Property prices in Yas Island and Al Reem apartments climb 18% amid a booming real estate market in Abu Dhabi

A report by Knight Frank found that waterfront communities remained among the top-performing residential sectors

The prices of apartments on the Yas and Al Reem Islands rose by about 18% during the last year because the residential property market in Abu Dhabi is witnessing healthy growth, although the commercial property market is slowing down.

According to the latest research by the Knight Frank property consultancy firm, waterfront residential communities continued to be among the best-performing in the period from July 2025 to June 2026, although the number of office leases fell by 13% in the first half of the year.

Prices for average apartments in Yas Island and Al Reem Island increased by about 18% annually. Average prices in Al Saadiyat Island were still the highest within the Abu Dhabi apartment market at Dh43,100 per sqm. This price increased by 21% annually.

40% Annual Price Growth

In the villa category, prices on Al Jubail Island increased the most, by about 40%. On the other hand, Al Saadiyat Island remained the most expensive place to buy villas in the emirate, with prices of about Dh26,500 per square metre.

According to Knight Frank, there are 36,900 homes planned for construction in Abu Dhabi between 2026 and 2030, with the majority (two-thirds) of them being apartments. About 70% of the newly available apartment units will be completed in 2026 and 2027, but delays may occur due to increased construction and shipping insurance costs.

Yas Island contributes the most significant share of new residential supply at about 7,700 units, while Fahid Island has 3,550 units, and Saadiyat Island has 3,250 units.

Office Leasing Transactions Decrease

Despite the robustness of the residential market, there was an initial indication of a decline in the office segment.

The number of office leasing deals reached 23,616 in the first six months of 2026, which is a drop of 13% from the same period in the previous year. This decline was seen in most areas, except for Al Reem Island, where leasing rose by over 148%.

Knight Frank estimates that 428,000 square metres of additional office space will be released to the market from 2026 to 2028, with the majority of the supply coming to the market in the next two years. According to Knight Frank, the additional supply may increase the vacancy rates amid weak leasing demand.

“The continued political tensions associated with the regional conflicts notwithstanding, Abu Dhabi’s residential market is still being underpinned by strong domestic demand, with the prime waterfront enclaves of Al Saadiyat and Yas Island driving value gains in the emirate,” noted Faisal Durrani, partner and head of research, MENA, at Knight Frank.

“Given that there are almost 37,000 homes on tap until 2030, supply is starting to keep pace with several years of demand. However, the fact that most of the units will be located in a few master-planned neighbourhoods means that homes located in prime areas such as Al Saadiyat and Yas Island will still be premium properties,” commented Shehzad Jamal, partner, real estate consultancy, MENA.

“The prospects for the office market in Abu Dhabi are entirely positive. The occupancy rate is currently standing at about 98%, with rents having increased on an annual basis, and with only about 166,000 sqm of supply expected in 2026, Grade A office space will be scarce,” said James Hodgets, partner, occupier strategy and solutions, MEA.