EL7.AI
GeneralMedium•29 October 2026•
4 min read

Average Abu Dhabi Apartment Prices Rise 9% in Third Quarter as Residential Transactions Slow

Key Facts

1Average apartment values in Abu Dhabi rose 9% year on year in the third quarter of 2026, while villa and townhouse values increased 8%.
2Abu Dhabi recorded 6,085 residential transactions in the third quarter, down 19% from the previous quarter, with off-plan sales accounting for 81% of activity.
3Registered residential sales were worth AED 27.4 billion in the third quarter, up 31.1% year on year, despite a 7.8% decline in the number of deals.
4Rental transactions rose 29% in the third quarter, driven mainly by lease renewals.

Average apartment values in Abu Dhabi rose 9% year on year in the third quarter of 2026, while villa and townhouse values increased 8%, according to a Savills report published on October 14. The gains came as transaction activity moderated after a strong start to the year, the report said. The emirate recorded 6,085 residential transactions during the quarter, down 19% from the previous quarter. Off-plan sales accounted for 81% of total activity.

Other data show a different picture depending on the indicator used and the comparison period. Property Monitor’s Property Monitor 971 summary recorded 6,070 residential sales in the third quarter, worth AED 27.4 billion, with the number of deals down 7.8% year on year and their value up 31.1%. The median registered residential sale price also reached AED 1,837 per square foot, up 16.6% year on year. This median measures registered prices, while Savills’ figure covers average apartment values, so the two indicators do not measure the same thing. The divergence between the number and value of deals reflects the greater relative weight of higher-priced transactions among registered sales.

In this context, the number of residential transactions valued at more than AED 10 million rose 35% quarter on quarter in the third quarter, according to Savills. Ongoing demand, the report said, was concentrated in higher-value properties, particularly off-plan and luxury homes. Savills did not attribute the moderation in transactions to a single cause, describing activity only as having slowed after a strong start to the year. Rental transactions also rose 29% during the quarter, with lease renewals the main driver of the increase. New rental prices showed mixed performance across the main residential communities, the report said.

First-half data provide context for price and sales movements before the third quarter. The Abu Dhabi Real Estate Centre said apartment resale prices rose 20% year on year in the first half of 2026, compared with 12% for villas. Residential unit sales reached AED 70.4 billion, up from AED 25.3 billion in the first half of 2025, while off-plan sales accounted for 89% of sales value. Foreign residents and non-resident foreign buyers together accounted for 70% of residential sales value in the first half. In its second-quarter report, ValuStrat recorded an index reading of 151.1 points, up 2.1% quarter on quarter and 17.8% year on year; the quarterly increase was its slowest pace in two years.

Off-plan sales remained dominant in the second quarter as well, accounting for 84% of residential sales volume, while transactions of completed homes fell 28.3% year on year, according to ValuStrat. In the first half of 2026, about 3,400 residential units were completed, equivalent to 18.8% of the 18,339 units expected to be completed during the year. Data cited by Reuters from a Cushman & Wakefield Core report showed residential launches rose from 7,019 units across 29 projects in the first half of 2025 to 13,073 units across 43 projects in the first half of 2026. The company’s head of research said Abu Dhabi’s growth had relied heavily on government-backed developers, adding that they had “redirected their products toward end-user and premium mid-market demand” amid regional uncertainty.

Projections for future supply provide another indication of the number of units that could enter the market in the coming years. The Abu Dhabi Real Estate Centre estimated the residential supply at about 409,000 units, with 71,000 units expected to be added by 2030 and deliveries projected to peak in 2028. Savills, in turn, estimated residential additions at about 68,000 units by 2030, with new supply concentrated on Saadiyat Island, Al Reem Island and Yas Island. The two entities’ estimates differ on the scale of expected additions, while both point to new units continuing to enter the market through the end of the decade. Future delivery figures remain projections in the two reports, not units already delivered.