MAYS IBRAHIM (ABU DHABI)
Abu Dhabi’s residential property market continued to expand in the first quarter of 2026, with apartment prices surging 36% year-on-year, according to new market research by Reliant Surveyors, a real estate advisory firm.
The report paints a picture of a maturing market that remains buoyed by investor confidence, steady end-user demand, and a carefully managed supply pipeline.
Apartment sale prices climbed to Dh1,665 per square foot in Q1 2026, marking a 5.1% increase from the previous quarter, its findings show.
Rental rates also strengthened, reaching Dh106.4 per square foot per month, up 16% annually and 2.1% from the previous quarter.
“Pricing movement is consistent with elevated transaction activity and ongoing absorption across investor and end-user demand pools,” the report said.
Over the past two years, apartment sale prices have risen 53%, while rental values increased 49%, indicating closely aligned growth between capital values and leasing performance.
In contrast, Abu Dhabi’s villa market showed signs of stabilisation after several years of rapid growth. Villa sales prices edged down 0.7% quarter-on-quarter to Dh1,189 per square foot in Q1 2026, although they remained 10.3% higher than the same period last year.
Villa rental values also softened slightly, declining 2.1% from the previous quarter to Dh55.4 per square foot per month, but were still up 8% year-on-year.
“Abu Dhabi’s villa market is entering a more balanced phase, where short-term price moderation reflects stabilisation rather than weakening demand,” said Vivek Sethi, Senior Partner, Partner & Group Head Valuation & Strategic Consultancy. “Continued annual growth, supported by end-user activity and limited supply, reinforces the sector’s long-term resilience and maturity.”
The report also showed rental yields easing as capital values continue to rise. Apartment rental yields declined to 6.58% in March 2026 from a peak of 7.15% in September 2025, while villa yields stood at 4.76%, broadly stable compared with last year.
The report said that this trend pointed to “yield normalisation”, with apartment returns compressing as property prices outpaced rental growth. The emirate’s residential stock is projected to reach about 111,300 completed units in 2026, up from 95,200 units in 2025, with another 16,000 homes currently under construction.
A total of 1,780 residential units were delivered during Q1 2026, supporting what the consultancy described as a “controlled” pace of supply growth aligned with medium-term demand.
Apartments continue to dominate Abu Dhabi’s housing market, accounting for 72% of completed stock, or about 70,283 units, while villas make up 28%, equivalent to 27,746 units.
However, the future development pipeline points to stronger villa growth. Apartments represent 60% of upcoming supply, or around 21,500 units, while villas account for 40%, reflecting continued demand for larger family homes.