Residential real estate in the UAE capital continues to appreciate: in Q2 2026, prices rose 17.8% year-on-year, with apartments up 24.1%. The ValuStrat index reached 151.1 points, up 2.1% quarter-on-quarter, but growth slowed to the lowest in two years.
According to analysts, Abu Dhabi is at an earlier stage of the market cycle than Dubai, where prices are approaching peak levels, and affordable prices in the capital continue to attract buyers.
The escalation of the Middle East conflict in early 2026 caused turbulence in UAE markets, especially Dubai. However, Abu Dhabi showed greater resilience due to a high share of local demand – moreover, in the first half of March, the number of transactions in the capital more than doubled as investors shifted to the more stable market.
Al Reef led price growth, with apartments up 41.6% and villas up 27.9% year-on-year. Significant growth was also seen in Al Muneera Island (+24.7%), Al Reem Island (+22%), and Al Bandar (+21.8%). The rental market is putting more pressure on tenants: the average annual rate reached AED 163,700, with studios up 13.8% and one-bedroom apartments up 7.7%, indicating strong demand from young professionals and expats.
The market is dominated by off-plan transactions: 6,061 deals in the quarter, up 156% year-on-year, accounting for 84% of all sales. The average value of such deals reached AED 4.4 million (+25.9% year-on-year). Meanwhile, sales of ready properties fell 28.3% (to 1,145 deals), although prices for them rose 10.9% – indicating a shift in demand to more favorable early-stage construction terms amid limited supply of ready units.
The office market shows even more dynamic activity: rents rose 27.3% year-on-year, and occupancy in the central business district reached 90%.