Aldar to Build 9,000 Affordable Rental Homesin Abu Dhabi

 Aldar Properties, the emirate's largest listed developer, has announced a major initiative to construct 9,000 new affordable rental homes, valued at approximately Dh2.8 billion ($762.4 million). The project, developed in strategic partnership with the Department of Municipalities and Transport (DMT), aims to address the surging demand for housing driven by rapid population growth and economic expansion in the capital.

The new developments will be located in two key areas: Mohamed Bin Zayed City (MBZ City) and Baniyas. Under the agreement, Aldar will oversee the development, leasing, and management of these communities, while DMT will grant long-term leasing rights over the land. This collaboration supports the DMT's Value Housing Programme, launched last month to increase access to high-quality, affordable housing for residents across the emirate.

Jassem Busaibe, Chief Executive of Aldar Investment, highlighted the necessity of the project amidst the emirate's demographic shifts. "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," Busaibe stated. He emphasized that the partnership ensures the delivery of thousands of quality rental units within well-connected, amenity-rich communities, fostering a fully affordable lifestyle for residents.

The first phase of the project, situated in Baniyas near the Abu Dhabi–Al Ain (E22) motorway, will consist of 30 buildings featuring a mixed-use design. This community will integrate residential units with retail spaces, recreational amenities, and open green areas. The second project, located in MBZ City, will deliver a similar mixed-use residential community, combining single-occupancy accommodations with multi-tenant apartments and retail outlets. Both projects are scheduled for completion by 2029.

This announcement comes at a time of significant upward pressure on the Abu Dhabi real estate market. According to a report by Cavendish Maxwell, average apartment rents in 2025 climbed by 12.5 percent year-on-year, while villa rents increased by 5.5 percent. Property prices also saw substantial gains, with apartments rising by 15.1 percent and villas by 12.2 percent compared to the previous year.

Market data from the Abu Dhabi Real Estate Centre (Adrec) indicates a robust transaction environment, with the total value of property transactions surging 44 percent to Dh142 billion last year. While around 7,000 new homes were delivered in 2025, bringing total supply to 315,000, the gap between demand and supply remains a focal point for developers and government entities alike. With an estimated 15,900 new homes scheduled for completion this year, the 9,000-unit Aldar project represents a critical step toward stabilizing the rental market and ensuring housing accessibility for Abu Dhabi's growing population.