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Tag: UAE property market

  • Dubai Completes 24,000 Property Units Worth Dh111 Billion in H1 2026

    Dubai Completes 24,000 Property Units Worth Dh111 Billion in H1 2026

    The Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence and Chairman of The Executive Council of Dubai reviewed the completion report on Thursday, highlighting a 52 percent increase in project delivery by investment value year-on-year.

    “I reviewed the report on real estate projects completed in Dubai in the first half of 2026, which highlights the sector’s continued growth,” Sheikh Hamdan said in a social media post on August 20.

    The 104 completed projects represent a substantial addition to Dubai’s residential and commercial inventory, with the 24,000-plus units entering a market that recorded 24,800 total residential completions during the first six months of the year according to separate industry data.

    Sheikh Hamdan attributed the completion figures to sustained confidence in Dubai’s investment climate and the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum. “Today’s figures reflect the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, reaffirming the strength and resilience of Dubai’s real estate sector and the growing confidence in its investment and business environment,” he said.

    The 36 percent year-on-year increase in delivered units comes as Dubai’s property sector continues to attract new developers at an average rate of 25 per month, with 186 real estate development companies entering the market between January and mid-August 2026.

    The Dh111 billion in completed project value underscores the scale of construction activity in the emirate, where residential sales reached AED34.9 billion in July alone as buyers returned to the secondary market following sustained price moderation.

    Sheikh Hamdan concluded his remarks by reaffirming Dubai’s trajectory: “Dubai’s ambition and leadership know no limits.”

    The completion data provides official confirmation of supply entering the market during a period when residential rents declined and home prices eased slightly quarter-on-quarter, reflecting the impact of new inventory on tenant and buyer conditions across the emirate.

  • Abu Dhabi Home Resales Jump 56% in Q2 2026

    Abu Dhabi Home Resales Jump 56% in Q2 2026

    Homebuyers in Abu Dhabi are increasingly targeting properties in projects nearing handover, as rising prices across several established communities and a sharp increase in resales point to continued demand in the capital’s housing market.

    The estate agency recorded 883 off-plan secondary transactions during the quarter across 25,422 active units, up from 567 transactions in the first quarter of 2026.

    Yas Island remained the center of activity, accounting for 366 transactions, or more than 40 percent of the quarterly total. Yas Island Apartments recorded 245 deals, while North Yas accounted for another 121. Gardenia on Yas Island was the busiest individual project, with 156 transactions.

    Near-Handover Projects Attract Buyers

    Some of the highest turnover rates were recorded in developments approaching completion. Sustainable City led with an annual turnover rate of 18.8 percent, followed by Yas Golf Collection at 17.9 percent, Reem Eleven at 16.1 percent and Manarat Living 1 at 15.4 percent.

    Ben Crompton, Managing Partner of Crompton Partners, said buyers were becoming more selective, with stronger liquidity emerging in well-priced developments where completion was clearly visible.

    Handover timing, product, pricing and the depth of the resale market were becoming increasingly important in determining performance.

    Activity also broadened beyond Abu Dhabi’s main island communities. The outskirts recorded 235 off-plan secondary transactions, led by Al Reeman with 148 sales and Bloom Living with 80. Saadiyat Cultural District recorded 97 secondary off-plan transactions, while Saadiyat South posted 139.

    Reem Island Leads Established Market

    Across six established areas tracked by Crompton Partners, 483 properties worth Dh1.25 billion changed hands during the second quarter.

    Reem Island remained the most active established residential market, with 223 transactions worth Dh399.3 million.

    Prices also recorded strong annual gains across several Reem communities. Average prices per square meter rose 33.6 percent at Sun Sky Gate, 27.1 percent in Najmat, 25.7 percent at Marina Square, 20.2 percent in City of Lights and 19.8 percent across Shams Reem Island.

    Al Reef recorded 108 transactions worth Dh183.7 million, with Al Reef Villas 2 posting a 59.3 percent annual increase in average prices. Al Reef Apartments rose 40.2 percent.

    On Yas Island, average prices increased 57.6 percent at Yas Acres, 32 percent at Water’s Edge and 29.2 percent at Noya.

    Saadiyat Island Commands Premium Values

    Saadiyat Island remained the highest-value market among the areas tracked. Just 13 transactions generated Dh273.6 million in sales during the quarter, including Dh205.5 million from six transactions at HIDD.

    Mamsha remained the highest-priced community in the report at Dh57,365 per square meter, while Saadiyat Beach Villas posted an 83.9 percent annual price increase.

    Crompton cautioned that percentage movements in communities with very low transaction volumes should be treated carefully. He noted that Abu Dhabi was increasingly becoming a market where individual communities and projects perform differently, making transaction liquidity, buyer demand and proximity to completion more important than broad market trends.

    The resale surge comes as Abu Dhabi property prices rose 17.8% year-on-year in Q2 2026, while total transactions doubled to $31.86 billion in the first half of the year. Meanwhile, Dubai recorded $9.5 billion in sales in July 2026 as buyers returned to the secondary segment.

  • Dubai Real Estate Sales Hit $9.5 Billion in July 2026

    Dubai Real Estate Sales Hit $9.5 Billion in July 2026

    Sale transaction volumes rose from 8,877 in June to 9,217 in July 2026, up 3.8 percent, driven almost entirely by the secondary market where volumes grew approximately 18 percent from 4,100 to 4,800 deals. The shift points to stronger appetite for ready stock as value-seeking investors re-entered through the mid-market segment.

    Commercial activity rose alongside residential sales, with volumes up 24.8 percent to 397 deals and total value reaching AED5.8 billion.

    Buyer and Seller Expectations Converge

    Buyer sentiment across Dubai’s residential market continued to normalize during July. The share of home seekers planning to buy within six months edged up from 66 percent to 68 percent, while the proportion expecting further price declines fell from 56 percent to 52 percent, extending its correction from the 73 percent peak recorded immediately after regional conflict.

    Those expecting prices to stay flat or rise increased from 44 percent to 48 percent.

    Property Finder’s sale-listing price index settled at 2.5 percent below the pre-conflict baseline for a second consecutive month. The gap between advertised and final transacted prices, which had widened to between 6 percent and 12 percent by May, narrowed to between 5.5 percent and 11 percent in July.

    “July confirms a market that has moved back into growth, with transaction volumes and values rising together and buyers returning with real intent. The more telling signal sits beneath that growth: sellers have paused further price cuts and the gap between asking and achieved prices is narrowing, which brings the two sides of a deal closer together and turns a single strong month into a lasting trend,” said Cherif Sleiman, Chief Revenue Officer at Property Finder.

    Apartments Regain Lead as Investor Confidence Returns

    A clearer divide opened between property segments in July 2026. Apartments regained share from villas and townhouses, rising from 59.5 percent to 62 percent of sale leads, with studios and one-bedroom units driving the gain—a sign of stronger investor appetite for higher-yield, more liquid stock.

    Mortgage Finder data indicated a similar return of investor confidence, with the investor share of mortgage transactions rising from 9 percent in June to 12.8 percent in July, concentrated in the middle-income bands.

    Applicants earning between AED20,000 and AED59,999 monthly made up 62.4 percent of all mortgage applications, while higher earners above AED60,000 continued to face a tighter villa and townhouse pipeline.

    Dubai Land Department data shows how differently the two segments finance purchases. Of 2,887 mortgages registered in July, worth AED4.93 billion, apartments accounted for 81.9 percent of volume, yet only 20.3 percent of all apartment sales involved a mortgage, against 67.8 percent of villa sales. Apartments are transacting largely in cash, consistent with an investor and off-plan buyer base, while villas skew toward financed, owner-occupier purchases.

    Activity extended into rentals, where new leasing transactions ran 2 percent above the pre-conflict baseline and renewals returned to pre-conflict levels, supported by tenants using softer rents to move into larger homes and stronger communities.

    The July 2026 figures reflect sustained momentum in a market where 186 new developers entered between January and mid-August, while 24,800 residential units were completed during the first half of the year.

  • Emaar Books Dh26.6 Billion in H1 Property Sales

    Emaar Books Dh26.6 Billion in H1 Property Sales

    The Dubai-listed developer reported EBITDA of Dh12.9 billion for the six months ended June 30, up 24 percent year-on-year, while net profit before tax increased 23 percent to Dh12.8 billion compared with the same period in 2025.

    The Dh164.9 billion property sales backlog was 13 percent higher year-on-year and reflects sales that are expected to be recognised as projects progress and units are delivered, positioning Emaar with multi-year revenue visibility.

    UAE Development Business Drives Performance

    Emaar’s UAE build-to-sell business, led by Emaar Development, recorded Dh22.4 billion in property sales during the first half, underscoring sustained demand across Dubai’s residential property market.

    Emaar Development generated revenue of Dh13.3 billion, up 34 percent year-on-year, while net profit before tax increased 41 percent to Dh7.8 billion.

    Including other UAE development operations such as Dubai Creek Harbour, consolidated revenue from the group’s UAE property development business reached Dh17.7 billion, an increase of 30 percent.

    The UAE development revenue backlog stood at Dh135.7 billion at the end of June, up 6 percent from the same period in 2025, reflecting strong pre-sales across the developer’s project portfolio.

    Emaar launched 11 projects during the first half across Emaar South, Dubai Hills Estate, The Heights Country Club, The Oasis, Rashid Yachts & Marina and Expo Living. The company also announced a new Dh200 billion masterplan during the period, adding to its longer-term development pipeline.

    Our first half results reflect the discipline, consistency, and long-term approach that define Emaar. Dubai never stands still, and neither do we. Every phase of the city’s growth creates new opportunities to raise expectations and redefine experiences. Emaar’s role is to continue building destinations that reflect Dubai’s ambition while maintaining the quality, innovation, and operational excellence that have shaped our business from the beginning.

    Mohamed Alabbar, founder of Emaar

    Large Development Land Bank Supports Pipeline

    The group held approximately 590 million square feet of mixed-use development land, including about 316 million square feet in the UAE, providing a substantial platform for future project launches.

    Its international development operations recorded Dh4.2 billion in property sales during the first half, with revenue reaching Dh1.1 billion, up 8 percent year-on-year.

    International operations accounted for about 4.6 percent of Emaar’s total revenue during the period, with Egypt and India among its key markets.

    Malls Maintain 98 Percent Occupancy

    Emaar’s shopping malls, retail and commercial leasing business generated Dh3.5 billion in revenue during the first half, an increase of 9 percent year-on-year.

    EBITDA from the segment rose 10 percent to Dh3.1 billion, while average occupancy across the portfolio remained at about 98 percent at the end of June.

    The company said leasing income remained supported by a predominantly base-rent structure despite a moderation in tenant sales.

    Emaar’s hospitality, leisure and entertainment business generated Dh1.6 billion in revenue during the period, while its UAE hotels recorded average occupancy of 60 percent.

    The group said softer international tourism flows affected the hospitality portfolio, with local and domestic demand providing some support.

    Recurring Revenue Portfolio Stable

    Recurring revenue from Emaar’s malls, hospitality, leisure, entertainment and commercial leasing assets stood at Dh5.1 billion, broadly unchanged from the first half of 2025.

    EBITDA from the recurring revenue portfolio was Dh4 billion and accounted for about 31 percent of total group EBITDA, providing a stable earnings base alongside the developer’s project sales.

    The results underscore Emaar’s position as Dubai’s largest developer by sales value, with performance aligning with broader market trends that saw the emirate complete 24,800 residential units during the first half of 2026 and record Dh221.4 billion in transaction values across 79,300 deals.

  • 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.

  • Abu Dhabi Home Values Rise 17.8% as Apartments Gain 24.1%

    Abu Dhabi Home Values Rise 17.8% as Apartments Gain 24.1%

    The ValuStrat Price Index for Abu Dhabi’s freehold residential market reached 151.1 points in Q2 2026, marking a 2.1 percent increase from the previous quarter. The quarterly gain was the slowest in two years, signaling a more measured pace of growth after several quarters of strong appreciation.

    Apartment values rose 2.9 percent quarter-on-quarter, while villa prices increased 1.3 percent quarterly and 12 percent annually. ValuStrat noted that Abu Dhabi remains at an earlier stage of its property cycle compared to Dubai, with comparatively accessible prices continuing to support demand from end-users.

    Al Reef Leads Price Growth

    Al Reef recorded the strongest annual appreciation among apartment communities tracked by ValuStrat, with values rising 41.6 percent year-on-year. It was followed by Al Muneera Island at 24.7 percent, Al Reem Island at 22 percent and Al Bandar at 21.8 percent. Apartment values on Saadiyat Island increased 18.3 percent.

    Al Reef also led villa price growth, with annual appreciation of 27.9 percent, followed by Saadiyat Island at 12 percent and Al Raha at 4.6 percent.

    Residential rents increased 4.7 percent annually but remained broadly stable during the quarter. Average asking rents across Abu Dhabi stood at approximately Dh163,700 per year. Apartment asking rents averaged Dh122,500 annually, while villa rents averaged Dh260,000.

    Studios recorded the strongest annual apartment rental growth at 13.8 percent, followed by one-bedroom homes at 7.7 percent. Four-bedroom villas led the villa segment, with rents rising 7.2 percent.

    Off-Plan Sales Dominate Transactions

    Abu Dhabi recorded 6,061 off-plan transactions during the second quarter, representing 84 percent of total residential sales and marking a 156 percent increase from a year earlier. Off-plan prices averaged Dh2,104 per square foot, up 21.2 percent annually, although they declined 4 percent from the previous quarter.

    The average off-plan transaction value reached Dh4.4 million, rising 25.9 percent year-on-year as developers continued to focus on premium residential projects.

    Ready-home transaction volumes fell 28.3 percent annually to 1,145 sales. However, average prices for completed homes increased 10.9 percent to Dh1,442 per square foot. The average ready-home transaction value reached Dh2.8 million, up 18.8 percent annually.

    Across all residential sales, transaction volume stood at 7,206, down 8 percent from the previous quarter, while the average transaction value was Dh4.14 million.

    Office Rents Jump 27.3%

    Abu Dhabi’s commercial property market maintained strong momentum, supported by sustained business activity and limited availability of high-quality offices. Office asking rents in the capital’s main commercial districts increased 27.3 percent annually and 11.4 percent quarterly. Average occupancy in central business district buildings reached 90 percent.

    Office asking prices rose 16.3 percent year-on-year to an average of Dh2.7 million, while the median asking price stood at Dh1,666 per square foot.

    Mubadala Investment Company and Aldar Properties have announced a Dh60 billion expansion of Al Maryah Island, which is expected to add more than 16 million square feet of mixed-use space and expand Abu Dhabi Global Market’s commercial capacity.

    The industrial and logistics market also remained well supported, with occupancy at Khalifa Economic Zones Abu Dhabi reaching approximately 98 percent. ValuStrat said demand for modern warehouses and logistics facilities continued to exceed the availability of Grade A stock, supported by manufacturing, e-commerce, pharmaceuticals and food companies.

    The residential rental market showed signs of stabilization following the mid-year rent freeze, with landlords increasingly focused on tenant retention and occupancy rather than short-term price increases, according to ValuStrat’s Q2 2026 market report released on August 4, 2026.

  • 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.”

  • UAE Investors Drive Half of Sharjah Property Market in H1 2026

    UAE Investors Drive Half of Sharjah Property Market in H1 2026

    A statistical report released by the Sharjah Real Estate Registration Department on July 27, 2026, showed that 9,655 Emirati investors contributed 50.6 percent of the emirate’s total real estate trading value of Dh29.5 billion during the first six months of the year.

    The department said the figures reflected growing confidence in Sharjah’s investment environment, supported by modern legislation, sustainable urban development and an expanding pipeline of real estate projects.

    Women drive nearly quarter of sales value

    The report highlighted the increasing role of Emirati women in the property market. Women accounted for 28 percent of traded properties and 24.7 percent of the total value of sales transactions, while men represented 72 percent of traded properties and 75.3 percent of transaction values.

    Ownership data showed women accounted for 40.7 percent of Emirati property owners involved in sales transactions, compared with 59.3 percent for men, underlining women’s growing role in investment and wealth creation.

    Young investors maintain strong presence

    Buyers aged 35 and below recorded notable activity, reflecting increasing awareness of real estate investment among younger Emiratis, while investors aged between 36 and 53 remained the largest segment. Investors aged 54 and above also continued to play a significant role in the market.

    Abdulaziz Ahmed Al Shamsi, Director-General of the Sharjah Real Estate Registration Department, said the results reflected the strength of the emirate’s real estate sector and the success of its long-term development strategy.

    The report demonstrated not only the scale of investment but also the expanding participation of Emiratis, particularly women and young investors, reinforcing Sharjah’s position as a preferred destination for sustainable real estate investment.

    Sharjah’s performance in the first half of 2026 reflects broader momentum across the UAE property sector. Dubai recorded 87,800 real estate transactions worth Dh291.7 billion during the same period, while Abu Dhabi registered Dh117 billion in deals, marking a 112 percent year-on-year increase as foreign direct investment surged to a record Dh13.8 billion across 116 nationalities.

  • Union Properties Plans Dh2 Billion Dubai Community After 68% Revenue Jump

    Union Properties Plans Dh2 Billion Dubai Community After 68% Revenue Jump

    Union Properties is progressing with a new Dh2 billion master-planned residential development as the company transitions from financial restructuring to an active growth phase backed by strengthening cash flows and improved operational performance.

    The planned community will feature approximately 167 townhouses, villas and bungalows, and is currently undergoing the approval and permitting process. The project forms part of Union Properties’ expanding portfolio, which includes the ongoing Takaya and Mirdaf developments.

    Revenue increased 68 percent year-on-year to Dh529.3 million during the first half of 2026, compared with Dh316 million in the corresponding period of 2025. Gross profit rose 41 percent to Dh107 million from Dh75.6 million, reflecting higher revenue and improved operating efficiencies.

    Second-quarter revenue climbed 69 percent to Dh257.8 million, while gross profit reached Dh48.6 million during the period.

    Through disciplined execution, we have strengthened our balance sheet, enhanced operational efficiency and built a high-quality development pipeline that is now translating into tangible financial results.

    Eng. Amer Khansaheb, Chief Executive Officer and Board Member of Union Properties, said the company now has clear visibility over future earnings. “With approximately Dh4 billion of projects under development, Dh3.87 billion in potential development revenue with higher margins yet to be recognised, and a strong liquidity position, we have clear visibility over future earnings and significant capacity to pursue further growth,” he stated.

    Development revenue of Dh101.6 million was recognised during the first half, leaving the majority of the Dh3.87 billion pipeline to flow through financial results over the next two and a half years as construction progresses and project milestones are achieved.

    Union Properties maintained average cash balances exceeding Dh400 million during the first six months, providing the developer with funding for construction activity, new project launches and further expansion while preserving capital structure discipline.

    The company is using its in-house contracting arm, Tetra Edge, to manage execution and project margins across its portfolio as it accelerates delivery timelines.

    Management confirmed that development revenue is expected to account for a growing share of financial performance as work advances on existing projects and new phases enter the market. The developer indicated it will continue focusing on project delivery, portfolio expansion and profitability growth over the coming years.

    Union Properties’ results reflect broader momentum across Dubai’s diversified property market, where demand remains strong despite moderating price growth in certain segments. The company’s multi-year revenue visibility positions it to benefit from sustained investor and end-user interest as commercial and residential sectors continue expanding.