Abu Dhabi’s real estate market recorded strong growth in the first quarter of 2026, with total transaction value rising sharply, reflecting sustained investor interest and expanding development activity, according to the Abu Dhabi Real Estate Centre.
Total transaction value reached Dhs 66 billion across 13,518 deals in Q1 2026, marking a 160.7 per cent increase compared to Dhs 25.31 billion from 6,896 transactions in the same period last year.
Sales and purchases accounted for Dhs 50.97 billion through 8,940 transactions, up 228.6 per cent in value and 134 per cent in volume year-on-year. Mortgage transactions totalled Dhs 15.03 billion across 4,578 deals, rising 53.4 per cent in value and 48.8 per cent in volume.
Key locations
Hudayriyat Island led transaction activity with around Dhs 11.97 billion in deals. It was followed by Reem Island at Dhs 9.45 billion and Saadiyat Island with Dhs 8.8 billion. Yas Island also recorded transactions exceeding Dhs 5.5 billion.
“This quarter’s performance is a clear reflection of the confidence Abu Dhabi continues to earn from investors both locally and internationally. Reaching a record level of activity is not only a sign of demand, it signals a market that is becoming more disciplined, with a clear focus on long-term investment,” said Rashed Al Omaira.
He added “Our role as ADREC is to ensure this growth is supported through consistent oversight and a regulatory framework that upholds trust and accountability across the sector. This is what gives Abu Dhabi its strength. It is not about short-term momentum, but a market built on strong fundamentals, positioning it as a reliable investment destination”
Supply outlook
Market indicators showed continued demand, with leasing activity maintaining growth into March. The repeat lease price index rose 16 per cent year-on-year, highlighting sustained interest from end users and investors.
The development pipeline is also expanding, with 16 new real estate projects registered during the quarter, up 60 per cent compared to last year. Residential supply is expected to increase by 10,272 units in 2026, reaching 325,248 units, before rising further to 333,564 units in 2027.
Foreign direct investment recorded significant growth, with individual investments reaching Dhs 8.27 billion, up 423 per cent compared to Q1 2025. Investors from 99 nationalities participated, compared to 68 nationalities a year earlier.
Investment zones accounted for around 84 per cent of total foreign investment value, exceeding Dhs 36.4 billion out of Dhs 43.59 billion, representing a 242 per cent increase year-on-year. Key investors came from the United Kingdom, India, Russia, China, Jordan, France, and Egypt.
ADREC said it continues to introduce regulatory measures to support transparency, balanced growth, and market stability.
