Abu Dhabi apartment prices surge 24% in third quarter of 2026

Apartment and villa prices in Abu Dhabi rose during the third quarter of 2026, driven by sustained economic activity in the UAE capital, according to a new report by ValuStrat.

Price increases by area

Apartment prices for the three months to the end of September increased by 24 percent year-on-year, while villa prices climbed 10.2 percent, the property consultancy found.

Al Reef outperformed other areas in Abu Dhabi, recording a 36.6 percent rise in apartment prices and a 26.8 percent increase in villa values.

Apartments in Al Bandar rose 24.7 percent, on Al Muneera Island by 24.4 percent and on Al Reem Island by 22 percent.

In the villa sector, Al Reef was followed by Saadiyat Island with 9.9 percent price growth and Hydra Village at 2.9 percent.

Overall residential values and market commentary

Overall, residential values in Abu Dhabi rose 16.8 percent on an annual basis during the quarter.

“Abu Dhabi’s real estate market strengthened in third quarter of 2026, with accelerating residential capital growth and resilient commercial property fundamentals reinforcing the emirate’s positive market trajectory,” said Haider Tuaima, managing director and head of real estate research at ValuStrat.

“Residential appreciation gained pace, led by apartments, while sustained business activity and limited availability of quality office space continued to support commercial performance.”

Freehold homes in Abu Dhabi’s secondary market also recorded average annual capital gains of 16.8 percent.

Economic momentum and business activity

Economic momentum in Abu Dhabi continued despite uncertainty driven by the Iran war, with new economic licences increasing by 21 percent year-on-year in the first quarter of 2026. Assets under management at Abu Dhabi Global Market (ADGM) rose by 54 percent in the first half of 2026, reflecting continued growth in business activity and investment.

About 50,000 professionals are now based in ADGM, an increase of 34 percent compared with the first half of the previous year.

Apartment rents rose 1.5 percent annually in the third quarter, with the average at Dh121,500 per year, while villa rents increased by 1.8 percent at an average of Dh258,000, ValuStrat said.

Rents remained stable on a quarterly basis, with Abu Dhabi introducing a temporary rent freeze across residential, commercial and industrial properties from 2 June, replacing the 5 percent cap on annual increases until further notice.

About 13,534 new homes are expected to enter the Abu Dhabi market this year, with 3,508 completed in the first nine months of 2026. A further 40,510 homes are scheduled for delivery by 2030.

Transaction volumes and market slowdown

The new data comes even as UAE property market activity shows signs of slowing amid the geopolitical uncertainty. Abu Dhabi’s residential property market was mixed in the third quarter, with transaction volumes falling 7 percent annually to 6,085, while values rose 32 percent to Dh21.5 billion, a Savills report found.

In Dubai, the volume and value of residential property transactions fell in the third quarter as buyers became “more cautious” amid regional events, Cavendish Maxwell said.