A. SREENIVASA REDDY (ABU DHABI)
Abu Dhabi’s residential real estate market recorded its highest first-half sales volume with 15,500 transactions recorded in H1 2026, more than double the level in the same period last year, according to the Cavendish Maxwell report on Abu Dhabi residential market.
Residential sales transactions increased 103.6% year-on-year and were also 4.3% higher than in the second half of 2025, according to the data in the report.
Total sales value climbed 177.9% year-on-year to Dh67.8 billion and was 38.9% higher than in H2 2025. Off-plan sales accounted for Dh60.3 billion, up 249.9% year-on-year, while ready-property sales value increased 4.6% to Dh7.5 billion.
Off-plan activity accounted for 12,800 transactions, up 173.5% year-on-year and representing 82.7% of all residential sales. Ready transactions, by contrast, declined 8.5% to 2,700, reducing their share of total sales to 17.3% from 38.4% in H1 2025.
According to the report’s H1 market snapshot, Abu Dhabi recorded 3,275 transactions in April, 2,010 in May and 2,079 in June. The respective year-on-year increases were 191.9%, 46.7% and 38.5%.
The value of residential transactions in Q2 stood at Dh29.7 billion, down 22.1% from the first quarter but still 143.9% above the year-earlier period. Off-plan sales accounted for Dh26.3 billion, while ready-property sales were valued at Dh3.4 billion.
Apartments continued to dominate activity, accounting for 73.7% of all transactions. Apartment sales rose 119.1% year-on-year to 11,400, including 9,500 off-plan deals. Ready apartment transactions fell 5.5% to 1,900.
Villa and townhouse transactions increased 70% year-on-year to 4,100, of which 3,300 were off-plan. Ready villa and townhouse sales declined 15.2% to 800. Activity in this segment also softened in the second quarter, falling 28.4% quarter-on-quarter to 1,700 transactions.
Apartment sales were concentrated in a relatively small number of districts, led by Reem Island with 4,471 transactions and Yas Island with 2,807. Together, the two accounted for 63.8% of apartment sales.
Saadiyat Island followed with 1,207 transactions, while Hudayriyat Island and Khalifa City recorded 611 and 503, respectively. Villa and townhouse activity was led by Hudayriyat Island with 1,574 transactions, representing about 38.7% of the segment total. Zayed City followed with 446 transactions, Al Shamkha with 248, Yas Island with 231 and Ramhan Island with 193.
Residential prices also continued to rise during the first half. Apartment prices increased 16.4% year-on-year, with all major districts recording double-digit growth.
Yas Island posted the strongest increase at 18.3%, followed by Reem Island at 17.3%, Al Raha Beach at 17.2% and Al Reef at 14.7%. Villa prices increased by 10.1%, led by Yas Island at 14.2% and Saadiyat Island at 10.7%.
Apartment rents rose 9.4% year-on-year, led by a 17.9% increase on Yas Island, 13.1% on Reem Island and 12.1% in Al Reef. Al Raha Beach recorded an 8.5% increase.
Cavendish Maxwell said the temporary rental freeze introduced by the Abu Dhabi Real Estate Centre could help limit further rental increases in the near term and provide some relief to tenants. Villa rents rose by a more moderate 3.8%.
Abu Dhabi’s residential stock stood at approximately 323,600 units at the end of H1, following the completion of about 5,700 units during the period.
Another 10,500 units are scheduled for delivery by the end of 2026. The pipeline includes about 17,300 units in 2027 and 26,000 in 2028, taking projected stock to nearly 372,000 units by the end of 2028.
Looking ahead, Cavendish Maxwell said off-plan activity is expected to remain the main driver of sales, although the moderation in second-quarter transactions and the volume of future supply point to a more measured outlook.
“Despite heightened regional geopolitical uncertainty, prices continued to rise, although the moderation in quarterly transaction activity and the greater concentration of sales in the off-plan segment point to a more nuanced market outlook,” the report observed.
“Residential prices in Abu Dhabi have shown notable resilience against a backdrop of heightened regional geopolitical uncertainty, with every major district recording year-on-year growth. That said, quarterly growth is already beginning to ease, which is a signal worth watching,” said Andrew Laver, Director, Commercial Valuation (Abu Dhabi) at Cavendish Maxwell.
The real estate consultancy said the third quarter should provide greater clarity on whether the recent slowdown in transaction activity is temporary.
Meanwhile, another report by Colliers on second-quarter performance flagged several softer numbers for Abu Dhabi’s residential market, pointing to signs of normalisation following an extended period of strong growth.
Average apartment sale prices declined 3% quarter-on-quarter during Q2 2026, while villa prices softened by 1%, Colliers said in its UAE Real Estate Market Report. Despite the quarterly decline, apartment prices remained 19% higher year-on-year and villa prices were up 10%.
Residential transaction volumes fell 8% from the previous quarter to approximately 7,200 deals, although they remained 83% higher than in Q2 2025.
The rental market also entered a softer phase after strong growth through 2025 and early 2026. Average apartment rents declined 2% quarter-on-quarter, while villa rents fell 3%.
On an annual basis, however, apartment rents were still 7% higher than in Q2 2025 and villa rents were up 5%. Lease renewals accounted for most leasing activity during the quarter, reflecting lower tenant mobility.
The office market remained comparatively strong, supported by demand from companies seeking space in Abu Dhabi Global Market on Al Maryah Island. Colliers said ADGM was operating at full occupancy and had an active waiting list for Grade A office space.