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Tag: UAE property market 2026

  • 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.

  • UAE Office Rents Surge 13% in Q2 2026

    UAE Office Rents Surge 13% in Q2 2026

    The UAE’s commercial real estate sector demonstrated resilience during the second quarter of 2026 despite regional geopolitical headwinds that weighed on tourism, retail and broader economic activity, with office and industrial markets continuing to benefit from supply constraints and strong occupier demand.

    Dubai’s office market recorded average rent increases of 13 percent year-on-year in Q2 2026, while prime office rents climbed 16 percent. Occupancy levels remained exceptionally high at approximately 94 percent, reflecting continued shortages of Grade A office stock across key commercial districts and free zones including DIFC, TECOM and DMCC, where pre-leasing activity absorbed a significant portion of future supply before completion.

    Abu Dhabi’s office fundamentals proved equally robust, with average rents rising nearly 16 percent year-on-year and occupancy reaching approximately 96 percent. Demand remained concentrated in the Abu Dhabi Global Market (ADGM) freezone, supported by continued growth across financial services sectors, including hedge funds and investment activities. With less than 300,000 square meters of new office space expected between 2026 and 2027, supply constraints are likely to persist in the medium term.

    “The second quarter marked a notable shift in the UAE’s economic and real estate landscape, as regional geopolitical developments began to weigh on business activity, tourism flows and broader market sentiment. 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,” said Matthew Green, Head of Research at CBRE MENA.

    The report forecast a marginal GDP contraction of 0.04 percent for 2026, reflecting disruptions to trade, tourism, aviation and consumer-facing sectors, while projecting a strong recovery in 2027 as regional conditions stabilize and economic activity normalizes.

    The UAE’s industrial and logistics real estate market remained a standout performer, supported by government-led industrial strategies, supply chain localization initiatives and ongoing foreign direct investment. Industrial exports reached AED262 billion in 2025, while programs such as Operation 300bn and Make It in the Emirates (MIITE) continue to attract manufacturing and logistics investment.

    Despite regional supply chain challenges, leasing activity remained resilient and rental growth continued across major industrial hubs. In Dubai, strong rental growth was recorded across key logistics destinations including Dubai Industrial City, Dubai Investments Park and National Industries Park. Abu Dhabi’s market was supported by significant investment commitments, including AED48.5 billion announced through the MIITE initiative and major new logistics agreements within KEZAD.

    Dubai’s residential real estate market experienced noticeable moderation during the second quarter as demand softened and transaction activity declined. While residential sales prices remained 1.9 percent higher year-on-year, rental performance turned negative, with average rents declining by 2.6 percent annually and 6.2 percent quarter-on-quarter. Increased supply, slower transaction activity and weaker occupier demand contributed to a cooling market environment.

    Transaction volumes fell by 29 percent year-on-year during Q2 2026, with fewer than 37,000 residential sales recorded compared to more than 51,000 in the same period last year. Total transaction values declined to AED88 billion, down from nearly AED154 billion in Q2 2025. Approximately 18,000 residential units were completed during the first half of the year, adding to available inventory while helping moderate pricing pressures.

    In contrast, Abu Dhabi’s residential market continued to outperform, supported by strong domestic demand and sustained investor confidence. Residential values increased by 21.6 percent year-on-year during Q2 2026, driven primarily by apartment price growth of 24.4 percent. Rental growth remained positive at 3.6 percent annually despite short-term moderation during the quarter.

    Transaction activity in Abu Dhabi proved particularly robust, with sales values reaching AED32 billion, representing a 150 percent increase compared to Q2 2025, while transaction volumes grew by approximately 80 percent year-on-year. The off-plan market remained the dominant segment, accounting for roughly 83 percent of all residential transactions and 85 percent of total sales value, reflecting continued demand for newly launched projects.

    “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. 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,” added Green.

    The divergent performance across real estate segments underscores the UAE market’s complexity, with commercial property fundamentals continuing to strengthen while residential markets adjust to increased supply and shifting demand patterns across both emirates.

  • Four Factors Driving Abu Dhabi’s Property Boom in 2026

    Four Factors Driving Abu Dhabi’s Property Boom in 2026

    Abu Dhabi has emerged as one of the UAE’s most attractive real estate destinations for both end-users and investors in 2026, underpinned by robust national frameworks, regulatory transparency, and strategic infrastructure investments, according to a comprehensive report by Object 1.

    The report identified four key factors shaping the next phase of the emirate’s property expansion as the capital prepares for a population exceeding six million residents by 2040.

    Government-Backed Vision Anchors Long-Term Confidence

    The first and most significant driver remains government support and strategic direction. Abu Dhabi Economic Vision 2030 continues to serve as the emirate’s long-term roadmap, guiding sustainable urban expansion, infrastructure development, and enhanced connectivity while reducing reliance on oil revenues.

    “The strategy continues to guide sustainable urban expansion, infrastructure development, and enhanced connectivity across the emirate, providing a strong foundation for resilient growth,” the report stated.

    Strategic Location Connects Global Markets

    The emirate’s strategic geographic position emerged as the second major growth catalyst. Positioned at the crossroads of Europe, Asia, and Africa, Abu Dhabi provides access to a significant share of the world’s population within an eight-hour flight radius, supported by world-class airports, seaports, and highways.

    Key infrastructure assets including Khalifa Port and Zayed International Airport are strengthening the capital’s appeal among international property buyers. Object 1’s buyer data shows strong interest from investors across India, the European Union, the UAE, Turkey, and CIS countries.

    Diverse Opportunities Across Price Points

    Rising demand across multiple market segments and locations represents the third factor behind Abu Dhabi’s real estate growth. The report emphasized that the market’s greatest strength lies in its diversity, offering opportunities across a broad range of price points and catering to different buyer profiles.

    This includes growing demand for luxury properties, ongoing developments focused on leisure and tourism destinations, and increasing participation from mid-market investors seeking long-term value.

    Investor-Friendly Framework Attracts Capital

    The fourth driver is Abu Dhabi’s investor-focused market structure. The UAE’s political and social stability, open economy, and investor-friendly regulatory environment continue to strengthen confidence in the real estate sector.

    Foreign investors benefit from attractive incentives including the absence of personal income tax and 100% foreign ownership in free zones and selected sectors. These fundamentals have generated strong capital inflows, helping position the UAE among the world’s top ten destinations for foreign direct investment.

    Abu Dhabi’s ecosystem is further strengthened by globally recognized institutions such as the Abu Dhabi Global Market (ADGM) and innovation hubs including Hub71, which continue to attract international companies, highly skilled talent, and investment capital.

    Balanced Growth Expected Ahead

    Looking ahead, Object 1 expects property demand in Abu Dhabi to remain robust even as new supply enters the market, helping maintain a healthy and balanced pace of price growth that benefits buyers.

    “International investors continue to show strong interest in smart, sustainable communities built around modern lifestyle concepts,” the report noted, adding that with numerous landmark developments and major tourism projects currently under construction, Abu Dhabi is well-positioned to enter its next chapter of growth with confidence and momentum.

    The report’s findings align with recent market data showing more than 3,200 unit sales in April 2026 and capital values climbing 6.4% in Q1, reflecting sustained investor confidence despite the emirate’s recent rent freeze measures.

  • Dubai Property Market Shifts to Long-Term Investment Destination

    Dubai Property Market Shifts to Long-Term Investment Destination

    The average time for a renter in the UAE to become a homeowner has dropped to just 4.8 years, highlighting a growing shift toward long-term residency and ownership rather than short-term property trading, according to Nagham Hassan, market analyst at eToro, a trading and investing platform.

    The trend reflects changing buyer behaviour across the UAE property market. In 2025, data showed that the investor base expanded to more than 193,000 active participants, with resident investors accounting for over half of total investments by value — a trend analysts say reflects increasing market maturity and stronger long-term confidence in the UAE economy.

    Dubai has also launched the First Time Home Buyer Programme to support individuals seeking to purchase their first home in the emirate by offering a range of exclusive benefits that make it easier to enter the property ownership market.

    Industry experts noted that strong demand, fast-moving launches and limited supply in key communities are encouraging buyers to make quicker long-term purchasing decisions rather than waiting on the sidelines.

    Dubai recorded Dh252 billion in real estate transactions during the first quarter of 2026, up 31 per cent year-on-year, following a record-breaking Dh917 billion in transactions during 2025. Meanwhile, property prices rose 9.81 per cent last year, moderating from the double-digit gains seen in previous years.

    Despite heightened regional tensions earlier this year, Dubai’s property sector showed resilience. February transactions reached Dh84 billion before slowing to Dh56 billion in March as buyers briefly paused amid geopolitical uncertainty. However, sales rebounded 23 per cent in April to Dh69 billion, signalling renewed confidence in the market.

    The resilience has also extended to listed real estate developers, although share prices have lagged behind physical market performance.

    Emaar Properties entered 2026 with a revenue backlog of Dh163.4 billion, up 29 per cent year-on-year, while Aldar Properties reported a 12 per cent increase in revenue and a 22 per cent rise in EBITDA, alongside total liquidity of Dh38.2 billion.

    A resolution in the regional conflict would act as a catalyst, unlocking the pent-up demand that has already proven itself in the physical market and accelerating the repricing of both stocks toward their fundamental value.

    Analysts say the sector’s long-term outlook remains supported by escrow-protected sales structures, recurring income streams and strong project pipelines, making major UAE developers relatively insulated from short-term market volatility.

    The structural shift toward homeownership is further reinforced by Dubai homeowners now holding properties for periods comparable to mature markets like London and New York, reflecting the emirate’s maturation as a global residential hub.