Abu Dhabi’s real estate market demonstrated significant strength in the first half of 2026, with total residential sales reaching an impressive Dh70.4 billion. This robust performance was significantly propelled by Hudayriyat Island, which alone accounted for $5.2 billion, representing approximately 27 per cent of the emirate’s total residential sales. Off-plan projects were a dominant force, comprising nearly 90 per cent of all residential unit transactions during this period.
The broader UAE property sector cemented its position as the world’s leading real estate investment destination, reflecting sustained resilience amidst global and regional challenges. This momentum was highlighted in a June report by a leading developer’s UAE Property Investment Index. In July, to further support market stability, the Abu Dhabi Real Estate Centre (ADREC) announced a freeze on rent increases for residential, commercial, and industrial properties. Exceptions apply to communities managed by Abu Dhabi Global Market (ADGM), including prominent areas such as Al Maryah Island and Reem Island.
Residential supply in Abu Dhabi experienced a growth of nearly 3 per cent year-on-year, bringing the total to approximately 409,000 units. Investment zones contributed substantially to this supply, accounting for 22 per cent or 72,000 housing units. Reem Island led the development with about 27,500 units, followed by significant contributions from Al Raha Island, Yas Island, and Saadiyat Island. Looking ahead, an additional 71,000 units are projected to enter the market by 2030, with delivery volumes anticipated to peak in 2028.
The positive trend extended across the UAE, underscoring collective market strength. Dubai’s completed real estate investments surged by 52 per cent year-on-year, reaching Dh111 billion in the first half of 2026 across 104 developments. In Ras Al Khaimah, where the residential sector recorded Dh12.3 billion in total sales last year, hotel occupancy rates reached nearly 50 per cent in the first half of the year, according to consultancy JLL.
Regulatory initiatives in Abu Dhabi continue to foster growth. ADREC approved eight new investment zones in the first half of 2026, expanding the total to 50. The regulator also registered 28 new real estate developments, marking a 16 per cent increase from the previous year, creating additional opportunities for local and international investors. Furthermore, Abu Dhabi’s hospitality sector demonstrated exceptional performance, recording the highest occupancy rates in the UAE during the first half of the year, at an estimated 66.8 per cent, maintaining a steady 65.2 per cent in June, as reported by consultancy JLL.
