Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Residential sales prices in Abu Dhabi recorded double-digit annual increases in the second quarter of 2026, demonstrating resilience despite uncertainty arising from the regional situation, according to a JLL report on the UAE’s property market.
Apartment sales prices rose 19.4% year on year, while townhouse prices increased 11.2%. On a quarterly basis, townhouses delivered the strongest performance, with prices rising about 6%.
Total residential sales transactions also maintained a positive year-on-year trajectory, driven predominantly by robust activity in the off-plan market. The secondary market, however, recorded an 18.1% decline in transactions.
Off-plan sales contracted by a relatively modest 5.6% compared with the first quarter, indicating some moderation in market momentum. Apartment and villa prices declined by 7.8% and 5.1%, respectively, on a quarterly basis.
Mouhammad Takieddin, JLL’s Regional Head and CEO of Middle East and Africa, said: “The UAE's residential sector is demonstrating a clear and mature shift, moving from a phase of accelerated growth to a greater focus on stability and long-term value. This evolution aligns with the nation’s broader economic vision and is strongly supported by targeted interventions aimed at enhancing stability and reinforcing confidence amid regional uncertainty.
“For savvy investors and occupiers, this evolving landscape creates distinct opportunities. Combined with the UAE's strong economic fundamentals, the market remains robust and well-positioned for continued growth.”
Abu Dhabi’s rental market also recorded positive indicators. New rental registrations increased by 6.5% annually in the second quarter and by 9.9% in the first half of 2026 compared with the corresponding period last year.
Annual rental growth ranged from 7.6% to 26.3% across property categories, led by townhouses, which registered the strongest increases.
Overall rental registrations declined by 6.1% in the second quarter, mainly because renewals fell 13% year on year. New contracts also decreased by 3.5% from the first quarter as regional uncertainty affected tenants’ decision-making.
On the supply side, close to 3,000 homes were delivered in Abu Dhabi during the quarter, raising the emirate’s residential inventory to approximately 299,800 units. A further 11,700 units are expected to be completed during the remainder of 2026.
Government intervention accelerated during the quarter, with Abu Dhabi announcing a freeze on rental increases in June. The measure prohibits increases for renewed leases and new leases involving previously rented properties, excluding those within ADGM jurisdiction.
JLL said the intervention came at a critical time and would help ease affordability pressures, support occupier retention and reinforce confidence in the residential market. The freeze is expected to place downward pressure on rental rates.
The second quarter also saw several UAE banks begin offering early-stage mortgage financing to off-plan buyers. Under these arrangements, buyers may receive pre-approval once a project reaches about 30% to 40% completion and they have paid approximately 50% of the purchase price, rather than having to wait until handover.
Although the facility remains limited to selected banks and developers, JLL said it could make transaction activity more predictable and broaden the pool of buyers able to obtain financing in the off-plan segment.
As the supply pipeline expands and demand cools, developers are exercising greater caution over new launches and focusing more closely on completing existing projects while maintaining promised quality standards, according to the report. Developers are also increasingly pursuing partnerships with prominent international brands to differentiate their projects and attract investors in a more competitive market.
