**NEW SUPPLY CONCENTRATED ACROSS KEY GROWTH CORRIDORS**
Abu Dhabi’s residential supply pipeline continued to expand through
2025, with launches accelerating in the second half of the year as
developer confidence improved. Completions in 2025 remained
moderate and largely apartment-led, with key deliveries including
Radiant Square, Yas Golf Collection and Yas Island Phase 2. New
launches were heavily concentrated in Hudayriyat Island and Al Reem
Island, together accounting for nearly half of total launch activity,
reflecting continued developer focus on established lifestyle
destinations. Looking ahead, the 2026 pipeline is concentrated across
key growth corridors, led by Yas Island and Al Shamkha, followed by
Saadiyat Island and Al Reem Island. These locations are expected to
continue reinforcing their position as major residential hubs. Key
upcoming projects include The Sustainable City, Reem Hills Villas
Phases 1 & 2, and The Grove Saadiyat.
**SALES AND RENTAL MARKETS: MAINTAIN STRONG MOMENTUM**
Sales prices continued to rise in Q4 2025, recording a 32% YoY
increase supported by strong end-user demand, strategic project
launches, and favourable macroeconomic conditions. Apartment sales
prices increased sharply across prime submarkets, with Saadiyat Island
and Yas Island both recording around 33% YoY growth, while Reem
Island and Al Raha Beach saw gains of 35% and 36% YoY respectively.
Villa prices also strengthened, led by Al Reef Villas (+29% YoY) and Yas
Island (+15% YoY), reflecting continued demand for larger family
oriented homes. Rental performance remained positive, with
apartments leading growth across prime locations. Apartment rents
rose by 25% YoY in Saadiyat Island, 26% in Yas Island, and 27% in Reem
Island, reflecting tight supply in key lifestyle destinations. Villa rental
growth was more mixed, with strong increases in Al Reef Villas (+40%
YoY) and Khalifa City (+13% YoY), while rents in more mature
communities such as Yas Island remained broadly stable. Overall, the
market continues to be underpinned by structural demand and limited
prime supply, with performance increasingly concentrated in
established lifestyle and waterfront communities.