October 22, 2026

Abu Dhabi Residential Sales Reach AED 21.5 Billion in Q3 2026

Abu Dhabi’s residential property market recorded AED 21.5 billion in sales across 6,085 transactions during the third quarter of 2026, representing a 32% increase in sales value compared with the same period last year. According to a report by Savills Middle East, the growth was supported by higher-value purchases, particularly in the off-plan and luxury segments, alongside continued interest from domestic and international buyers. 

Key Insights:

Off-Plan and Luxury Properties Drive Sales Activity

Off-plan properties accounted for 81% of residential transactions during Q3 2026, with an average transaction value of AED 5 million, up 15% quarter over quarter and 40% year over year. By comparison, ready properties recorded an average transaction value of AED 2.8 million.

The luxury segment also recorded substantial growth, with 582 transactions exceeding AED 10 million during the quarter. This represented an increase of 35% compared with Q2 and 104% year over year, with off-plan properties accounting for 95% of these high-value purchases.

While total residential sales value increased, the number of transactions was 19% lower than the previous quarter and 7% below Q3 2025. The figures reflect a shift toward higher-value purchases, with luxury and off-plan properties contributing significantly to overall market activity. 

Residential Prices and Rental Activity Increase

Residential property prices continued to record annual growth during Q3 2026. Average apartment prices reached AED 22,700 per square meter, up 9% year over year, while villas and townhouses averaged AED 18,200 per square meter, an increase of 8%.

Rental activity also increased, with 50,500 transactions recorded during the quarter, up 29% from Q2. Lease renewals accounted for 68% of rental transactions, indicating that much of the increase was driven by existing tenants renewing their agreements.

International buyers remained an important part of the market. Foreign purchasers, including expatriate residents and non-resident investors, accounted for 70% of residential sales value during the first half of 2026, compared with 64% during the same period in 2024. 

New Residential Supply Expected Through 2030

Abu Dhabi is expected to add approximately 68,000 residential units by 2030, with much of the planned supply concentrated in Saadiyat Island, Al Reem Island, Yas Island and Zayed City.

According to Savills Middle East, demand is expected to remain supported by continued infrastructure investment, economic fundamentals and growing interest in luxury residential developments.

As new projects enter the market, the pace of delivery and its relationship with buyer demand will be important factors influencing residential market performance in the coming years. 

Abu Dhabi's Residential Market Outlook

Abu Dhabi’s residential market recorded strong growth in sales value during Q3 2026, supported by higher-value transactions and continued activity in the off-plan and luxury segments.

With annual residential price growth, increased rental activity and substantial new development planned, the market’s future performance will be shaped by evolving buyer demand and the delivery of new residential supply. 

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