As per the Colliers’ UAE Real Estate Market Report for Q1 2026, the property sector in the Gulf country is undergoing a transition period as it moves beyond the exceptional momentum of 2025 toward a more measured, mature phase, supported by strong fundamentals and infrastructure investment.
“Abu Dhabi’s real estate market is evolving toward a more balanced and sustainable growth trajectory. On the supply side, the residential sector maintained a steady delivery rhythm in Q1 2026, with approximately 1,200 units added, while a further 7,000 units are scheduled for completion by year-end,” the report said.
“Development activity also reached record levels, with 22 new projects added to the pipeline, including nine branded residential schemes. In Q1 2026, the rental market transitioned toward a more measured environment, with citywide apartment averages rising 15% year-on-year, while mid-end developments exceeded 20%. The residential villa segment recorded a marginal 1% quarterly increase and 6% annual growth. Notable yearly gains of 7%-10% were sustained in high-quality communities on Yas Island, as well as in specific mid-quality developments such as Al Reef,” it added further.
Talking about the commercial real estate segment, the office market maintained strong performance, with occupancy levels exceeding 95%. Rents across all grades recorded annual growth of between 8% and 20%.
The primary office inventory was bolstered by the handover of Shams Tower on Al Reem Island, with the market currently monitoring the imminent completion of Masdar City Square and The Link, both of which are already capturing robust occupier interest.
As per the Colliers, the trend reflects a continuing appetite for sustainable Grade A workspace within the UAE capital’s core business districts.
“Residential transaction activity in Abu Dhabi continued to accelerate in Q1 2026, with approximately 7,800 deals recorded, reflecting a 10% increase quarter-on-quarter and a 119% surge year-on-year. Average apartment and villa sales prices recorded quarterly growth of 4% and 2% and annual increases of 32% and 21%, respectively,” the agency noted.
A similar trend was seen in Dubai as well, where the real estate market is moving beyond rapid growth into a more mature phase, well-positioned to weather short-term volatility (arising due to the Iran war) on the back of strong fundamentals and ongoing infrastructure investment.
On the supply side, new apartment deliveries exceeded the 10,000-unit threshold for the second consecutive month, while approximately 1,900 villas were delivered during Q1 2026.
“The development pipeline remains substantial, with an additional 65,000 apartments and 12,500 villas scheduled for delivery by year-end, although some deliveries are expected to extend into subsequent periods. During Q1 2026, the rental market demonstrated a robust overall performance, with quarter-on-quarter (Q-o-Q) metrics maintaining a generally positive trajectory,” Colliers’ UAE Real Estate Market Report remarked.
“Average apartment rents grew marginally by 2%, supported by sustained demand in the affordable housing segment. While average villa rates remained stable throughout the quarter, the market showed a more nuanced performance at the community level, with tenants adopting a more value-driven approach,” it noted.
Both the residential and commercial verticals maintained their growth trajectory throughout Q1 2026, though the period was characterised by a notable shift in sector-specific demand.
Off-plan transaction volumes, as per Colliers’, “remained intrinsically linked to the frequency of project launches and subsequent registration timelines”.