Abu Dhabi’s residential property market showed no signs of cooling in first quarter
While the residential property markets of Dubai and Qatar have been affected by regional uncertainty, Abu Dhabi’s market so far appears to be bucking the trend. Despite some more caution among private buyers and investors, prices continued to rise in the first quarter of the year.
In the first quarter of 2026, the capital value of Abu Dhabi’s residential property market grew by 6.4% quarter-on-quarter. As a result, the ValuStrat Price Index (VPI) – an index developed by ValuStrat that tracks changes in property values over time – rose to 148 points, a record high.
Apartments led the capital growth cycle in Q1, with values increasing significantly by 10.4% quarter-on-quarter and 22.7% year-on-year. Villa prices recorded more moderate but steady gains of 2.7% quarterly and 13.4% annually.
In the apartment segment, Al Reef led annual capital growth with a 36.6% increase, followed by Al Muneera at 22.9% and Al Bandar at 22.8%. In the villa segment, Al Reef also topped performance with a 26.9% annual increase, followed by Saadiyat Island at 15.3% and Al Raha at 5.8%. Areas such as Mohammed Bin Zayed City and Hydra Village recorded more modest growth of around 5%.
ValuStrat noted that supply conditions in the UAE’s capital city remained supportive of pricing, with overall delivery levels relatively controlled across the emirate. Just over 2,000 apartments and close to 400 villas were completed during the first quarter of 2026, representing only around 13% of the expected residential pipeline for the year.
The analysis also highlighted strong activity in the off-plan market. Abu Dhabi booked a record 6,416 off-plan transactions in Q1, accounting for 80% of total sales and marking a 21% quarterly increase. Average off-plan prices rose 22% quarter-on-quarter to Dh2,191 per square foot, while the average ticket size climbed to Dh5.2 million.
Ready home transactions, however, declined 16.3% quarterly, partly due to seasonal factors including Ramadan and Eid holidays, although average ready home prices increased 25% annually.
No signs of cooling so far
Haider Tuaima, Managing Director and Head of Real Estate Research at ValuStrat, said: “Abu Dhabi’s residential market maintained its upward trajectory, with capital values accelerating from the previous quarter.”
He noted that underlying data shows no clear evidence that regional geopolitical tensions linked to the Iran conflict have materially affected Abu Dhabi’s property market.
There is, however, one important factor to keep in mind. While Abu Dhabi and Dubai do not always move in parallel, they tend to follow similar broader trends over time. In Dubai, ValuStrat’s data shows that capital values declined in both March and April.
Historically, Abu Dhabi’s market operates with a delayed impact cycle, “reflecting its later position in the property cycle relative to Dubai and its comparatively more accessible price points that continue to support strong end-user demand,” said Tuaima.
“As such, any sustained shift in market conditions may take time to filter through, and we will be closely monitoring second-quarter performance.”
