Abu Dhabi home sales hit record Dh38.1 billion in Q1 2026

Dubai: Abu Dhabi’s residential property market recorded its strongest first quarter on record, with Dh38.1 billion worth of sales across 8,100 transactions between January and March, according to Cavendish Maxwell.

The total value of home sales rose more than 211% compared with the first quarter of last year, while transaction volumes climbed nearly 124%.

The figures point to continued demand in the UAE capital’s housing market after a strong 2025, although Cavendish Maxwell said coming months will provide a clearer picture of how geopolitical tensions may affect buyer sentiment.

Off-plan sales drive growth

Off-plan homes continued to dominate activity in Abu Dhabi, with sales growing 184% year on year.

The segment accounted for around 90% of total sales value and more than 80% of homes purchased during the quarter. The ready market also expanded, with transactions rising nearly 15% to 1,500 sales.

“After a record-breaking annual performance in 2025, Abu Dhabi’s residential market opened 2026 with equal momentum, with the best Q1 performance for both transaction volumes and values since records began," said Andrew Laver, Head of Abu Dhabi at Cavendish Maxwell. "However, it is important to remember that it takes several weeks for sales data to be reflected in official figures. Q1 statistics indicate sustained strong market fundamentals, but the coming quarters will be crucial in assessing any impact of geopolitical developments on real estate demand.”

He added: “Abu Dhabi’s off-plan sector continues to go from strength to strength, with 6,600 sales in Q1, supported by new project launches and robust demand from domestic and international investors. March alone saw 2,100 off-plan sales – up 208% on March 2025 – despite the month coinciding with Ramadan and Eid, when, historically, market activity slows.”

Yas Island leads price gains

Apartment prices in Abu Dhabi rose more than 17% on average in the first quarter, while villa prices increased almost 11%.

Yas Island recorded the strongest growth, with apartment prices up almost 20% and villa prices rising more than 15% from a year earlier. Al Reem Island also posted strong apartment price growth of 19%, while Al Raha Beach and Al Reef recorded gains of 17.7% and 15.4% respectively.

Rents also moved higher, with apartment rents climbing an average of 10.5% year on year. Yas Island again led the market, with apartment rents up nearly 20% compared with the same period last year.

Villa rents increased 4.4% on average, with Al Reef recording the strongest rise in annual rental values.

More homes in the pipeline

Apartments made up more than 70% of sales activity during the quarter. Al Reem Island was the most active location for apartment sales, with just under 2,000 transactions, while Al Hudayriyat Island led sales of villas and townhouses.

Around 2,400 new residential units were delivered in Abu Dhabi in the first three months of the year, taking total housing stock to 320,300 homes.

Another 13,500 homes are expected to be delivered during the rest of 2026, followed by 16,700 in 2027 and 25,000 in 2028. Cavendish Maxwell said total inventory is expected to reach 373,100 homes by 2028.