Abu Dhabi to add 9,000 affordable rental homes under new Dh2.8bn partnership
Baniyas and MBZ City developments target growing population demand
ABU DHABI – Abu Dhabi’s Department of Municipalities and Transport (DMT) has partnered with Aldar to deliver 9,000 rental homes across two new integrated communities, marking a significant expansion of affordable housing in the emirate.
The developments will rise in Mohamed Bin Zayed City and Baniyas, addressing growing demand for quality accommodation. The initiative forms part of the Value Housing Programme, aimed at widening access to housing options across income segments.
The agreement signals a deepening collaboration between the government entity and the developer, with Aldar taking responsibility for development, leasing and long-term management. DMT will provide long-term land leasing rights, ensuring the projects align with Abu Dhabi’s urban planning priorities.
Project scope
With a gross development value of Dh2.8 billion, the two communities will add to Aldar’s expanding develop-to-hold portfolio, which now stands at Dh20.1 billion. The pipeline already includes residential rental schemes on Yas Island and in Al Shamkha, reflecting a broader push to strengthen the emirate’s rental market.
The Baniyas development will be strategically located along the Abu Dhabi–Al Ain (E22) highway and will feature more than 30 residential buildings. Plans include a mix of housing units alongside retail outlets, recreational facilities and landscaped green spaces designed to support community living.
Community plans
In Mohamed Bin Zayed City, the second project will introduce a mixed-use residential environment combining single-occupancy units and multi-tenant apartments. Supporting infrastructure will include on-site amenities and retail offerings tailored to residents’ everyday needs.
Both developments are designed with accessibility in mind, offering direct connections to major road networks and public transport links. The communities will also feature professionally managed facilities, ensuring a consistent living standard for residents.
The agreement was witnessed by senior officials including His Excellency Nasser Saleh Farah, Director General of Financial Affairs at DMT. It was signed by His Excellency Ahmed Fadhel Almehairbi, Director General of Abu Dhabi Municipality, and Jassem Saleh Busaibe, Chief Executive Officer of Aldar Investment.
Almehairbi stated that the partnership reinforces a shared commitment to delivering high-quality housing that supports families and individuals, while contributing to stronger, more inclusive communities. He highlighted the alignment with the UAE Year of Family, emphasising the role of housing in enhancing social cohesion.
Busaibe noted that Abu Dhabi’s rising population continues to drive demand for diverse housing options. He added that the collaboration will bring thousands of new rental homes to well-connected locations, offering residents access to amenities and essential services within integrated neighbourhoods.
Both projects are scheduled for completion in 2029, with a diverse unit mix aimed at catering to a broad demographic base.