Abu Dhabi apartment prices rise 24 per cent in third quarter

Abu Dhabi apartment and villa prices surged 24% and 10.2% respectively in the third quarter, according to ValuStrat report. Al Reef led the Al Reef area with apartment prices jumping 36.6% and villa values increasing by 26.8%. Al Bandar, Al Muneera Island and Al Reem Island experienced apartment price jumps of 24.7%, 24.4% and 22% respectively.

Villa prices in Saadiyat Island rose by 9.9%, while Hydra Village saw a 2.9% increase. Overall, residential property values in Abu Dhabi grew 16.8% annually during the quarter. ValuStrat managing director Haider Tuaima noted the market's strength, attributing the residential appreciation to apartments and commercial performance supported by business activity and limited office space availability.

Freehold homes in Abu Dhabi's secondary market also saw average annual capital gains of 16.8%. Despite geopolitical uncertainty, Abu Dhabi's economy remained robust, with new economic licences rising 21% year-on-year in the first quarter of 2026. ADGM assets under management grew by 54% in the first half of 2026, reflecting sustained business activity and investment.

About 50,000 professionals now work in ADGM, a 34% increase from the first half of the previous year. Apartment rents rose 1.5% annually in the third quarter, averaging Dh121,500 per year, while villa rents increased by 1.8% to an average of Dh258,000. Rents remained stable on a quarterly basis following a temporary rent freeze introduced by Abu Dhabi from June 2, replacing the 5% annual increase cap.

Approximately 13,534 new homes are expected to enter Abu Dhabi's market this year, with 3,508 completed in the first nine months of 2026 and 40,510 homes scheduled for delivery by 2030. While UAE property market activity shows signs of slowing due to geopolitical concerns, Abu Dhabi's residential property market saw transaction volumes decline 7% annually to 6,085, but values rose 32% to Dh21.5 billion.