Cavendish Maxwell report.)