BATOOL GHAITH (ABU DHABI)
Abu Dhabi’s residential property market recorded its strongest first quarter on record in 2026, with sales reaching Dh38.1 billion, according to Cavendish Maxwell’s latest analysis of the UAE capital’s residential property market.
The sales were made across approximately 8,100 transactions, as demand for off-plan properties continued to drive growth, according to the data.
Transaction values surged 211.5% year-on-year during the first quarter, the data revealed, while sales volumes climbed 123.6% compared to the same period in 2025. The performance marks the highest quarterly residential sales value ever recorded in the emirate.
The record-breaking quarter comes after Abu Dhabi’s residential market delivered a standout performance in 2025 and reflects continued investor appetite for new developments, particularly in the off-plan segment, which accounted for nearly 90% of total sales value and more than four-fifths of all residential transactions, according to the report.
“After a record-breaking annual performance in 2025, Abu Dhabi’s residential market opened 2026 with equal momentum, with the best Q1 performance for both transaction volumes and values since records began,” said Andrew Laver, Head of Abu Dhabi at Cavendish Maxwell.
He indicated that it is too early to fully assess the impact of recent geopolitical developments on market sentiment.
“It is important to remember that it takes several weeks for sales data to be reflected in official figures. Q1 statistics indicate sustained strong market fundamentals, but the coming quarters will be crucial in assessing any impact of geopolitical developments on real estate demand,” Laver said.
The report noted that March figures reflected transactions agreed both before and during the period of heightened regional tensions, meaning future data will provide a clearer indication of how buyers and investors respond to evolving market conditions.
Off-plan sales remained the market’s main growth engine, rising 184.4% year-on-year to around 6,600 transactions. The segment generated Dh34 billion in sales value during the quarter, accounting for 89.3% of total residential sales.
March alone recorded approximately 2,100 off-plan sales, representing a 208% increase compared to the same month last year, despite coinciding with Ramadan and Eid periods that traditionally see slower market activity, the report said.
The ready property market also expanded, although at a more moderate pace, with transactions rising 14.8% year-on-year to around 1,500 sales.
Apartments continued to dominate residential activity, accounting for more than 70% of all transactions. Around 5,700 apartments changed hands during the quarter, a 130% increase compared to Q1 2025, supported largely by new off-plan launches and relatively accessible entry prices.
Villa and townhouse sales also remained strong, reaching approximately 2,400 transactions, more than double the level recorded a year earlier.
Al Reem Island remained Abu Dhabi’s most active apartment sales destination, recording almost 2,000 transactions during the quarter, followed by Yas Island with 1,545 sales and Saadiyat Island with 720, the data revealed.
In the villa and townhouse segment, Al Hudayriyat Island dominated activity with 1,067 transactions, accounting for nearly half of all sales in that category and significantly outperforming all other locations.
The strong sales momentum translated into substantial price growth across the emirate, the report said. Apartment prices increased by an average of 17.1% year-on-year, with Yas Island recording the strongest growth at nearly 20%, closely followed by Al Reem Island at 19.1%.
Villa prices rose by 10.9% on average, with Yas Island again leading the market with growth of more than 15%, while Saadiyat Island recorded a 12.2% increase.
Rental values also continued their upward trajectory. Apartment rents increased by an average of 10.5% compared to a year earlier, with Yas Island posting the strongest growth at almost 20%.
The report suggests that demand has so far kept pace with new supply entering the market. Around 2,400 residential units were completed during the first quarter, bringing Abu Dhabi’s total housing stock to approximately 320,300 homes. A further 13,500 units are expected to be delivered by the end of 2026, with another 16,700 scheduled for 2027 and nearly 25,000 planned for 2028.