Abu Dhabi closed 2025 with one of the strongest performances in its real estate history, consolidating its position as a core pillar of the UAE property market. The capital now accounts for approximately 10–12% of the UAE’s total real estate transaction value, a notable shift for a market that was previously viewed as conservative compared to Dubai. According to ADREC data, total real estate sales rose from $27 billion in 2024 to nearly $39 billion in 2025, while the number of transactions increased by 49%. Whitewill, the international luxury real estate agency, attributes this performance to a combination of long-term urban planning, controlled supply, and rising international confidence in Abu Dhabi as a stable investment destination.
Rental growth will outpace sales price growth
Abu Dhabi’s rental market continues to outperform expectations, underpinned by limited supply in prime districts and sustained demand from both residents and investors. The strongest rental performance was recorded on Reem, Yas, and Saadiyat Islands, where demand remains concentrated in high-quality residential stock. On these islands, studio rents increased by 24% and one-bedroom apartments by 20% year-on-year, reflecting tight availability and rising tenant demand.
Looking ahead to 2026, Whitewill forecasts rental growth of over 10% year-on-year for apartments, while villas and townhouses are expected to see growth of more than 5%. This dynamic positions Abu Dhabi as a rental-led market in the near term, with income returns continuing to drive investor interest.
2026 forecast: strong growth at a controlled pace
The outlook for 2026 points to continued expansion, albeit at a more measured and sustainable pace. Total transaction value is forecast to grow by more than 40% year-on-year, supported by a projected 30% increase in the number of transactions. Overall price dynamics are expected to grow by over 10%, while average sale prices are forecast to rise by around 5%. This balance reflects a market that is growing in depth and liquidity without showing signs of overheating, reinforcing Abu Dhabi’s appeal for medium- to long-term investors.
New supply will support market depth
The entry of new developers into Abu Dhabi in 2026 signals growing confidence in the emirate’s long-term demand fundamentals. Sobha and Ohana Development are set to launch large-scale master-planned communities adjacent to Yas Island, introducing a mix of apartments, townhouses, and villas supported by integrated infrastructure. In parallel, several Dubai-based developers are expanding into Abu Dhabi, further diversifying supply and reinforcing market maturity. Importantly, new launches are expected to be absorbed gradually, supporting pricing stability rather than diluting value.
Island districts will continue to outperform
Performance in Abu Dhabi remains highly concentrated in island locations, where infrastructure, lifestyle offerings, and proximity to employment hubs drive sustained demand. Expected returns in 2026 are forecast at 9–12% on Reem Island, 9–12% on Saadiyat Island, and 8–10% on Yas and Hudayriyat Islands. These districts benefit from a combination of limited land availability, strong tenant demand, and continued investment in cultural, leisure, and commercial assets, supporting both rental income and capital preservation.
International buyers are driving long-term demand
Abu Dhabi’s buyer profile is increasingly international and long-term in nature. European buyers are shifting from purely investment-driven purchases toward permanent residence, while demand from Russian-speaking and American buyers remains strong across both income-generating assets and owner-occupied homes. This diversified buyer base supports market resilience, liquidity, and consistent absorption across price segments. Compared to more transaction-driven markets, Abu Dhabi attracts investors prioritising stability, predictable returns, and long-term value.
As 2026 approaches, Abu Dhabi’s real estate market stands out for its combination of growth, discipline, and quality. For investors and end users seeking durable value in the UAE, early engagement remains critical, and understanding the right locations and product types will define outcomes in the next phase of the cycle.
