Abu Dhabi’s apartment and villa prices increased in the third quarter amid continued economic momentum in the UAE capital.
Apartment prices for three months to the end of September rose 24 per cent year-on-year, while villa prices grew 10.2 per cent, ValuStrat report found.
Al Reef outperformed other Abu Dhabi areas, with 36.6 per cent rise in apartment prices and 26.8 increase in villa values.
Apartments in Al Bandar rose 24.7 per cent, Al Muneera Island by 24.4 per cent and Al Reem Island 22 per cent.
In the villa sector, Al Reef was followed by Saadiyat Island with 9.9 per cent price growth and Hydra Village at 2.9 per cent.
Overall, residential values in Abu Dhabi rose 16.8 per cent on an annual basis during the quarter.
“Abu Dhabi's real estate market strengthened in third quarter of 2026, with accelerating residential capital growth and resilient commercial property fundamentals reinforcing the emirate's positive market trajectory,” Haider Tuaima, managing director and head of real estate research at ValuStrat, said.
“Residential appreciation gained pace, led by apartments, while sustained business activity and limited availability of quality office space continued to support commercial performance.”
Freehold homes in Abu Dhabi’s secondary market also recorded average annual capital gains of 16.8 per cent.
Economic momentum in Abu Dhabi continued despite uncertainty driven by the Iran war, with new economic licences increasing by 21 per cent year-on-year in the first quarter of 2026. ADGM assets under management rose by 54 per cent in first half of 2026, reflecting continued growth in business activity and investment.
About 50,000 professionals are now based in ADGM, an increase of 34 per cent on the first half of last year.
Apartment rents rose 1.5 per cent annually in the third quarter, with the average at Dh121,500 per year, while villa rents increased by 1.8 per cent at an average of Dh258,000, ValuStrat report said.
Rents remained stable on a quarterly basis, with Abu Dhabi introducing a temporary rent freeze across residential, commercial and industrial properties from June 2, replacing the 5 per cent cap on annual increases until further notice.
About 13,534 new homes are expected to enter the Abu Dhabi market this year, with 3,508 completed in the first nine months of 2026.
A further 40,510 homes are scheduled for delivery by 2030.
The new data comes even as UAE property market activity shows signs of slowing amid the geopolitical uncertainty.
Abu Dhabi’s residential property market was mixed in the third quarter, with transaction volumes falling 7 per cent annually to 6,085, while values rose 32 per cent to Dh21.5 billion, a Savills report found.
In Dubai, the volume and value of residential property transactions fell in the third quarter as buyers became “more cautious” amid regional events, Cavendish Maxwell said.
