Abu Dhabi property prices continued climbing in the second quarter of 2026, although the market is no longer moving at quite the same speed seen earlier in the property cycle.
Residential values across the emirate’s freehold areas rose 17.8% compared with the same period last year, according to ValuStrat. Prices also increased 2.1% from the first quarter.
That pushed the ValuStrat Price Index for Abu Dhabi residential property to 151.1 points, based on a benchmark of 100 points in the first quarter of 2021.
The annual figure still looks strong. The quarterly number tells a slightly different story.
Growth during the three months to June was the slowest recorded in two years, suggesting the market may be settling into a more measured phase rather than continuing its earlier sprint.
Apartments Continue to Outperform Abu Dhabi Villas
Apartments remained the main engine of Abu Dhabi’s residential market during the quarter.
Al Reef recorded the sharpest annual increase among the apartment communities tracked by ValuStrat, with values rising 41.6%. Al Muneera Island followed with growth of 24.7%.
Apartment prices on Al Reem Island climbed 22%, while Al Bandar recorded a 21.8% increase. Saadiyat Island apartment values were up 18.3% from a year earlier.
Those are not small movements, especially in established communities where buyers already have a fairly clear idea of available supply, rental demand and expected service costs.
Villa growth was more restrained.
Al Reef villa prices increased 27.9% year-on-year, placing the community well ahead of several higher-priced villa districts. Saadiyat Island villas rose 12%, while values in Al Raha increased 4.6%.
The gap between apartments and villas reflects where much of the current buying activity is concentrated. Apartments generally offer a lower entry price, wider rental demand and more choice within Abu Dhabi’s major investment areas.
Price Growth Is Strong but Starting to Slow
A 17.8% annual rise would normally suggest a market accelerating at full speed. Yet Abu Dhabi’s quarter-on-quarter figures show that some of that momentum is cooling.
Residential values rose only 2.1% between the first and second quarters. That was the weakest quarterly gain for two years.
It does not point to a falling market. Prices are still moving upwards, and demand remains active. The figures do suggest buyers are becoming more selective as asking prices rise and more developments reach the market.
Abu Dhabi also recorded 1,396 residential unit completions during the second quarter, according to Cushman & Wakefield Core. A larger development pipeline could gradually give buyers more options and reduce some of the pressure that has pushed values higher.
Off-Plan Property Keeps Driving Sales
New developments remain central to Abu Dhabi’s property story.
Savills reported that off-plan homes accounted for 85% of residential transactions during the second quarter. That is a heavy concentration, even for a UAE market where payment plans and new launches regularly attract investors.
Separate market research placed off-plan property at 79% of transaction value during Q2, up from 54% in the same quarter of 2025.
Buyers are clearly willing to commit before completion, particularly when projects come from established developers and sit within recognised investment areas.
That demand also means headline transaction prices can shift depending on which developments launch during a quarter. A sudden rise or fall in median prices does not always mean that every existing apartment or villa has moved by the same amount.
The type, size and location of units being sold matter.
Residential Rents Hold Steady Under Temporary Cap
Residential rents were far calmer than sales prices during the quarter.
Abu Dhabi’s residential rental index reached 128.6 points. It was unchanged from the first quarter but still 4.7% higher compared with the previous year.
The temporary 0% rental cap introduced by the Abu Dhabi Government helped limit further increases and gave tenants some breathing room after a prolonged period of rising housing costs.
Leasing activity also eased with the summer season and the arrival of more housing choices.
That does not mean rental demand has disappeared. Occupancy remains supported by population growth, employment and the expansion of Abu Dhabi’s business districts. The market has simply become less frantic.
Abu Dhabi Office Rents Jump 27.3%
Commercial property moved in the opposite direction.
Average office asking rents surged 27.3% year-on-year as companies competed for a limited supply of high-quality workspace. Grade A offices remained particularly difficult to secure in the emirate’s major commercial locations.
The shortage is becoming a real constraint for businesses expanding in Abu Dhabi.
New companies entering the capital often want modern offices with strong transport access, recognised addresses and nearby services. There are only so many buildings that meet those requirements.
Landlords with premium space have responded accordingly.
The contrast is fairly sharp: residential rents were kept broadly stable, while office rents climbed by more than a quarter in a year.
What Rising Property Values Mean for Abu Dhabi Investors
Abu Dhabi’s property market still has momentum, but investors need to look beyond the 17.8% headline figure.
Apartment communities are producing stronger capital growth than many villa districts. Off-plan projects dominate transaction activity. Commercial rents are climbing quickly, yet residential rental growth has paused under the temporary cap.
Each part of the market is moving differently.
For investors connected to Abu Dhabi’s free zones and wider business ecosystem, rising property values also point to continued confidence in the emirate’s economic expansion. More companies, professionals and long-term residents mean greater demand for housing, offices and supporting commercial services.
The opportunities are there. So are higher entry prices.