Abu Dhabi apartment prices increased by 24% in a year, with Al Reef recording the strongest growth as residential values continued to climb in Q3 2026.
Abu Dhabi property prices gain momentum
Residential property prices in Abu Dhabi rose at a faster pace in the third quarter of 2026, with apartment values leading the market, according to ValuStrat’s latest quarterly review.
The ValuStrat Price Index (VPI) for freehold residential properties increased by 3.1% quarter-on-quarter to 155.8 points, compared with 2.1% growth in the second quarter. Annual price growth reached 16.8%.
Apartments recorded annual price growth of 24%, significantly ahead of villas, which increased by 10.2%.
Al Reef records highest apartment price growth
Al Reef was the strongest-performing residential location, recording annual price growth of 36.6%.
Other communities also reported substantial increases:
Al Bandar: 24.7%
Al Muneera Island: 24.4%
Al Reem Island: 22.1%
The figures highlight the strength of Abu Dhabi’s apartment market, particularly in established residential communities.
Haider Tuaima, Managing Director and Head of Real Estate Research at ValuStrat, said: “The acceleration from 2.1% in the second quarter to 3.1% indicates a strengthening pace of appreciation and continued market resilience.
Apartments remain the principal driver of growth. The performance gap with villas suggests stronger demand for apartments, potentially reflecting their relative affordability and the appeal of ready-to-occupy homes in established communities.”
Abu Dhabi office rents increase by 30.4%
The commercial property market also recorded strong performance, supported by business activity and limited availability of high-quality office space.
Office asking rents in Abu Dhabi’s primary commercial districts increased by 30.4% year-on-year. Occupancy across central business districts reached 90.8%.
The industrial property market showed a mixed performance. Upper-end asking rents increased by an average of 7.4% over the year, while lower-end rents declined by 10.7%.
Etihad Rail expected to support industrial demand
Demand for modern industrial facilities is also shaping the market, with businesses increasingly seeking properties that meet specific operational requirements.
Sean Swinburne, MRICS, Director – Valuations at ValuStrat, said: “Industrial rental performance shows increasing divergence between modern and older assets. Occupiers have highly specific requirements, and pre-leasing and build-to-suit activity mean new facilities are being rapidly occupied upon completion. As the Etihad Rail freight network is expected to improve connectivity between Khalifa Port and wider GCC markets, we expect demand to congregate around new transport nodes.”
