Abu Dhabi's residential property market continued to expand in the first half of 2026, with residential sales value nearly tripling from a year earlier to AED70.4 billion ($19.2 billion), driven by strong off-plan demand.

Off-plan transactions accounted for 89% of residential sales value and 82% of deals during the period, while repeat sales prices rose 20% year-on-year for apartments and 12% for villas, stated Abu Dhabi Real Estate Centre (ADREC) in its H1 2026 market report.

The emirate recorded 233,000 active residential lease contracts, with total lease values rising 8% year-on-year to AED9.3 billion. Lease contract volumes increased 2%.

Residential supply reached about 409,000 units, representing average annual growth of 2.9% since 2022. The Abu Dhabi region accounted for 79% of the emirate's residential stock, with annual average supply growth of 3.3%.

About 71,000 additional residential units are expected to be delivered across the emirate by 2030, with annual completions projected to peak at about 21,800 units in 2028, it stated.

Development projects are expected to account for 77% of supply growth in the Abu Dhabi region between the second half of 2026 and 2030, with building permits accounting for the remainder, ADREC said.

Foreign buyers driving demand

Investment zones accounted for more than 22% of Abu Dhabi's residential stock, with about 72,000 units in the first half of 2026. Al Reem Island led with 27,500 units, followed by Al Raha, Yas Island and Saadiyat Island.

Emirati buyers committed AED21 billion to residential purchases, up from AED8.9 billion in the first half of 2025.

Resident expatriates and non-resident foreign buyers together accounted for 70% of residential sales value, according to ADREC.

Hudayriyat Island accounted for the largest share of residential sales value at 19 billion dirhams, or 27%, followed by Saadiyat Island with 13.3 billion dirhams, Al Reem Island and Al Maryah Island with AED10.5 billion and Yas Island with AED7.3 billion.

Ten leading developers accounted for 90% of off-plan primary sales, worth AED51 billion, while 10 projects generated 43% of residential unit sales, valued at AED30 billion.

In the ready-property market, 61% of purchases were completed in cash.

Six districts — Saadiyat Island, Al Reem Island, Yas Island, Zayed City, Khalifa City and Al Hudayriyat Island — are expected to account for 77% of additional residential supply through 2030.

Commercial market booming

Retail supply reached 3.85 million sqm of gross leasable area, up 5% on an annualised basis, with occupancy rates in the mid-90% range and new lease prices rising 9%.

Office supply stood at 3.4 million sq m up 0.3% from the end of 2025. Occupancy remained at about 95% across the overall market as well as prime and Grade A segments, while new lease prices rose 13%.

Rashed Al Omaira, the director general of ADREC, said the first half of 2026 showed a resilient market supported by sustained demand, regulation and transparency.

The lion's share of residential sales involving properties that had not yet been built increased the importance of regulatory oversight before completion, including measures to protect buyer funds and provide clear market information, he added.-TradeArabia News Service