Abu Dhabi’s residential property sales values climbed 178% year-on-year to reach AED67.8 billion ($18.46 billion) in H1 2026, says leading real estate advisory and property consultancy, Cavendish Maxwell. 

There were 15,500 transactions from January to June – around double the amount recorded in H1 last year. However, sales moderated in Q2, according to Cavendish Maxwell’s Abu Dhabi H1 2026 residential real estate report. 

Andrew Laver, Director, Cavendish Maxwell Abu Dhabi, said: “As lags in transaction registration data unwind, Q2 2026 figures are an early indication of underlying market activity, while Q3 statistics will provide more clarity on whether the moderation is a temporary pause or a broader adjustment in market conditions. 

“The robust performance in H1 reflects continued investor confidence and resilience in the wider economy. Despite heightened regional uncertainty transactions, values, prices and rents all continued to rise year-on-year. 

“The capital’s residential market started the second half of the year with strong momentum. While all the factors supporting demand remain in place, the timing of new supply, which includes more than 53,000 units between now and the end of 2028, along with developer launch activity and broader economic conditions are likely to have a greater influence on transactions and price performance. The key consideration is whether demand can continue to absorb the planned supply pipeline. 

“Although the regional geopolitical environment remains the main downside risk, Abu Dhabi’s strong fiscal position and substantial external buffers help absorb these pressures,” he added.

The off-plan sector – which saw sales rise by 173% compared to H1 last year – dominated the market, accounting for 83% of transactions and 12,800 of total sales. 

Cavendish Maxwell’s report also reveals that sales prices and rental rates continued to grow in the first six months of the year, with apartment prices up 16.4% and villa prices more than 10% compared to H1 2025. The cost of renting an apartment rose 9.4%, with villa rents up nearly 4%. The temporary rent freeze, introduced in June, should limit further rental hikes in the near term, the company added.

Al Reem Island dominated apartment sales, with more than 4,470 transactions, while Al Hudayriyat secured the biggest share of villa sales, with over 1,570 purchases.

Abu Dhabi delivered 5,700 new homes in H1, taking its total residential stock to 323,600 units. Another 10,500 are set for handover by the end of the year. 

Off-plan versus ready homes

Abu Dhabi’s residential market recorded the highest first-half transaction volume in recent years, almost entirely driven by the off-plan segment, which rose 173% year-on-year and nearly 14% compared to H2 2025. In contrast, with 2,700 transactions, ready home sales declined 8.5% compared to H1 2025 and more than 25% against H2 last year. 

The robust growth in off-plan purchases was sustained in Q2, but the pace moderated from the elevated levels at the end of last year and beginning of 2026. 

Off-plan purchases accounted for AED60.3 billion of total sales values in H1, a rise of nearly 250% year-on-year and more than 50% higher than in H2 2025. Off-plan villa and townhouse purchases topped AED31 billion and apartments AED28.5 billion, hikes of nearly 300% and 209% respectively. Ready property sales values grew 4.6% to AED7.5 billion, despite the drop in transactions.

Price and rental increases by location

All major Abu Dhabi districts saw double-digit price increases. Apartments were up 16.4% on average, with Yas Island recording the strongest increase at more than 18%, followed by Al Reem Island (17.3%) and Al Raha Beach (17.2%). 

The highest increases for villas were at Yas Island at 14.2%, followed by Saadiyat Island at 10.7%, both higher than the average rise of 10.1%. 

On the rental front, apartments at Yas Island commanded the largest increase at nearly 18%, with Al Reem Island at just over 13% and Al Reef at 12%. The average rent rise for apartments was 9.4%. Al Reef led the villa rent increase chart at 5.5%. -TradeArabia News Service