MAYS IBRAHIM (ABU DHABI)

Abu Dhabi developers are putting more homes on the market at relatively more accessible price points, with residential launches nearly doubling in the first half of 2026 as demand shifts towards end-users.

A total of 13,073 units were launched across 43 projects in H1 2026, up from 7,019 units across 29 projects in H1 2025, according to latest Cushman and Wakefield Core report.

Government-backed developers Aldar and Modon led launch activity, with developers increasingly targeting mid-market and end-user demand.

Off-plan sales remained a major driver, reaching roughly five times secondary-market volumes in H1 2026 – a gap that has widened since mid-2025.

Average residential sales prices reached Dh16,368 per square metre in Q2, up 22% year on year but down 1% from the previous quarter. The quarterly decline was the first since late 2021.

Average rents reached Dh945 per square metre per year, rising 4% year on year but falling 5% quarter on quarter.

Cushman and Wakefield Core described the moderation as a natural cooling of the residential market rather than a correction, as increased supply gives buyers and tenants more choice.

“Abu Dhabi's growth has largely leaned on its government-backed developers, and rather than pulling back amid regional uncertainty, they repositioned toward end-user demand and mid-prime product,” said Prathyusha Gurrapu, Head of Research at Cushman and Wakefield Core.

“That resilience is now showing up as differentiation rather than uniform growth, with sales prices and rents easing modestly even as launch volumes and off-plan activity remain strong.”

The office market presented a different picture, with limited supply driving rents higher.

City-wide office rents rose 15% quarter on quarter and 32% year on year to Dh2,182 per square metre per year in Q2.

Prime and Grade A occupancy stood at around 99%, compared with 93% across the city.

No new office space was completed in Q2, following 48,000 square metres delivered in Q1, mainly at Masdar City Square. A further 47,000 square metres is expected by the end of 2026, although much of that space has already been pre-leased.

The supply pipeline remains limited, with around 35,000 square metres expected in 2027 and 82,000 square metres in 2028, before deliveries rise to about 174,000 square metres in 2029.

Banking and finance accounted for 20% of office enquiries in H1 2026, driven by continued expansion within Abu Dhabi Global Market.

Public sector, business services, and oil and gas companies also remained major sources of demand, while technology and defence are gaining traction.

Demand was concentrated in units of 200 to 600 square metres, with ADGM and Al Reem Island the preferred locations.

Prime rents in ADGM have surpassed Dh6,000 per square metre. The district is outside the emirate’s rental cap, widening the pricing gap with Grade A and Grade B offices and prompting some occupiers to consider alternatives on Al Reem Island.

Cushman and Wakefield Core expects residential prices and rents to see further measured softening in H2 2026 as new supply broadens buyer and tenant choice.

The office market, meanwhile, is expected to remain favourable to landlords, with meaningful supply relief unlikely before 2028-29.