Aldar Properties, Abu Dhabi’s biggest listed developer, is building 9,000 new affordable homes for rent in Abu Dhabi, valued at Dh2.8 billion ($762.4 million).
Demand for property remains strong in the emirate as population growth continues.
The new developments will be built in Mohamed Bin Zayed City (MBZ City) and Baniyas, Aldar said in a statement on Friday to the Abu Dhabi Securities Exchange, where its shares are traded.
Construction is in partnership with Abu Dhabi’s Department of Municipalities and Transport (DMT), which launched its Value Housing Programme last month to expand access to “high-quality, affordable housing” for residents across the emirate.
Aldar will take charge of development, leasing and management of the new communities, with DMT granting long-term leasing rights over the land.
“As Abu Dhabi’s population continues to grow, there is a significant need for new homes to be delivered that cater to a broad range of demographics residing in the emirate,” said Jassem Busaibe, chief executive of Aldar Investment.
“Our collaboration with DMT will ensure thousands of quality rental homes come to the market in well-connected and amenity-rich communities, ensuring a fully affordable lifestyle for residents.”
Located within Baniyas off the Abu Dhabi–Al Ain (E22) motorway, the first development will comprise 30 buildings with a mixed-use offering of residential units, retail spaces, recreational amenities and open green areas.
The second project will deliver a mixed-use residential community in MBZ City, combining single-occupancy accommodation and multi-tenant apartments with retail units.
The two projects are expected to be completed by 2029.
The new developments come as rents and prices of apartments and villas continue to rise in Abu Dhabi on the back of higher demand, driven by strong economic expansion and population growth.
In 2025, average rents for apartments climbed 12.5 per cent year-on-year, while villa rents rose 5.5 per cent on average, a report from Cavendish Maxwell said.
Apartment prices were up 15.1 per cent, while villas cost 12.2 per cent more compared to the previous year.
Around 7,000 new homes were delivered in Abu Dhabi in 2025, bringing the total supply to 315,000. An estimated 15,900 new homes are scheduled for completion this year, but handovers could be around the 6,500-9,000 mark, the report added.
The total value of property transactions rose by 44 per cent on an annual basis to Dh142 billion last year, while the volume climbed by 52 per cent to 42,814, the Abu Dhabi Real Estate Centre (Adrec) said in February.
The emirate generated Dh99.4 billion in property sales and purchase activity, with volumes reaching 25,604 in the category.
