Abu Dhabi’s residential market maintained strong momentum in Q1 2026, with transaction volumes remaining elevated and broadly in line with recent activity levels. This performance continues to be supported by strong underlying fundamentals, including population growth, a resilient economy, and the emirate’s long-term strategic positioning.
Transaction volumes in Abu Dhabi City exceeded 7,200 in Q1 2026, marking the second strongest quarterly performance on record, marginally below the peak observed in Q4 2025. This reflects continued momentum from previous quarters, with volumes rising from approximately 3,400 in Q1 2025.
Activity was strong in January and February, with March providing a clearer indication of current market dynamics. Transaction volumes in March declined by 16% month-on-month, reflecting a shift towards more measured activity. This was influenced by regional geopolitical tensions, Ramadan, Eid al-Fitr, and seasonal factors such as school holidays.
The off-plan segment continued to dominate market activity, accounting for 81% of total transactions in Q1 2026. Apartments remained the primary driver, with over 5,200 apartment sales recorded, representing 73% of all transactions.
A notable shift was observed within the off-plan segment, with resale off-plan transactions increasing from 4% to 15%, indicating increased investor-led activity.
Strong demand and quality launches have driven pricing growth across the market. Off-plan average sales rates increased by 39% quarter-on-quarter to AED 23,067 per sq m, while the ready market recorded a more modest increase of 2.66% to AED 15,480 per sq m.
From a behavioural perspective, market participants are adopting a more cautious and measured approach, with selective renegotiations observed particularly within the secondary market.
Despite near-term uncertainty, developer activity remains strong, with around 20 projects launched in 2026, offering approximately 4,000 units, the majority of which are apartments.
While demand and pricing remain above early-2025 levels, the market is entering a wait-and-see phase, with trends being closely monitored in the coming months. Looking ahead, supply constraints, limited handovers, and continued economic growth are expected to sustain demand.
For detailed insights into Abu Dhabi’s residential market, download the full report now.