Abu Dhabi homes continued their strong upward trend during the second quarter of 2026 as the emirate’s property market recorded another period of steady growth. Apartment prices led the market, while off-plan sales reached record levels. At the same time, demand for offices and industrial space remained strong, reflecting confidence across the real estate sector.
Residential property values increased 17.8% compared with the same period last year. Apartments recorded the strongest performance, with prices climbing 24.1% annually. Villas also gained value, although they posted a more moderate pace of growth. The residential price index reached 151.1 points during the quarter, rising 2.1% from the previous three months. However, quarterly growth slowed, suggesting the market has entered a steadier phase after rapid gains.
Analysts said Abu Dhabi continues to attract end-users because home prices remain relatively accessible. As a result, demand stayed healthy throughout the quarter. Apartment prices increased 2.9% from the previous quarter, while villa prices rose 1.3%. On an annual basis, villa values climbed 12%.
Among the residential communities, Al Reef delivered the strongest apartment price growth. Values there surged 41.6% compared with a year earlier. Al Muneera Island followed with a 24.7% increase, while Al Reem Island recorded a 22% rise. Al Bandar posted annual growth of 21.8%, and apartment prices on Saadiyat Island increased 18.3%.
The villa market also delivered positive results. Al Reef again led the sector after villa prices climbed 27.9% year-on-year. Saadiyat Island followed with a 12% increase, while Al Raha recorded annual growth of 4.6%.
Rental prices remained stable overall, although they continued to edge higher than last year. Residential rents increased 4.7% annually, while average asking rents reached around Dh163,700. Apartment rents averaged approximately Dh122,500 each year, whereas villa rents stood near Dh260,000 annually.
Studios posted the strongest rental growth among apartments after rents increased 13.8%. One-bedroom apartments followed with a 7.7% rise. Meanwhile, four-bedroom villas recorded the strongest rental growth in the villa segment with a 7.2% increase.
Abu Dhabi homes also benefited from exceptional activity in the off-plan market. Developers completed 6,061 off-plan transactions during the second quarter. These sales accounted for 84% of all residential transactions and represented a remarkable 156% increase from the previous year.
Off-plan properties averaged Dh2,104 per square foot, marking annual growth of 21.2%. However, prices slipped slightly from the previous quarter. The average off-plan transaction value reached Dh4.4 million, reflecting a 25.9% annual increase as developers continued focusing on premium residential projects.
The ready-home market recorded 1,145 transactions during the quarter, representing a 28.3% decline in sales volume from a year earlier. Despite lower activity, completed home prices increased 10.9% to an average of Dh1,442 per square foot. The average transaction value also climbed 18.8% to Dh2.8 million.
Across the residential market, total sales reached 7,206 transactions. Although transaction volume fell 8% from the previous quarter, the average sale value remained strong at Dh4.14 million.
The commercial property market also maintained solid momentum. Office rents climbed 27.3% compared with last year and increased 11.4% during the quarter. Occupancy across major business districts reached around 90%, highlighting continued demand for premium office space.
Office asking prices increased 16.3% year-on-year to an average of Dh2.7 million. At the same time, the median asking price reached Dh1,666 per square foot. A major expansion project on Al Maryah Island will add more than 16 million square feet of mixed-use space, supporting future commercial growth and expanding business capacity.
The industrial and logistics sector also remained resilient. Occupancy at Khalifa Economic Zones Abu Dhabi reached approximately 98%. Demand from manufacturers, e-commerce companies, pharmaceutical firms, and food businesses continued to exceed the supply of high-quality warehouse space.
Overall, Abu Dhabi homes continued to attract buyers, investors, and businesses during the second quarter. Strong residential demand, rising commercial activity, and ongoing development projects continue to support the emirate’s long-term real estate outlook.
