Abu Dhabi Residential Market Records Second Strongest Quarter on Record Despite Regional HeadwindsSavills Q1 2026 report highlights near-record transaction volumes, off-plan dominance, and continued price growth as market enters a more measured phase
Abu Dhabi’s residential market delivered its second strongest quarter on record in Q1 2026, with transaction volumes in Abu Dhabi City exceeding 7,200, marginally below the all-time peak of over 7,600 recorded in Q4 2025, according to the latest Market in Minutes report from Savills.
Activity levels in January and February remained strong, carrying forward the momentum of 2025. However, March reflected a more measured tone, influenced by the escalation of regional geopolitical tensions from 28 February, which led to airspace disruptions, amended school schedules and increased remote working. Seasonal factors, including Ramadan, Eid Al-Fitr and an early start to the school spring break, also contributed to a moderation in activity during the month.
Off-plan sales maintained their dominance in Q1 2026, accounting for 81% of all transactions, up from 80% in Q4 2025. Demand was underpinned by high-profile launches, with Manchester City Yas Residences by Ohana Development generating AED 6 billion in sales within 72 hours. A record 5,200 apartment transactions were recorded in the quarter, accounting for 73% of all sales, up from 67% in 2025, and marking the third consecutive quarter with apartment volumes above 4,000.
March also highlighted a shift in off-plan transaction composition from the primary segment, with resale off-plan transactions rising from 4% to 15% of total activity, indicating growing investor-led activity and reassignment transactions.
Average sales rates across the Abu Dhabi market increased significantly, with off-plan rates rising 39% quarter-on-quarter from AED 16,540 per sq m at end-2025 to AED 23,067 per sq m in Q1 2026. The ready market also performed positively, with average rates rising 2.66% to AED 15,480 in Q1 2026 from AED 15,087 in Q4 2025. Capital values continued to rise across all key districts tracked by Savills for both villas and apartments.
Savills experts advise that these headline trends should be interpreted with caution, as transaction data, particularly in March, may reflect deals initiated in January and February, and may not yet fully capture current market conditions.
Ali Ishaq, Head of Residential Agency Abu Dhabi, Savills Middle East commented, “Abu Dhabi’s residential market has demonstrated remarkable resilience, delivering near-record transaction volumes in Q1 despite a complex backdrop of regional geopolitical developments and seasonal factors. The strength of January and February is clear, with March activity reflecting a confluence of external factors, including regional geopolitical developments, Ramadan and the school spring break. Transaction volumes in March declined by 16% month-on-month; however, monthly data may not fully capture underlying trends due to typical lags in registration and reporting. Overall, Q1 2026 accounted for 35% of full-year 2025 transaction volumes, underscoring the sustained depth of demand across the market.
What is particularly encouraging is that underlying demand fundamentals remain intact. The off-plan segment continues to attract strong interest, and we are seeing buyers from both within the UAE and internationally remain committed to Abu Dhabi’s long-term growth story. Supply constraints, limited near-term handovers, and the emirate’s continued investment in major infrastructure and cultural assets provide a compelling medium-term case for the market.
The coming quarters will be important in establishing the market’s direction, but for those with a long-term perspective, the Abu Dhabi story remains a strong one.”
Developer confidence remained evident in Q1, with approximately 20 projects offering around 4,000 units launched, 80% of which were apartments, compared to 3,400 units launched in Q4 2025. Modon Properties proceeded with the launch of Tara Park on Al Reem Island in March, demonstrating resilience despite prevailing uncertainty. Key completions in the quarter included Fay Al Reeman Phase 2 and The Gate Residence in Masdar City.
While near-term transaction activity is expected to remain under some pressure as the market absorbs the impact of external developments, Abu Dhabi’s long-term fundamentals remain supportive. The emirate’s broader growth story, underpinned by ADGM’s expansion, new cultural attractions on Saadiyat Island, and the opening of Disneyland Abu Dhabi, is expected to continue driving wealth migration and prime market demand over the medium term.
Here’s a link to the full report: Abu Dhabi Residential Q1 2026 Report
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About Savills Middle East:
Savills plc is a global real estate services provider listed on the London Stock Exchange. With a presence in the Middle East for over 40 years, Savills offers an extensive range of specialist advisory, management and transactional services across the United Arab Emirates, Oman, Bahrain, Egypt, and Saudi Arabia. Expertise includes property management, residential and commercial agency services, property and business assets valuation, and investment and development advisory. Originally founded in the UK in 1855, Savills has an international network of over 700 offices and associates employing over 40,000 people across the Americas, UK, Europe, Asia Pacific, Africa, and the Middle East.
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