Abu Dhabi residential prices continued to rise in the first half of the year as demand for property remained strong in the emirate despite uncertainty driven by the Iran war.
Apartment prices in key districts of the emirate rose in the year to June, increasing nearly 18 per cent in Yas Island and Al Reem Island, a Knight Frank report said on Wednesday.
Al Saadiyat Island remained the emirate's premium market, with average apartment transaction prices reaching about Dh43,100 ($11,735.85) per square metre, an annual increase of 21 per cent.
Faisal Durrani, partner and head of research for Mena at Knight Frank, said: “Despite the geopolitical challenges posed by the ongoing regional conflict, Abu Dhabi's residential market continues to be supported by robust domestic demand, with prime waterfront communities such as Al Saadiyat and Yas Island leading the emirate's price growth.
“The breadth of price appreciation across both apartments and villas reflects this. Aiding this positive momentum, of course, is the emirate’s relative affordability when compared to Dubai, with prices on average 10 per cent lower.”
Villa prices also rose across the emirate except in Reem Island, where prices declined by 22 per cent on an annual basis. Al Jubail Island recorded the strongest annual price growth of about 40 per cent, while Al Saadiyat Island remained the most expensive villa location in Abu Dhabi, with average transaction values of Dh26,500 per square metres in the year to June.
The latest data come as the UAE property market, which was booming at the start of the year, has largely weathered major fallout from the war with Iran.
A range of government measures, including expansion of golden visa initiatives, and visas for freelancers and retirees, has been supporting the market.
In the first half of 2026, Abu Dhabi's total real estate transactions surged 112 per cent year-on-year to hit Dh117 billion, underpinned by strong foreign direct investment, with transaction volumes rising 61.7 per cent to 16,838, latest data from Abu Dhabi Real Estate Centre show.
Future supply
Abu Dhabi's residential pipeline for 2026-2030 stands at about 36,900 units under construction, with apartments accounting for 66 per cent and villas accounting for 33 per cent, while serviced apartments represent a marginal share of only 1 per cent, according to Knight Frank’s analysis.
Nearly 70 per cent of the apartment pipeline is scheduled for completion in 2026 and 2027, although Knight Frank has warned of possible delays due to rising costs of raw construction materials, alongside increasing shipping insurance premiums.
Yas Island dominates the community-level pipeline with about 7,700 units under construction, followed by Fahid Island (3,550 units) and Saadiyat Island (3,250 units).
Fahid Island project, with a gross development value of more than Dh40 billion, was unveiled by Aldar Properties last year. More than 6,000 luxury residences are planned for the island, ranging from apartments and townhouses to ultra-luxury villas.
Aldar also unveiled Marsa Al Saadiyat, a Dh100 billion waterfront development in Saadiyat Island on Wednesday.
