Off-plan transactions surge 156% year-on-year, while office rents climb 27.3% amid sustained demand for quality residential and commercial space
esidential property values in Abu Dhabi rose 17.8 per cent year-on-year during the second quarter of 2026, led by a 24.1 per cent increase in apartment prices, according to ValuStrat.
The ValuStrat Price Index for the capital’s freehold residential market reached 151.1 points, up 2.1 per cent from the previous quarter. The quarterly increase was the slowest in two years, indicating a more measured pace of growth after several quarters of strong appreciation.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
ValuStrat said Abu Dhabi remained at an earlier stage of its property cycle than Dubai, with comparatively accessible prices continuing to support demand from end-users.
Apartment values increased 2.9 per cent quarter-on-quarter, while villa prices rose 1.3 per cent quarterly and 12 per cent annually.
Al Reef leads price growth
Al Reef recorded the strongest annual appreciation among the apartment communities tracked by ValuStrat, with values rising 41.6 per cent.
It was followed by Al Muneera Island at 24.7 per cent, Al Reem Island at 22 per cent and Al Bandar at 21.8 per cent. Apartment values on Saadiyat Island increased 18.3 per cent.
Al Reef also led villa price growth, with annual appreciation of 27.9 per cent, followed by Saadiyat Island at 12 per cent and Al Raha at 4.6 per cent.
Residential rents increased 4.7 per cent annually but were broadly stable during the quarter. Average asking rents across Abu Dhabi stood at about Dh163,700 a 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 per cent, followed by one-bedroom homes at 7.7 per cent. Four-bedroom villas led the villa segment, with rents rising 7.2 per cent.
Off-plan sales dominate transactions
Abu Dhabi recorded 6,061 off-plan transactions during the second quarter, representing 84 per cent of total residential sales and an increase of 156 per cent from a year earlier.
Off-plan prices averaged Dh2,104 per square foot, up 21.2 per cent annually, although they declined 4 per cent from the previous quarter.
The average off-plan transaction value reached Dh4.4 million, rising 25.9 per cent year-on-year as developers continued to focus on premium residential projects.
Ready-home transaction volumes fell 28.3 per cent annually to 1,145 sales. However, average prices for completed homes increased 10.9 per cent to Dh1,442 per square foot.
The average ready-home transaction value reached Dh2.8 million, up 18.8 per cent annually.
Across all residential sales, transaction volume stood at 7,206, down 8 per cent from the previous quarter, while the average transaction value was Dh4.14 million.
Office rents jump 27.3%
Abu Dhabi’s commercial property market also 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 per cent annually and 11.4 per cent quarterly. Average occupancy in central business district buildings reached 90 per cent.
Office asking prices rose 16.3 per cent 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 about 98 per cent.
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.
