Abu Dhabi’s residential property market recorded its second strongest quarter on record in the first three months of 2026, supported by strong demand for off-plan homes and rising property prices.
Transaction volumes in Abu Dhabi City exceeded 7,200 in Q1 2026, slightly below the record of more than 7,600 deals seen in Q4 2025, according to Savills.
Activity remained high in January and February, continuing the momentum from last year. However, March saw a slowdown due to regional geopolitical tensions, along with Ramadan, Eid Al Fitr and early school holidays.
Off-plan dominance
Off-plan properties continued to lead the market, making up 81 percent of total transactions, up from 80 percent in the previous quarter.
High-profile launches supported demand, including Manchester City Yas Residences by Ohana Development, which generated Dhs6 billion in sales within 72 hours.
Apartments dominated sales, with a record 5,200 transactions, accounting for 73 percent of total deals. This marks the third straight quarter where apartment sales exceeded 4,000 units.
Price growth
Property prices rose across the market during the quarter. Off-plan rates increased by 39 percent quarter-on-quarter to Dhs23,067 per square metre, compared to Dhs16,540 at the end of 2025.
The ready property segment also saw gains, with average prices rising 2.66 percent to Dhs15,480 per square metre.
Savills noted that some March transactions may reflect deals agreed earlier in the quarter, and may not fully represent current market conditions.
Investor activity
March data showed a shift in off-plan transactions, with resale activity rising from 4 percent to 15 percent of total deals. This points to increased investor participation and reassignment transactions.
Ali Ishaq, Head of Residential Agency Abu Dhabi, Savills Middle East, said: “Abu Dhabi’s residential market has demonstrated remarkable resilience, delivering near-record transaction volumes in Q1 despite a complex backdrop of regional geopolitical developments and seasonal factors. The strength of January and February is clear, with March activity reflecting a confluence of external factors, including regional geopolitical developments, Ramadan and the school spring break. Transaction volumes in March declined by 16% month-on-month; however, monthly data may not fully capture underlying trends due to typical lags in registration and reporting. Overall, Q1 2026 accounted for 35% of full-year 2025 transaction volumes, underscoring the sustained depth of demand across the market.
What is particularly encouraging is that underlying demand fundamentals remain intact. The off-plan segment continues to attract strong interest, and we are seeing buyers from both within the UAE and internationally remain committed to Abu Dhabi’s long-term growth story. Supply constraints, limited near-term handovers, and the emirate’s continued investment in major infrastructure and cultural assets provide a compelling medium-term case for the market.
The coming quarters will be important in establishing the market’s direction, but for those with a long-term perspective, the Abu Dhabi story remains a strong one.”
New supply
Developers launched around 4,000 new units across 20 projects in Q1, with apartments making up 80 percent of supply. This compares to 3,400 units launched in the previous quarter.
Key project launches included Tara Park on Al Reem Island, while completions included Fay Al Reeman Phase 2 and The Gate Residence in Masdar City.
While short-term activity may remain under pressure due to external factors, Abu Dhabi’s long-term outlook remains positive. Growth is expected to be supported by major developments, including expansion at ADGM, new attractions on Saadiyat Island and the planned Disneyland Abu Dhabi, which are likely to drive demand in the coming years.
tanvir@dubainewsweek.com
