SADEQ ALKHOORI (ABU DHABI)

Abu Dhabi’s property market is entering a new phase, as record transaction values, rising foreign investment and a heavy off-plan pipeline begin to reshape how buyers, developers and brokers read the capital.

The shift was underlined in Abu Dhabi Real Estate Centre’s H1 2026 data, which showed total real estate transactions reaching Dh117 billion in the first half of the year, up 112% year-on-year. Foreign direct investment rose 309% to Dh13.8 billion, while non-resident investors came from 116 nationalities, compared with 82 a year earlier.

ADREC’s H1 2026 Real Estate Market Report also showed strong residential sales activity, with off-plan transactions accounting for 89% of sales value and 82% of deals. Around 71,000 additional units are projected across the emirate by 2030, with deliveries expected to peak at about 21,800 units in 2028.

Ben Crompton, Managing Partner of Crompton Partners, said the figures point to a market that has accelerated, but one where the headline growth needs to be read carefully.

“The market is not just doing more deals, it is doing larger ones,” he told Aletihad.

He said the direction is upward, but activity is concentrated heavily in Abu Dhabi’s investment zones, with a small number of districts accounting for much of future residential supply and sales value.

“A market can post a headline like Dh117 billion and still be a narrow market underneath,” he said.

Crompton said stronger interest is being driven by foreign capital, relative value compared with Dubai, and rising confidence in the regulatory framework.

“For overseas investors, a market becoming more transparent is worth more than a market becoming cheap,” he said.

For developers, the strength of off-plan demand is being read as a sign of confidence in Abu Dhabi’s long-term fundamentals.

Naresh Perwani, Founder and Chairman of Neoterra Developments, said buyers are increasingly comfortable committing earlier because they see Abu Dhabi as stable, well-regulated and supported by investment in infrastructure, tourism, business and lifestyle.

“The strength of Abu Dhabi’s off-plan market reflects a high level of confidence in the emirate’s long-term growth story,” he told Aletihad.

He said international buyers are no longer focused on one factor, but are assessing location, lifestyle, payment flexibility, rental potential and long-term capital appreciation together.

“It is increasingly about the complete value proposition rather than one individual factor,” he said.

Perwani said investment zones have broadened Abu Dhabi’s appeal by opening key areas to international ownership, pushing developers to design projects for more global expectations.

Luxury Buyers Look Long Term
At the higher end of the market, buyer demand is being shaped by both long-term residents and new international arrivals.

Felicia Agmyren, Founder and Managing Partner of REX Real Estate, said the luxury market is seeing strength from residents converting from renting to owning, as well as new residents, including European buyers, purchasing within months of arriving.

She said REX Real Estate is seeing a noticeable rise in Swiss and French buyers, alongside British, German, and other European nationalities.

“For both groups, this isn’t opportunistic buying, but a real conviction,” she told Aletihad.

Agmyren said luxury buyers are asking most about location and long-term value, followed by waterfront access, privacy and lifestyle.

Saadiyat Island remains Abu Dhabi’s most premium address, she said, while Yas Island has become a more established residential destination, supported by entertainment, hospitality and new launches. Al Reem Island and Al Maryah Island continue to attract buyers focused on yield and connectivity to the business district, while Al Jubail Island and Hudayriyat are also drawing attention.

The 2028 Test
The next test for the market may come as supply begins to arrive at scale.

Crompton said the expected pipeline could shift the market from scarcity to selection, especially around 2028 when deliveries are projected to peak.

“When completions arrive at scale, buyers gain choice, and choice is what separates well-located, well-built stock from the rest,” he said.

He said buyers committing today for handover around 2028 should look beyond the wider growth story and assess the specific unit, location and quality of the project.

“For anyone buying now for handover around 2028, the question to answer is not whether Abu Dhabi grows. It is whether that particular unit stands up in a year when 21,800 others are competing with it.”