Abu Dhabi’s residential real estate sector delivered its strongest first quarter on record between January and March this year, with AED38.1 billion ($10.4 billion) worth of sales across 8,100 transactions, according to leading real estate advisory and property consultancy Cavendish Maxwell.

Total sales values surged more than 211% compared to Q1 last year, with the number of transactions climbing nearly 124%, stated Cavendish Maxwell in its latest analysis of the UAE capital’s residential property market.

The company added that figures for March 2026 – around 2,500 sales, up 127% against March last year – reflect purchases before and during heightened geopolitical tensions. Data released in the coming months will give a more accurate indication of demand.

Cavendish Maxwell’s insight shows that Abu Dhabi’s off-plan sector continues to dominate demand for residential property, with 184% year-on-year growth. 

Off-plan units accounted for around 90% of sales values and over 80% of homes purchased during Q1 2026. The ready market also expanded, with transactions up nearly 15% to 1,500 sales during the quarter.

Andrew Laver, Head of Abu Dhabi, Cavendish Maxwell, said: "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."

"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 stated.

Abu Dhabi’s off-plan sector robust

Laver pointed out that 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," he added.

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

Another 13,500 are in the pipeline for the rest of the year, with 16,700 expected in 2027 and 25,000 in 2028, when total inventory is set to reach 373,100, said the property expert.

Apartment prices appreciated more than 17% on average, with units at Yas Islands commanding almost 20% growth compared to the same period last year. The cost of villas increased almost 11% on average, it stated.

Rents climbed an average 10.5% year-on-year – and by nearly 20% at Yas Island, while villa rents were up nearly 4.5%

Apartments dominated the sales market, accounting for more than 70% of activity with Al Reem Island emerging the top location with just under 2,000 transactions. Al Hudayriyat Island was the number 1 location for sales of villas and townhouses, it added.

Yas Island races ahead on sales, rental increases

Apartment prices were up just over 17% on average, with the biggest rises at Yas Island (almost 20%) and Al Reem Island (19%). Al Raha Beach and Al Reef saw gains of 17.7% and 15.4% respectively. 

Meanwhile, villas cost around 11% more compared to Q1 last year, with Yas Island again recording the strongest growth, at more than 15%. Saadiyat Island commanded at 12.2% increase.

Yas Island also secured the biggest rental increases for apartments: up nearly 20% compared to the Abu Dhabi average of 10.5%. There was also strong rental rate growth at Al Reem Island and Al Reef. Villa rents were up 4.4%, with Al Reef seeing the largest growth in annual rental fees.

Apartments dominate Abu Dhabi property scene

Apartments accounted for 7 in 10 Abu Dhabi property sales, with around 5,700 transactions during Q1 – a rise of 130% on the same period last year, and 25% up on Q4 2025. Growth was driven by the off-plan segment, with apartments also accounting for most new launches.

There were also 2,400 villa and townhouse sales in Q1, more than double the number in Q1 last year.

Al Reem Island retained the number 1 spot for apartment sales, with just under 2,000 transactions – an increase of 224% against Q1 last year. Yas Island was in second place with 1,545 sales, followed by Al Saadiyat Island (720), Khalifa City (339) and Fahid Island (272), said the property expert.

Top of the charts for villa and townhouse sales by a huge margin was Al Hudayriyat Island, with 1,067 transactions – almost double the combined sales of the next four strongest performing areas: Ramhan Island (173), Ghantout (143), Al Shamkhah (129) and Zayed City (126), it added.-TradeArabia News Service