RIYADH: Abu Dhabi’s residential transaction activity surged 119 percent year on year in the first quarter of 2026, marking one of the strongest development figures across the UAE real estate market as the sector shifted toward a more measured growth phase, according to a report by Colliers.
The analysis said the UAE property market is moving beyond the exceptional momentum recorded in 2025, with performance increasingly shaped by asset quality, infrastructure investment and evolving investor and occupier demand.
The UAE’s property sector has remained one of the strongest-performing real estate markets globally over the past two years, driven by population growth, investor demand, government-backed infrastructure projects and economic diversification efforts.
However, after the rapid expansion seen in 2025, analysts say the market is now entering a more mature phase, with growth increasingly dependent on asset quality, location and long-term demand fundamentals rather than broad-based price surges.
Apartment and villa sales prices in Abu Dhabi rose 32 percent and 21 percent annually, respectively, while average apartment rents increased 15 percent year on year.
“Residential transaction activity in Abu Dhabi continued to accelerate in the first quarter of 2026, with approximately 7,800 deals recorded, reflecting a 10 percent increase quarter on quarter,” the report stated.
While the UAE market continues to show resilience, regional real estate markets across the Gulf are also seeing signs of stabilization despite the ongoing war.
In Qatar, property transaction values increased 28.5 percent year on year to 9.2 billion Qatari riyals ($2.5 billion) in the first quarter of 2026, reflecting sustained investor demand and improving rental market activity.
Saudi Arabia, meanwhile, recorded a more mixed performance, with the Kingdom’s real estate price index declining 1.6 percent year-on-year in the first quarter of 2026 as residential land and apartment prices softened, according to data from the General Authority for Statistics.
Commercial property prices, however, rose 3.4 percent annually, supported by continued demand for office and retail assets.
Abu Dhabi’s mid-end developments posted rental gains exceeding 20 percent, while high-quality communities on Yas Island and select mid-quality developments such as Al Reef recorded annual gains of 7 percent to 10 percent.
The capital added approximately 1,200 residential units during the quarter, with a further 7,000 units scheduled for completion by year-end.
Development activity also reached record levels, with 22 new projects added to the pipeline, including nine branded residential schemes.
Abu Dhabi’s office market remained strong, with occupancy levels exceeding 95 percent and rents across all grades rising between 8 and 20 percent annually. The report said the market continues to show appetite for sustainable Grade A workspace in the capital’s core business districts.
In Dubai, the market continued to move into a more mature phase, supported by strong fundamentals and infrastructure investment.
New apartment deliveries exceeded 10,000 units for the second consecutive month, while around 1,900 villas were delivered during the first quarter of 2026.
Dubai’s rental market remained positive, with average apartment rents rising 2 percent quarter on quarter, supported by demand in the affordable housing segment.
Average villa rents were stable during the quarter, while tenants became more value-driven at the community level.
The Northern Emirates recorded around 5,200 newly launched residential units in the first quarter of 2026, a 60 percent decline from the highs of 2025. Sharjah led new launches with approximately 1,700 units, followed by Ras Al Khaimah, Ajman and Umm Al Quwain.
In Al Ain, apartment and villa rents rose 7 percent and 2 percent year on year, respectively, while citywide retail rents increased 5 percent annually.
Colliers said the next quarter will be important in assessing whether current market sentiment leads to stabilization in values or a shift in transaction activity.
