Residential buyers in Abu Dhabi are increasingly turning to emerging communities as prices in established prime districts remain high, according to Metropolitan Capital Real Estate.
Emerging areas
The agency says areas such as Yas Canal and Al Bahiyah, Al Shamkha, Masdar City, Al Raha Beach and Gardens, and Hudayriyat are gaining attention due to relatively lower entry prices and ongoing infrastructure development.
Hudayriyat recorded Dhs 14.78 billion in sales across more than 2,600 transactions. Yas Canal and Al Bahiyah reached Dhs 6.57 billion in sales.
Al Raha Beach and Gardens has remained one of the stronger-performing waterfront locations. Al Shamkha and Masdar City also reported steady demand and price growth, particularly in the second half of 2025.
Evgeny Ratskevich, Chief Executive Officer of Metropolitan Capital Real Estate, said: “We’re seeing buyers become more strategic. They’re no longer focused only on established prime addresses; they’re looking at where the next prime locations will be. Communities with strong infrastructure, waterfront access, lifestyle appeal and clear master planning are naturally rising to the top of that list.”
Population and rents
Abu Dhabi’s population has passed 4.1 million, rising more than 50 percent over the past decade. The UAE population is projected to reach about 12.2 million by 2030, supporting long-term housing demand.
Rental rates continue to increase. Apartment rents are up more than 11 percent year on year, while villa rents have risen by over 4 percent. Data from the Abu Dhabi Real Estate Centre shows nearly 238,000 residential rental contracts as of January 2026, reflecting steady tenant demand.
Infrastructure projects
Several large projects are influencing buying patterns. The Dhs 3.5 billion Yas Canal Housing development and Hudayriyat’s 51 million square metre island master plan are among the major schemes underway. Expansion in Masdar City and more than Dhs 60 billion in investment on Al Maryah Island are also contributing to growth.
Upcoming transport links, including the Abu Dhabi Tram and the Etihad Rail passenger network, are expected to improve connectivity across newer districts.
While prime areas such as Saadiyat Island, Yas Island and Reem Island continue to command higher prices, emerging communities are trading at lower levels. Many are offering mid- to high-single-digit rental yields, in line with wider market averages.
Expatriate and foreign buyers now account for most residential transactions in Abu Dhabi, with emerging districts seeing strong interest from first-time buyers and long-term residents seeking more space.
Ratskevich said: “Waterfront locations and fully master-planned communities with clear infrastructure timelines are already moving closer to prime status. For buyers and investors, the next few years represent a real opportunity to enter these areas before pricing fully catches up.”
The agency advises buyers to review developer track records, infrastructure timelines and long-term resale prospects before committing to projects in newer areas.
tanvir@dubainewsweek.com
