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Tag: Abu Dhabi property

  • UAE’s Top 10 Developers Sell Dh113.7 Billion in First Half of 2026

    UAE’s Top 10 Developers Sell Dh113.7 Billion in First Half of 2026

    The combined sales figures demonstrate the scale and momentum of the UAE’s property development sector, with the top three developers — Modon, Emaar and DAMAC — accounting for Dh61.4 billion alone during the six months to the end of June.

    Modon topped the ranking with Dh23 billion in Abu Dhabi property sales, supported by the launch of Hudayriyat Golf Estates and the sell-out of all units at Tara Park on Reem Island. The company’s total property sales across all markets reached Dh26 billion, 2.6 times the level recorded a year earlier, while group revenue climbed 40 percent year-on-year to Dh9.2 billion.

    Emaar followed with Dh22.4 billion in UAE sales, part of Dh26.6 billion in total property sales when international transactions are included. The developer’s revenue backlog from projects under development stood at approximately Dh164.9 billion at the end of June, up 13 percent from a year earlier.

    DAMAC ranked third with Dh16 billion in sales, placing the three developers well ahead of the rest of the market during the first half of 2026.

    Aldar recorded Dh9.5 billion in UAE development sales, part of Dh12.1 billion in total development sales across the group, ranking fourth among the country’s leading developers. International buyers and expatriate residents accounted for Dh7.6 billion, or 80 percent, of Aldar’s UAE sales during the period.

    Aldar’s development revenue backlog reached Dh71.6 billion at the end of June, including Dh59.9 billion from UAE projects, while net profit after tax rose 18 percent year-on-year to Dh4.9 billion.

    Binghatti ranked fifth with Dh7.6 billion in sales, narrowly ahead of Meraas at Dh7.5 billion and H&H at Dh7.4 billion.

    Ellington followed with Dh7 billion, while Omniyat recorded Dh6.7 billion and Beyond completed the top 10 with Dh6.6 billion, establishing the minimum threshold needed to rank among the UAE’s largest developers by sales volume during the first half of the year.

    The figures are based on announced first-half financial results, excluding international sales recorded by Modon and Emaar, together with the half-year ranking published by real estate data platform DXB Interact.

    The performance comes as Dubai completed 24,800 residential units during the first half of 2026, a 38 percent increase year-on-year, while transaction values across the emirate reached Dh221.4 billion. Meanwhile, Modon’s revenue backlog doubled year-on-year to a record Dh65.4 billion, positioning it as Abu Dhabi’s largest developer by sales value.

  • Abu Dhabi Sets September 16 Deadline for Occupancy Certificates

    Abu Dhabi Sets September 16 Deadline for Occupancy Certificates

    The Department of Municipalities and Transport has set a firm deadline requiring all property owners and real estate operators in Abu Dhabi to secure or renew building occupancy certificates by September 16, 2026, as part of the implementation of Administrative Decision No. 1 of 2024.

    Applications must be submitted through a classified engineering consultancy using the Municipal e-Permitting System. The directive aims to ensure buildings are structurally safe and suitable for use while supporting residents’ well-being and maintaining property quality and value.

    An occupancy certificate is an official municipal document confirming that a building is safe to use and complies with applicable technical and regulatory standards. Certificates may remain valid for up to five years, depending on the property type, and must be renewed before expiry.

    “Through this grace period, we are urging all relevant parties to coordinate with licensed engineering firms in the emirate as soon as possible to begin their applications,” said Abdulla Mohamed Alblooshi, Director General of the Urban Planning and Permits Centre.

    Owners and management companies that begin the formal application process before the deadline may receive an additional six months, or another period approved by the Urban Planning and Permits Centre, to complete the required technical and regulatory procedures.

    Enforcement and penalties

    Failure to comply could result in an administrative fine of up to Dh1 million, in addition to an order requiring all identified violations to be corrected. Units without a valid occupancy certificate will not be eligible for the registration of new residential tenancy contracts through Tawtheeq.

    Municipalities will conduct field inspections to identify buildings requiring certification, considering safety, the external condition of assets and issues that could affect residents or property security. Owners of non-compliant buildings will be notified, while authorities will monitor corrective action and impose penalties where required.

    Safety requirements

    Obtaining or renewing a certificate requires a building to undergo inspections and submit reports based on its type and use. Requirements include structural stability assessments, Civil Defence and fire safety clearances, gas system safety certificates, water and plumbing compliance, and verification of air-conditioning and ventilation systems.

    The Abu Dhabi Real Estate Centre will support implementation by comparing municipal records and contacting owners of properties that do not meet the requirements.

    Alblooshi added that the occupancy certificate framework was introduced two years ago to improve building safety and protect occupants, with applications processed through the Municipal e-Permitting System in an efficient and transparent manner.

    The department said it would launch awareness initiatives to explain the application and renewal procedures to owners, engineers, contractors and other stakeholders as the September deadline approaches.

    The move comes as Abu Dhabi property prices rose 17.8% year-on-year in the second quarter of 2026, reflecting sustained market momentum across the emirate’s residential sector.

  • Abu Dhabi Property Prices Rise 17.8% in Q2 2026

    Abu Dhabi Property Prices Rise 17.8% in Q2 2026

    The ValuStrat Price Index (VPI) for Abu Dhabi’s freehold residential market reached 151.1 points in Q2 2026, marking a 2.1 percent quarter-on-quarter increase and 17.8 percent annual growth, according to data released by ValuStrat on August 4, 2026.

    The slower quarterly pace signals a gradual moderation following an extended period of rapid appreciation, positioning the capital at an earlier stage in its property cycle compared to Dubai, with relatively more affordable price points continuing to support end-user demand.

    Apartments outpace villas with 24.1% annual growth

    Apartments delivered the strongest performance across Abu Dhabi’s residential market, with the apartment VPI rising 2.9 percent quarterly and 24.1 percent annually. Villa values increased 1.3 percent quarter-on-quarter and 12 percent year-on-year, reflecting strong domestic demand for strategically located communities offering ready homes at accessible price points.

    Al Reef led capital appreciation in the apartment segment with a 41.6 percent annual increase, followed by Al Muneera Island at 24.7 percent, Al Reem Island at 22 percent, and Al Bandar at 21.8 percent. Saadiyat Island posted an 18.3 percent annual gain.

    In the villa segment, Al Reef again topped performance with 27.9 percent annual growth, followed by Saadiyat Island at 12 percent and Al Raha at 4.6 percent.

    “Despite ongoing geopolitical uncertainty across the region, Abu Dhabi’s residential market has remained resilient, with no material evidence of weakening demand,” said Haider Tuaima, Managing Director & Head of Real Estate Research at ValuStrat.

    “While Abu Dhabi and Dubai do not move in perfect synchrony, they have historically followed similar long-term market cycles, with changes in sentiment typically reaching the capital after a delay.”

    Rental growth moderates as 0% cap takes effect

    The VPI for rental values grew 4.7 percent annually to reach 128.6 points, compared to a baseline of 100 points in Q1 2021, while remaining stable quarter-on-quarter. Villa rents rose 4.4 percent annually to 131.5 points, while apartment rents climbed 5 percent year-on-year to 126 points.

    Average annual residential asking rent in Abu Dhabi stood at AED163,700, with apartment asking rents in Abu Dhabi City averaging AED122,500 per annum and citywide villa asking rents averaging AED260,000 per year.

    On June 2, 2026, Abu Dhabi implemented a temporary 0 percent rent increase cap, replacing the previous 5 percent annual limit on residential, commercial and industrial properties until further notice.

    37,700 new homes scheduled through 2030

    Abu Dhabi completed 1,834 apartments and 1,620 villas during the first half of 2026, representing 18.8 percent of the expected residential pipeline for the full year. An estimated 37,700 new residential units are scheduled for delivery by 2030, with 18,339 homes projected to enter supply in 2026 alone—51 percent apartments and 49 percent villas and townhouses.

    Major project announcements during the quarter included Sobha Realty’s AED40 billion Sobha City in Al Bahia, spanning 38 million square feet with 4,000 apartments, 2,500 villas and 80 mansions, with first-phase completion targeted for Q4 2029. Object 1 launched A1LA Residence, a 171-unit development on Al Reem Island due for completion in Q4 2028, while Aldar unveiled Yas Point, a AED6 billion waterfront project on Yas Island comprising 1,600 branded residences, a five-star resort, and retail facilities across 600,000 square metres.

    Commercial and industrial sectors sustain momentum

    Beyond residential property, Abu Dhabi’s commercial and industrial markets continued to demonstrate resilience. The office market remained supported by sustained business activity and limited availability of high-quality space, allowing both capital values and rents to maintain their upward trajectory.

    The industrial sector performed strongly, underpinned by robust demand from logistics operators, manufacturing businesses and trade-related occupiers, reflecting Abu Dhabi’s ongoing investment in infrastructure, economic diversification and supply chain development.

    Ras Al Khaimah growth slows to 5.4%

    In a separate report, ValuStrat revealed that capital values in Ras Al Khaimah’s freehold residential market eased to 123.5 points in Q2 2026. While the index recorded a marginal quarterly decline, it remained 5.4 percent higher year-on-year, representing the slowest annual rate of growth in two years based on a Q1 2024 baseline of 100 points.

    Villa capital value growth moderated from 7.4 percent annually in Q1 2026 to 4.6 percent in Q2 2026, with the freehold villa index stable quarter-on-quarter at 124.1 points. Apartment values eased to 123.1 points, reflecting 5.8 percent annual growth alongside a 0.8 percent quarterly decline. Average gross rental yield for both apartments and villas in Ras Al Khaimah stood at 5.3 percent.

  • Modon H1 Net Profit Reaches Dh2.2 Billion After Property Sales Hit Dh26 Billion

    Modon H1 Net Profit Reaches Dh2.2 Billion After Property Sales Hit Dh26 Billion

    Abu Dhabi-based Modon Holding has cemented its position as the emirate’s largest developer by sales value after recording Dh26 billion in property transactions during the first half of 2026, with Abu Dhabi accounting for Dh23 billion of the total.

    The group posted net profit of Dh2.2 billion for the six-month period, while revenue climbed 40 percent year-on-year to Dh9.2 billion, marking a new half-year record. Strong demand for new residential developments drove the performance and significantly expanded the company’s future income pipeline.

    Revenue backlog doubled from the same period in 2025 to reach Dh65.4 billion and increased 42 percent from the end of 2025, with developments in the UAE and Egypt representing 95 percent of the total.

    An exceptional performance from real estate positioned Modon as the largest developer in Abu Dhabi in terms of sales value during H1. This included the UAE’s highest-ever single-project sales value for the launch of Hudayriyat Golf Estates, with Dh13 billion achieved within days.

    Abdulla Al Sahi, Group Managing Director of Modon Holding, attributed the results to robust real estate performance.

    Record-Breaking Launch at Hudayriyat Golf Estates

    The launch of Hudayriyat Golf Estates generated Dh13 billion in sales within days, representing the highest sales value ever recorded for a single residential project launch in the UAE, according to Modon.

    Tara Park on Reem Island sold out across two phases launched in March and April, while additional phases were released at Wadi Yemm in Egypt. Real estate sales increased 2.6 times compared to the first half of 2025, driven by developments across Abu Dhabi, Egypt and Spain.

    Real estate revenue rose 56 percent to Dh5.7 billion, making the segment Modon’s main earnings contributor. The group awarded Dh14.1 billion in construction and consultancy contracts during the period.

    Strong Financial Position and Diversified Income

    Adjusted EBITDA reached Dh3 billion for the half-year, while recurring revenue increased 22 percent to Dh3.5 billion and represented 38 percent of group revenue.

    Excluding one-off gains and dividend income recorded during the previous year, adjusted EBITDA increased 18 percent and net profit rose 23 percent.

    Revenue from events, catering and tourism climbed 25 percent to Dh2.8 billion, including a Dh1 billion contribution from Arena Group. Modon hosted 484 events that attracted more than 2.7 million visitors across venues in the UAE and UK, while its catering operations served 24.9 million meals, up 5 percent year-on-year.

    Asset and investment management revenue rose 13 percent to Dh361 million, supported by higher rental income and occupancy of 96 percent across owned properties.

    Revenue from owned and operated hotels increased 8 percent to Dh388 million. Modon said higher domestic and staycation demand helped offset softer international tourism during regional travel disruption in March and April.

    Liquidity and Balance Sheet Strength

    Modon held Dh8.6 billion in unrestricted cash and Dh1.5 billion in undrawn committed facilities at the end of June. Net debt stood at Dh912 million, with net debt to EBITDA at 0.18 times.

    Our Group revenue backlog of Dh65.4 billion, alongside additional income-generating assets coming online, ensure a positive outlook for future growth. As we move into the second half of the year and beyond into 2027, Modon will expand on its objectives, maintaining forward progress with a disciplined and relentless focus on delivery.

    Bill O’Regan, Group Chief Executive Officer of Modon Holding, outlined plans for continued expansion.

    The group entered the second half with total assets of Dh92 billion and equity of Dh57 billion, representing increases of 6 percent and 5 percent respectively since the end of 2025.

    Modon’s performance reflects the broader momentum across Abu Dhabi’s property market, which recorded Dh117 billion in total real estate transactions during the first half of 2026, a 112 percent year-on-year increase driven by surging foreign investment and strong demand across residential and commercial segments.

  • Dubai Rents Fall 6.2% in Q2 as Offices Hold Strong

    Dubai Rents Fall 6.2% in Q2 as Offices Hold Strong

    Tenants in Dubai experienced measurable relief during the second quarter of 2026, with average residential rents falling 6.2 percent from the previous three months and 2.6 percent year-on-year, according to CBRE Middle East’s UAE Real Estate Market Review released on July 29, 2026.

    Home sales prices remained 1.9 percent higher year-on-year, indicating market stabilization rather than correction following several years of sustained growth.

    Around 18,000 residential units were completed across Dubai during the first half of the year, adding inventory and creating more options for tenants and buyers.

    Home Sales Slow from Last Year

    Fewer than 37,000 residential transactions were recorded in Dubai during the second quarter, a 29 percent decline from more than 51,000 sales in the same period of 2025.

    The total value of transactions reached Dh88 billion, compared with nearly Dh154 billion a year earlier.

    CBRE linked the slowdown to softer demand, fewer new project launches and increased housing supply during the first six months of the year.

    Office Rents Continue to Rise

    Dubai’s office market continued to record strong demand, particularly for high-quality space in major commercial districts and free zones.

    Average office rents increased 13 percent in the year to the end of the second quarter, while prime office rents rose 16 percent, consistent with broader trends across the UAE where office rents surged 13 percent year-on-year.

    Occupancy remained at approximately 94 percent, reflecting the limited availability of Grade A offices across the city.

    Demand remained concentrated in DIFC, TECOM and DMCC, where companies continued to lease space in future developments before construction was completed.

    Abu Dhabi recorded similar conditions, with average office rents rising nearly 16 percent and occupancy reaching approximately 96 percent.

    Demand was strongest in Abu Dhabi Global Market, supported by growth among financial services companies, hedge funds and investment firms.

    While several sectors have seen a moderation in performance, the impact has been uneven, with office and industrial markets continuing to benefit from limited supply and sustained occupier demand.

    Matthew Green, Head of Research at CBRE MENA

    Abu Dhabi Homes Record Strong Growth

    Abu Dhabi’s residential market continued to attract buyers during the second quarter, with property values rising 21.6 percent from a year earlier.

    Apartment prices increased 24.4 percent, while average rents remained 3.6 percent higher year-on-year despite some moderation during the quarter.

    Residential sales reached Dh32 billion, marking a 150 percent increase from the same period of 2025, while the number of transactions rose by around 80 percent, reflecting sustained momentum in the emirate’s real estate market.

    Off-plan homes accounted for approximately 83 percent of transactions and 85 percent of total sales value.

    Retail and Industrial Sectors Maintain Momentum

    Retail properties continued to record high occupancy despite softer tourist spending, with occupancy remaining at approximately 98 percent in Dubai and 95 percent in Abu Dhabi.

    Dubai retail rents increased by around 3 percent, while rates in Abu Dhabi remained largely stable.

    Industrial and logistics property remained one of the strongest segments of the UAE real estate market, supported by manufacturing investment, supply chain localization and foreign direct investment.

    Industrial exports reached Dh262 billion in 2025, while government programmes including Operation 300bn continued to support manufacturing and logistics activity.

    CBRE expects the UAE economy to record a marginal contraction of 0.04 percent in 2026 following disruption to trade, tourism, aviation and other consumer-facing sectors.

    “What remains particularly noteworthy is the speed and scale of the UAE’s policy response, from supporting business continuity and trade flows to advancing economic partnerships and diversification initiatives,” Green said.

    “Although near-term conditions are likely to remain challenging, the country’s long-term growth trajectory remains supported by structural reforms, strategic investment and its position as a leading hub for trade, capital and talent.”

  • Abu Dhabi Residential Yields Reach 8.92% in H1 2026

    Abu Dhabi Residential Yields Reach 8.92% in H1 2026

    Abu Dhabi’s residential market maintained momentum across multiple price segments during the first half of 2026, with affordable communities delivering the highest projected rental returns while premium waterfront developments attracted wealthy buyers focused on lifestyle and long-term appreciation.

    Al Reef led the affordable apartment category with a projected return on investment of 8.92 percent, according to data released by property portal Bayut on July 28, 2026. Masdar City delivered 7.63 percent within the mid-tier segment, while Yas Island and Al Maryah Island each generated projected returns of 5.94 percent among luxury apartments.

    Villa returns followed a similar pattern. Al Reef produced a projected yield of 5.92 percent in the affordable category, narrowly ahead of Al Raha Gardens at 5.91 percent. Al Raha Beach offered 5.11 percent among luxury villas, while Saadiyat Island delivered 4.32 percent in the ultra-luxury segment, where investors prioritize exclusivity and capital appreciation over immediate income.

    “The first half demonstrated the residential market’s growing maturity. Demand across multiple price segments demonstrated the depth of market confidence,” said Haider Ali Khan, chief executive of Bayut and Dubizzle Group MENA.

    Rental Demand Strengthens Across Communities

    Abu Dhabi’s rental market remained balanced during the first six months of the year, supported by population growth and expanding employment opportunities. Saadiyat Island maintained its position as the leading ultra-luxury apartment rental destination, while Yas Island recorded strong interest within the luxury segment.

    Average advertised apartment rents increased 2.85 percent in Al Reem Island and 3.81 percent in Al Khalidiyah compared with the second half of 2025. Villa rental demand strengthened as households continued prioritizing space and family-oriented amenities.

    Shakhbout City recorded the strongest increase, with average villa rents rising 6.57 percent during the period. Khalifa City’s average villa rents increased 6.53 percent, while Al Reef posted growth of 3.76 percent. Al Raha Gardens recorded a more moderate gain of 2.37 percent in the mid-tier segment.

    Average advertised rents on Yas Island rose 4.17 percent as the waterfront community attracted tenants seeking premium lifestyle amenities.

    Buyer Interest Spans All Segments

    Saadiyat Island remained the leading destination for ultra-luxury apartments and villas, supported by its cultural attractions and appeal among buyers focused on long-term capital appreciation. Al Raha Beach retained its position among luxury apartment buyers, while Al Reem Island was the preferred choice within the mid-tier segment.

    Al Reef continued to draw value-conscious investors seeking lower entry prices and competitive rental returns. Yas Island emerged as the most popular luxury villa destination, while Al Shamkha remained prominent for investors seeking more affordable properties.

    Interest remained strong in off-plan properties. High-net-worth investors focused on Saadiyat Cultural District, Nouran Living and Manarat Living III on Saadiyat Island. Gardenia Bay, Yas Bay and Diva supported off-plan momentum on Yas Island, while Bloom Living and Reem Hills attracted mid-tier buyers.

    Market Activity Surges 112%

    The Abu Dhabi Real Estate Centre reported Dh117 billion in total real estate transactions during H1 2026, representing annual growth of 112 percent. Transaction volume increased 61.7 percent.

    Sales accounted for Dh86.1 billion across 16,838 transactions, with their value increasing 163.7 percent from a year earlier. Mortgage transactions reached Dh26.7 billion through 8,876 deals.

    Foreign direct investment in Abu Dhabi property reached Dh13.8 billion, increasing 309 percent and exceeding the amount recorded during the whole of 2025. Non-resident buyers from 116 nationalities participated, compared with 82 nationalities during H1 2025.

    Investment zones open to buyers of all nationalities attracted Dh75 billion, up 181 percent annually. Authorities approved eight additional investment zones, bringing the emirate-wide total to 50.

    Transaction Prices Rise in Key Areas

    Independent research by Knight Frank reported that average apartment transaction prices on Yas Island and Al Reem Island increased approximately 18 percent year-on-year through June 2026.

    Saadiyat Island remained Abu Dhabi’s most expensive apartment location, with average transaction values rising around 21 percent to Dh43,100 per square meter. Al Jubail Island led annual villa-price growth at approximately 40 percent, while Saadiyat remained the emirate’s most expensive villa market at Dh26,500 per square meter.

    The consultancy estimated that around 36,900 homes were under construction for delivery between 2026 and 2030. Apartments represented 66 percent of the pipeline, with 70 percent of planned apartment completions scheduled for 2026 and 2027.

    Rental Freeze Takes Effect

    The rental environment changed during the first half when Abu Dhabi temporarily reduced the permitted annual increase from 5 percent to zero. The Abu Dhabi Real Estate Centre said the temporary measure applied across residential, commercial and industrial properties and would remain in place until further notice.

    The authority said demand had exceeded supply during recent years, pushing prices for new leases 15 percent higher across Abu Dhabi and 23 percent higher within investment zones compared with a year earlier. The measure was introduced to provide greater predictability for households and businesses.

    Bayut’s H1 rent changes compare advertised rates between H1 2026 and H2 2025, including periods before the freeze was announced.

    Population Growth Supports Demand

    Abu Dhabi’s population increased 7.5 percent during 2024 to 4.14 million, representing growth of approximately 51 percent over the preceding decade. Employment among people aged at least 15 increased 9.1 percent to 2.76 million.

    The emirate added about 29,000 real estate units during 2024, taking the total to nearly 784,000. Residential properties represented approximately 466,700 units.

    The findings are based on property advertisements placed on Bayut rather than completed transactions. They reflect asking prices, projected yields and search preferences rather than final prices agreed between buyers and sellers.

    Abu Dhabi’s residential market performance contrasts with broader UAE property market trends, where Dubai recorded its first quarterly price decline since the pandemic while other emirates show varied growth patterns. The emirate’s transaction volumes significantly exceeded earlier projections, with foreign investment reaching record levels as authorities expanded designated investment zones.

  • Yas Island and Al Reem Apartment Prices Rise 18% Annually

    Yas Island and Al Reem Apartment Prices Rise 18% Annually

    Abu Dhabi’s prime waterfront communities maintained strong momentum through mid-2026, with average apartment prices on Yas Island and Al Reem Island rising around 18 percent compared to the same period a year earlier, property consultancy Knight Frank reported on July 22, 2026.

    Al Saadiyat Island retained its position as the emirate’s most expensive apartment market, with average transaction prices reaching Dh43,100 per square metre, marking a 21 percent year-on-year increase. The continued price appreciation reflects sustained demand for waterfront living and lifestyle-oriented developments across the capital.

    In the villa segment, Al Jubail Island recorded the strongest annual price growth of approximately 40 percent, while Al Saadiyat Island remained Abu Dhabi’s most expensive villa location with average transaction values of Dh26,500 per square metre.

    Faisal Durrani, Partner and Head of Research, MENA at Knight Frank, said:

    Despite the geopolitical challenges posed by the ongoing regional conflict, Abu Dhabi’s residential market continues to be supported by robust domestic demand, with prime waterfront communities such as Al Saadiyat and Yas Island leading the emirate’s price growth.

    Knight Frank estimates that around 36,900 homes are under construction between 2026 and 2030, with apartments accounting for two-thirds of the pipeline. Approximately 70 percent of new apartment supply is expected to be delivered in 2026 and 2027, although construction cost pressures and higher shipping insurance costs could lead to delays.

    Yas Island accounts for the largest share of upcoming residential supply with around 7,700 units under construction, followed by Fahid Island with 3,550 units and Saadiyat Island with 3,250 units.

    Shehzad Jamal, Partner, Real Estate Consultancy, MENA, noted:

    With close to 37,000 homes in the pipeline through to 2030, supply is beginning to catch up with several years of sustained demand. Even so, the concentration of new stock in a handful of master-planned communities means well-located, ready properties in areas like Al Saadiyat and Yas Island are likely to retain their premium.

    While the residential market remained resilient, the office sector showed early signs of cooling. Office leasing transactions totalled approximately 23,616 in the first half of 2026, down 13 percent from the same period a year earlier, marking the first annual contraction in the current market cycle.

    The decline was recorded across most districts, although Al Reem Island stood out with leasing activity surging by more than 148 percent. Knight Frank expects about 428,000 square metres of new office space to be delivered between 2026 and 2028, with most of the supply entering the market over the next two years.

    James Hodgets, Partner, Occupier Strategy and Solutions, MEA, said:

    The outlook for Abu Dhabi’s office market is firmly positive. Occupancy stands at around 98 percent with rental rates up year-on-year, and with only around 166,000 square metres of new supply due in 2026, Grade A space will remain scarce.

    The consultancy warned that additional office supply, combined with softer leasing demand, could put upward pressure on vacancy rates as the market absorbs new stock through 2028.

    Abu Dhabi’s residential market performance contrasts with Dubai’s stabilization trend, where monthly price declines eased significantly in the second quarter of 2026. The capital’s waterfront premium aligns with broader regional interest in coastal developments, as evidenced by the recent launch of the Dh100 billion Marsa Al Saadiyat waterfront project, which marks the final phase of Saadiyat Island’s masterplan.

  • UAE Property Markets Moderate as Growth Cycle Matures Across Emirates

    UAE Property Markets Moderate as Growth Cycle Matures Across Emirates

    After several years of exceptional growth, the UAE residential property market is showing signs of entering a more mature phase of the cycle. While demand remains broadly resilient and annual price growth continues across most markets, recent data suggests that the rapid pace of capital appreciation witnessed since the pandemic is beginning to moderate.

    The first quarter of 2026 has highlighted an increasingly divergent landscape across the country’s major residential markets. Dubai appears to be transitioning from expansion to stabilization; Abu Dhabi continues to benefit from a delayed recovery cycle; and Ras Al Khaimah is experiencing a gradual easing of growth after two years of strong gains.

    Dubai: From Rapid Expansion to Market Stabilization

    Dubai’s residential market entered 2026 with considerable momentum. January and much of February continued the growth trajectory established over recent years, supported by strong population growth, investor confidence, and a persistent imbalance between housing demand and available supply.

    However, conditions shifted noticeably during March. A combination of geopolitical tensions in the region, the holy month of Ramadan, Eid holidays, increased remote working and homeschooling, and periods of adverse weather contributed to softer market activity.

    According to the ValuStrat Price Index (VPI), Dubai’s freehold residential market recorded annual growth of 8.9 percent during the first quarter of 2026. Despite this positive yearly performance, the index declined by 3.8 percent during the quarter, falling to 229.2 points and marking the first quarterly contraction since 2020.

    The moderation became more evident during the second quarter. In April, the VPI fell to 224.9 points, representing a monthly decline of 1.9 percent, significantly less severe than March’s 5.9 percent contraction. Annual growth remained positive at 5.3 percent, indicating that the market correction was occurring from a position of strength rather than weakness.

    By May, further signs of stabilization emerged. The VPI declined by a more modest 1.2 percent to reach 222.1 points, while annual growth slowed to 2.5 percent. Villa values eased to 297.3 points and apartment values to 170 points, both benchmarked against a base of 100 in January 2021.

    Importantly, rental market performance tells a different story. Residential rents have largely stabilized over the past six months, with apartments and villas recording only modest annual growth. Rather than signaling weaker demand, this trend appears to reflect growing affordability constraints as housing costs have risen substantially over recent years.

    Supply remains a critical factor supporting the market. Despite ambitious development pipelines, supply chain disruptions and rising construction costs continue to constrain delivery timelines. Approximately 7,400 homes were completed during the first quarter of 2026, representing only 6 percent of the preliminary annual completion target.

    Abu Dhabi: Growth Cycle Still Has Room to Run

    In contrast to Dubai, Abu Dhabi’s residential market continued to accelerate during the first quarter of 2026.

    The capital city’s property recovery started later than Dubai’s, placing it at a different point in the cycle. More accessible price points, combined with improving economic fundamentals and growing end-user demand, have continued to support capital value growth.

    The ValuStrat Price Index for Abu Dhabi’s freehold residential market rose to 148 points during Q1 2026, recording quarterly growth of 6.4 percent and annual growth of 17.8 percent. This represented a clear acceleration compared with previous quarters.

    Demand has been particularly strong for strategically located communities offering ready apartments at relatively affordable price points. Consequently, apartment values outperformed villas by a considerable margin.

    Apartment values surged by 10.4 percent during the quarter and 22.7 percent annually, pushing the apartment VPI to 143.4 points. Villa values increased by 2.7 percent quarterly and 13.4 percent annually to reach 152.7 points.

    Supply additions remain relatively limited compared to demand growth. During the first quarter, Abu Dhabi recorded the completion of 2,018 apartments and 392 villas, representing just 13.1 percent of the year’s anticipated residential pipeline.

    Ras Al Khaimah: Growth Slows but Remains Positive

    Ras Al Khaimah’s residential market remains one of the UAE’s most closely watched emerging property sectors, particularly following increased investor interest driven by tourism, infrastructure investment, and major development announcements.

    The ValuStrat Price Index for Ras Al Khaimah’s freehold residential market reached 124.1 points in Q1 2026, remaining stable every quarter while recording annual growth of 9.3 percent. Although healthy by most standards, this marked the slowest annual growth rate recorded over the past two years.

    Villa capital growth continued its gradual deceleration, slowing from 10.4 percent annually in Q4 2025 to 7.4 percent in Q1 2026. Apartment values also experienced softer growth, increasing by 10.3 percent annually while remaining stable during the quarter.

    These figures suggest that certain communities may be approaching pricing ceilings after a period of rapid appreciation. Nevertheless, the emirate continues to offer comparatively attractive entry points relative to Dubai and Abu Dhabi, preserving its appeal among investors and owner-occupiers seeking affordability.

    Outlook: Flattening Rather Than Falling

    Looking ahead, the most likely scenario for the UAE residential market appears to be one of stabilization rather than correction.

    Dubai’s market cycle was already approaching a potential peak before regional geopolitical tensions introduced a temporary shock to sentiment. Since then, the pace of value declines has eased significantly, suggesting that the market is absorbing the disruption. Given continued supply constraints and strong demographic fundamentals, widespread price declines appear unlikely.

    Abu Dhabi’s trajectory differs somewhat. Having entered its recovery phase later, the market retains greater potential for additional growth. Nevertheless, the exceptionally strong gains recorded over the past 18 months are unlikely to continue indefinitely, and signs of moderation are already becoming visible.

    Meanwhile, Ras Al Khaimah and the northern emirates are expected to continue benefiting from their affordability advantage. However, after several years of rapid appreciation, selected communities may increasingly transition towards stability as prices approach local affordability limits.

    The broader picture remains encouraging. While the era of extraordinary post-pandemic growth may be drawing to a close, the UAE residential market appears to be entering a more sustainable phase characterized by balanced growth, constrained supply, and resilient long-term demand fundamentals.

    “The UAE residential market appears to be entering a more sustainable phase characterized by balanced growth, constrained supply, and resilient long-term demand fundamentals.” — Haider Tuaima, Managing Director and Head of Real Estate Research at ValuStrat

  • Abu Dhabi Emerges as Off-Plan Hotspot with Investor Demand Remaining Robust

    Abu Dhabi Emerges as Off-Plan Hotspot with Investor Demand Remaining Robust

    The UAE’s off-plan property market continues to defy expectations, with investor demand remaining robust despite months of geopolitical uncertainty that many analysts had feared would slow long-term real estate commitments.

    Instead of retreating from projects that may take years to complete, investors are increasingly embracing off-plan developments, attracted by lower entry prices, flexible payment plans and the prospect of substantial capital appreciation.

    According to property advisory firm Equity, investor confidence in the UAE’s long-term growth story remains largely intact, with off-plan projects continuing to attract both regional and international buyers.

    What is particularly noteworthy is the growing shift in investor interest towards Abu Dhabi. While Dubai remains the dominant force in the UAE property market, Abu Dhabi accounted for nearly 70% of off-plan transactions within Equity’s portfolio this year, signaling a significant rebalancing of investor activity towards the capital.

    The trend reflects Abu Dhabi’s rapidly evolving real estate landscape, underpinned by major infrastructure investments, regulatory reforms and the expansion of large-scale master-planned communities.

    Industry observers say investors are increasingly seeking opportunities beyond traditional hotspots as the UAE’s property market enters a more mature phase. Rather than focusing solely on short-term gains, many buyers are targeting projects that offer strong long-term value and exposure to future growth corridors.

    Investor confidence in the UAE real estate market remains incredibly strong. Off-plan developments continue to be a key driver of long-term wealth creation, and the rising demand we’re seeing in Abu Dhabi reflects a clear shift toward high-growth opportunities and future-focused investment.

    Emrah Yar, founder and chief executive officer of Equity, said on June 25, 2026.

    The resilience of the off-plan market comes at a time when the UAE property sector continues to post record-breaking numbers. Dubai recorded property transactions worth more than Dh760 billion in 2025, while Abu Dhabi’s real estate market has also witnessed strong growth driven by rising demand from local and overseas investors.

    Market experts attribute the strength of the off-plan segment to several factors. Developers have become increasingly sophisticated in structuring payment plans, offering extended post-handover options and reducing upfront financial commitments. Such incentives have broadened the investor base and improved affordability, particularly among first-time buyers and overseas investors.

    At the same time, the UAE’s growing population, expanding economy and pro-investment policies continue to underpin long-term housing demand. Golden Visa programmes, business-friendly regulations and sustained economic diversification have enhanced the country’s appeal as a destination for global capital.

    Abu Dhabi’s emergence as an off-plan powerhouse is also being driven by major developments on Yas Island, Saadiyat Island, Al Reem Island and other strategic locations, where new residential communities are being launched to cater to rising demand from both investors and end-users.

    The capital’s increasingly transparent regulatory environment, combined with strong government backing and substantial investment in infrastructure, is further strengthening investor confidence.

    Analysts note that the shift towards Abu Dhabi does not signal a weakening of Dubai’s market. Rather, it highlights the growing depth and geographical diversification of the UAE’s real estate sector. Investors are no longer concentrating exclusively on one emirate but are increasingly viewing the country as a multi-market investment destination offering varied risk-return opportunities.

    As market conditions evolve, the continued strength of off-plan sales suggests investors remain confident in the UAE’s long-term economic prospects. Far from slowing down, the country’s property market appears to be entering a new phase of expansion—one characterised by broader geographic participation, deeper investor sophistication and growing confidence in future growth.

  • Abu Dhabi Property Market Rebounds as Buyer Activity Recovers 95%

    Abu Dhabi Property Market Rebounds as Buyer Activity Recovers 95%

    New data from property portals Bayut and dubizzle shows a broad-based recovery in market activity during the first half of 2026, with property searches, buyer enquiries and agent engagement rebounding steadily across the emirate’s most sought-after residential communities.

    According to the platforms’ analysis of user activity between January and June, property views recovered to 95% of their 2026 baseline by Week 14, while property impressions reached 83%, active users climbed to 80% and unique buyers recovered to 87%. The figures point to a gradual return in buyer confidence despite geopolitical volatility that briefly weighed on regional markets.

    The recovery mirrors broader trends in Abu Dhabi’s real estate sector. Data from the Abu Dhabi Real Estate Centre (ADREC) shows the emirate has continued to attract domestic and international investors, supported by long-term residency initiatives, expanding freehold ownership opportunities, major infrastructure investments and a diversified non-oil economy.

    Daily agent responses have risen to 102% of the year’s baseline, indicating that real estate professionals have remained actively engaged with buyers and tenants throughout the recovery period.

    An artificial intelligence-led analysis of more than 7,000 property enquiry calls recorded through the platforms further underlined the market’s stability. Sales enquiries accounted for 54% of all calls, while rentals represented 46%, suggesting balanced demand across both segments.

    “Abu Dhabi’s property market has continued to demonstrate resilience, supported by improving user activity and sustained demand for quality residential communities,” said Haider Khan, CEO of Bayut and dubizzle and CEO of Dubizzle Group Mena.

    The rental market has shown particularly strong momentum. Apartment communities including Masdar City, Al Reef, Al Raha Beach, Yas Island, Al Khalidiyah and Al Reem Island have returned close to or above pre-disruption demand levels, reflecting continued interest in waterfront developments and well-connected residential districts.

    Demand for villa rentals has also strengthened, led by Al Shamkha, Mohamed Bin Zayed City, Khalifa City, Al Reef and Yas Island, attracting families seeking larger homes and access to schools, healthcare and lifestyle amenities.

    Among ready properties, apartments in Al Raha Beach, Yas Island, Saadiyat Island and Al Reem Island remained the preferred destinations for end-users and investors, while Al Shamkha, Al Reef and Khalifa City led demand for ready villas.

    Interest in Abu Dhabi’s off-plan market has also remained robust. Buyers continued to favour apartment projects in Masdar City, Zayed City, Yas Island, Al Reem Island, Al Maryah Island and Al Hudayriat Island, reflecting confidence in the emirate’s long-term urban development strategy. Premium villa destinations such as Ramhan Island, Yas Island and Saadiyat Island also attracted sustained investor attention.

    The market’s resilience comes as Abu Dhabi froze all rent increases in early June 2026, providing greater certainty for tenants and landlords. The emirate is also managing over 600 infrastructure projects worth more than Dh200 billion as part of its economic diversification strategy.

    According to global property consultancy Cavendish Maxwell, thousands of new residential units are scheduled for delivery over the next three years, but demand is expected to remain supported by population growth, expanding business activity and government-led economic diversification under Abu Dhabi’s Falcon Economy strategy.

    Analysts note that population growth and job creation continue to underpin demand for quality housing across both the ownership and rental markets, positioning the emirate’s residential sector for measured growth as it enters the second half of 2026.