A. SREENIVASA REDDY (ABU DHABI)
Branded and lifestyle-led schemes are expected to remain a dominant feature of new project launches in Abu Dhabi in 2026, continuing the trend set in 2025, according to the Colliers UAE Real Estate Report.
“A defining feature of 2025 was the unprecedented volume of new project launches, many of which were branded and lifestyle-led developments, representing the highest concentration of branded projects recorded to date,” the report observed.
Many of the projects reached sell-out status shortly after release, underscoring sustained end-user and investor demand for premium, well-positioned product, the report said.
The report said supply momentum is expected to remain positive this year, with approximately 7,000 residential units scheduled for completion, anchored by major master-planned communities and government-linked developments. A growing number of projects are progressing into active construction and phased handover stages, while previously deferred schemes are also expected to support delivery volumes.
Rental performance is forecast to remain resilient in 2026, although growth is likely to become increasingly selective and quality driven as new supply enters the market. Prime and well-managed residential developments are expected to remain comparatively insulated, while older or lower-quality stock may face competitive pressure.
On the sales side, prices in 2026 are expected to maintain a steady upward trajectory, underpinned by strong end-user demand, sustained investor interest and a deepening development pipeline. Off-plan sales are anticipated to continue dominating activity, driven by high-quality launches and competitive pricing structures.
Pricing performance is expected to become more differentiated as new inventory enters the market, with premium, branded and master-planned schemes continuing to outperform, while older or lower-specification stock may face greater pricing pressure.
In the office segment, demand for Grade A space is expected to remain strong in the short to medium term, supported by business formation, corporate expansion and inward investment. Premium rents are expected to remain supported even as supply constraints gradually ease.
Additional Grade A office stock, including The Link and Masdar City Square, offering a combined 80,000sqm of space, is scheduled for completion, reinforcing Abu Dhabi’s role as a regional business hub.
“Abu Dhabi is expected to retain strong momentum, underpinned by structural demand drivers, a deepening end-user base and continued confidence in new development activity,” Randy Fink, Chief Executive Officer – MENA, Colliers, said.
Looking back at 2025, the report described it as a defining year for Abu Dhabi’s residential market, which delivered its strongest performance on record. Total residential transactions exceeded 21,000 deals, with off-plan transactions accounting for 15,000, up 60% year-on-year, while ready sales reached nearly 6,000, up 28% year-on-year.
Residential supply was also highly active in 2025, with around 7,000 units added during the year, alongside record-breaking launch volumes. Rental growth was recorded across all residential segments, with prime and high-end apartments seeing increases of 10% to 25%, while mid-quality apartments rose by 7% to 35%.
Villa rents increased by 5% to 10% in mid-market locations and by 10% to 15% in prime communities.
In the office market, 2025 marked the strongest conditions in over a decade, with rising demand for Grade A and B+ space supporting rental growth and several premium assets approaching full occupancy. Prime office rents increased to Dh280 per square feet in 2025, while the Abu Dhabi average reached Dh141 per square feet, reflecting strong annual growth.