Abu Dhabi’s residential real estate sector continued its strong growth during the first quarter of 2026 as apartment prices posted major gains across the emirate. New data showed rising demand for ready homes in established communities and growing activity in the off-plan market.
According to a new report from ValuStrat, Abu Dhabi’s freehold residential market maintained strong momentum during the first three months of the year.
The Abu Dhabi residential price index rose 6.4 percent compared to the previous quarter and increased 17.8 percent year-on-year to reach 148 points in Q1 2026. The latest figures marked a stronger performance than the previous quarter, when prices rose 4.3 percent quarterly and 13.1 percent annually.
Industry experts said Abu Dhabi’s property sector continues benefiting from strong end-user demand and more affordable pricing compared to Dubai. Analysts believe the emirate remains in an earlier stage of the property growth cycle, which could support further gains in the coming years.
Haider Tuaima, managing director and head of real estate research at ValuStrat, said the market’s upward trend reflects growing confidence among buyers and investors.
The report noted that there is currently no clear sign that regional geopolitical tensions have significantly affected Abu Dhabi’s property market. However, analysts said broader regional economic changes may still influence future market performance over time.
Several residential communities recorded strong price increases during the quarter. Al Reef led the market in both apartments and villas, with annual growth rates of 36.6 percent and 26.9 percent respectively.
Saadiyat Island also performed strongly. Villa prices on the island increased 15.4 percent annually, while apartment prices rose 15.3 percent during the same period.
The report showed that supply levels remained relatively controlled, helping support price growth across the emirate. Abu Dhabi completed 2,018 apartments and 392 villas during the first quarter of 2026. That represented only 13.1 percent of the total expected housing supply planned for the year.
Rental prices also remained stable during the quarter. The residential rental index stayed unchanged compared to the previous quarter but increased 5.9 percent year-on-year to 128.1 points.
Occupancy levels across residential properties averaged 88.1 percent, reflecting healthy demand for housing in Abu Dhabi.
Apartment asking rents in Abu Dhabi City averaged Dh121,500 per year, while average villa rents reached around Dh260,000 annually.
The off-plan property sector also showed strong growth during the quarter. Abu Dhabi recorded a record 6,416 off-plan property transactions in Q1 2026. These deals accounted for 80 percent of total sales activity and marked a 20.6 percent quarterly increase.
Average off-plan prices rose sharply by 21.6 percent quarter-on-quarter to Dh2,191 per square foot. The average value of off-plan deals also increased to Dh5.2 million.
Meanwhile, ready home transactions declined 16.3 percent compared to the previous quarter. Analysts linked the slowdown partly to seasonal factors, including Ramadan and Eid holidays.
Despite lower transaction volumes, ready home prices still increased 25 percent annually, showing continued strength in the housing market.
Abu Dhabi’s office sector also recorded positive growth during the quarter. Office rents increased 4.4 percent quarter-on-quarter and climbed 21.3 percent year-on-year.
Average occupancy rates across major business districts reached 90 percent, reflecting stable demand for commercial office space.
Market analysts said Abu Dhabi’s growing population, economic expansion, and infrastructure development continue supporting long-term property demand.
Experts added that the emirate’s relatively lower property prices compared to Dubai may continue attracting investors and end-users looking for value and long-term growth opportunities.
ValuStrat said market performance during the second quarter of 2026 will be watched closely as regional geopolitical and economic conditions continue evolving.
