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Abu Dhabi real estate boom continues as deals reach $18 billion

This marks a 160.7% increase across 13,518 deals, compared with $6.8bn from 6,896 transactions in the same period of 2025.

Abu Dhabi real estate boom continues as deals reach $18 billion
[Source photo: Krishna Prasad/Fast Company Middle East]

Abu Dhabi’s real estate sector recorded strong growth in the first quarter of 2026, with total transaction value rising to $18 billion, marking a 160.7% increase across 13,518 deals, compared with $6.8 billion from 6,896 transactions in the same period of 2025, according to the Abu Dhabi Real Estate Center.

Sales and purchases totaled approximately $13.9 billion across 8,940 transactions, reflecting a 228.6% increase in value and a 134% rise in volume year on year. Mortgage activity reached around $4.1 billion across 4,578 transactions, up 53.4% in value and 48.8% in volume.

In terms of location, Hudayriyat Island led transaction activity with about $3.26 billion in deals, followed by Al Reem Island at $2.57 billion and Saadiyat Island at $2.4 billion. Yas Island also recorded more than $1.5 billion in transactions.

Rashed Al Omaira said the performance reflects sustained investor confidence, supported by a maturing market that is increasingly focused on long term investment fundamentals. He added that regulatory oversight remains critical to maintaining transparency and stability across the sector.

Market indicators point to continued demand, with leasing activity maintaining momentum into March. The repeat lease price index rose 16% year on year, highlighting strong interest from both end users and investors.

While demand continues to outpace supply, the development pipeline is expanding. A total of 16 new real estate projects were registered during the quarter, up 60% from a year earlier. Residential stock is expected to grow by 10,272 units in 2026 to reach 325,248 units, before rising further to 333,564 units in 2027.

Foreign direct investment also recorded significant growth, with individual investments reaching approximately $2.25 billion, a 423% increase compared with the first quarter of 2025. Investors from 99 nationalities participated, up from 68 a year earlier.

Foreign investment remained concentrated in designated zones, accounting for around 84% of total investment value, equivalent to more than $9.9 billion out of $11.9 billion. This represents a 242% year-on-year increase, with key inflows originating from the United Kingdom, India, Russia, China, Jordan, France, and Egypt.

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