MAYS IBRAHIM (ABU DHABI)
Abu Dhabi’s property market showed continued buyer confidence in the third quarter of 2026, with 46% of buyers expecting prices to rise over the next 12 months, according to a survey by Bayut and dubizzle.
Mid-tier apartments in Baniyas recorded the largest increase, with average advertised prices per square foot rising 9.2%, followed by affordable apartments in Al Ghadeer, where prices increased 6.2%, Bayut said in its latest market analysis.
Asking prices for apartments in Al Ghadeer, Al Shamkha, Masdar City and Baniyas rose between 3% and 9.2% during the quarter. Prices on Al Maryah Island also increased, with average asking prices per square foot up 3.2%.
Al Reem Island attracted the most search interest among buyers looking for mid-tier apartments, while Al Ghadeer was the leading choice in the affordable segment. Masdar City and Baniyas also drew interest from mid-tier buyers.
The findings point to continued demand for properties across different price brackets, although prices remained largely stable in many established residential communities.
Bayut's analysis also found that 79% of sellers were pricing their properties at or below market value, while 69% were willing to negotiate, suggesting a more measured resale market.
A separate market sentiment survey by Bayut and dubizzle found that 46% of buyers expected property prices to rise over the next 12 months. Meanwhile, 60% of surveyed buyers described themselves as highly confident or cautiously optimistic about the market over the next five years.
In the luxury segment, Yas Island and Al Raha Beach were the preferred locations for apartment buyers, while Saadiyat Island and The Marina attracted the most interest from ultra-high-net-worth individuals seeking ultra-luxury properties.
Nurai Island and Saadiyat Island were the leading choices for ultra-luxury villas, while Yas Island and Al Raha Beach remained popular for luxury villas.
Among affordable apartments, Al Ghadeer, Al Reef and Al Shamkha attracted buyer interest. Al Raha Gardens and Zayed City were popular for mid-tier villas, while Al Shamkha and Al Reef led searches for budget-friendly villas.
Rental Yields
Bayut's analysis identified Al Reef as a leading location for investors seeking rental returns from affordable apartments, with a projected yield of 7.9%. Al Samha recorded a projected yield of 7.1% for mid-tier apartments, while luxury apartments on Al Maryah Island offered a projected return of 7%.
The Marina recorded a projected yield of 5% for ultra-luxury apartments.
For villas, Al Raha Beach offered a projected yield of 5.2% in the luxury segment, while Saadiyat Island recorded 4.3% for ultra-luxury properties. Among affordable homes, the projected yield reached 10.1% in Between Two Bridges, also known as Bain Al Jessrain, and 11.5% for villas in Al Dhafrah.
The figures represent projected returns rather than guaranteed rental income.
Rental Market
Rents in most popular Abu Dhabi neighbourhoods remained broadly stable or recorded only modest changes during the third quarter, Bayut said.
The survey found that half of respondents expected rents to remain stable over the coming months, while 25% anticipated an increase. Separately, 47% of surveyed buyers said they planned to move within a month.
Al Raha Beach and Saadiyat Island were the preferred locations for luxury and ultra-luxury apartment rentals, while Yas Island and Saadiyat Island led searches for villa rentals.
Khalifa City and Al Reem Island were popular for affordable and mid-tier apartment rentals. Zayed City and Khalifa City attracted the most search interest for affordable and mid-tier villas, respectively.
Off-plan developments also featured prominently in buyer searches. Al Reeman 1 and Reeman Garden 1 were popular in the affordable apartment segment, while Shams Abu Dhabi led interest in mid-tier off-plan apartments. Gardenia Bay and Saadiyat Cultural District were the leading choices for luxury and ultra-luxury off-plan apartments, respectively.
For off-plan villas, buyers favoured Al Reeman 2 in the affordable segment and Bloom Living in the mid-tier category. Yas Park Gate and Saadiyat Lagoons attracted interest from luxury and ultra-luxury buyers.