Housing prices increase by 17.8% in Abu Dhabi, while apartment prices jump by 24.1%.

Values of residential properties increased by 17.8% in Abu Dhabi on a year-on-year basis in Q2 2026, as the value of apartments increased by 24.1%, according to ValuStrat.

The ValuStrat Price Index for the freehold residential segment of the capital city came in at 151.1 points, recording a rise of 2.1% on the previous quarter. The rise seen in the quarter was the slowest in two years.

According to ValuStrat, Abu Dhabi was at an earlier stage of the real estate cycle as compared to Dubai because affordable prices were supporting buyer demand in Abu Dhabi.

Quarterly increases for apartments were 2.9%, and that of villas was 1.3% for the same period, but the annual increase was 12% for villa prices.

Al Reef Leads Increase in Prices

Al Reef recorded the highest annual appreciation among all apartment communities, registering an appreciation of 41.6%, according to ValuStrat.

Al Muneera Island came in second place with a growth of 24.7%, followed by 22% for Al Reem Island, and 21.8% for Al Bandar. Apartment prices on Saadiyat Island rose by 18.3%.

However, the Al Reef region contributed to the rise in villa prices with an annual increase of 27.9%, while Saadiyat Island and Al Raha witnessed a rise of 12% and 4.6%, respectively.

Annual residential rents rose by 4.7%. However, rents remained relatively steady throughout the quarter. The annual average asking rents in Abu Dhabi amounted to approximately Dh163,700.

The average annual asking rents for apartments amounted to Dh122,500, whereas those of villas were Dh260,000. Studio apartments recorded the highest yearly growth in apartment rentals at 13.8%, followed by one-bedroom properties at 7.7%. The four-bedroom villas showed the highest increase in rents within the villa category at 7.2%.

The off-plan property sales make up the majority of the transactions.

A total of 6,061 off-plan units were transacted in Abu Dhabi in the second quarter, accounting for 84% of total residential deals, marking a 156% increase compared to the same period last year.

Prices for off-plan units stood at Dh2,104 per square foot, recording a yearly growth rate of 21.2% but down 4% quarter-on-quarter.

Transaction values of off-plan properties averaged Dh4.4 million, marking an increase of 25.9% compared to last year, when developers remained focused on luxury real estate development.

Sales transactions in ready homes declined by 28.3% annually to 1,145 units sold. Nevertheless, the average price for ready homes appreciated by 10.9% to Dh1,442 per square foot.

Value per transaction in ready homes was Dh2.8 million, increasing by 18.8% at the end of every year.

In total residential sales transactions, the volume was 7,206, decreasing by 8% from the previous quarter, and the average value per transaction was Dh4.14 million.

Office Rents Soar 27.3%

The office market in Abu Dhabi was also vital because of continuous business operations and a shortage of quality office spaces.

Rent prices of offices in key commercial areas of the capital city were on average 27.3% higher than last year and 11.4% higher than the previous quarter. The occupancy rate of offices in central business districts stood at 90%.

Office asking prices increased by 16.3% compared to last year’s levels, with an average asking price of Dh2.7 million. The median asking price for office spaces was Dh1,666 per square foot.

Mubadala Investment Company and Aldar Properties have announced that they would be investing Dh60 billion in the development of Al Maryah Island, where there will be an addition of over 16 million square feet of mixed-use facilities.

Industrial and logistics were also among the sectors that experienced strong performance due to 98 per cent occupancy of Khalifa Economic Zones Abu Dhabi.

As ValuStrat puts it, there was more demand for Grade A warehouse and logistics space than was available, as manufacturing, e-commerce, pharmaceuticals, and food companies have increased their need for modern logistics.