Abu Dhabi property hits record Dh66 billion as investor demand surges

Dubai: Abu Dhabi’s property market opened 2026 with its strongest quarter on record, with transactions reaching Dh66 billion, up 160.7% from a year earlier.

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A total of 13,518 deals were recorded in the first three months of the year, compared to Dh25.31 billion across 6,896 transactions in the same period of 2025, according to the Abu Dhabi Real Estate Centre.

The surge was led by sales and purchases, which climbed to Dh50.97 billion, marking a 228.6% increase in value alongside a sharp rise in transaction volumes. Mortgage activity also expanded, reaching Dh15.03 billion, up 53.4% year-on-year.

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Key locations drive activity

Activity remained concentrated in prime investment zones.

Hudayriyat Island led the market with Dh11.97 billion in transactions, followed by Reem Island at Dh9.45 billion and Saadiyat Island at Dh8.8 billion. Yas Island also saw strong demand, recording more than Dh5.5 billion in deals.

The concentration of activity across these locations points to sustained investor interest in established and emerging lifestyle destinations.

Investor confidence lifts market

The scale of growth reflects a market that continues to attract both local and international capital.

Rashed Al Omaira, Director General of ADREC, said the performance highlights sustained confidence in the emirate’s real estate sector.

“This quarter’s performance is a clear reflection of the confidence Abu Dhabi continues to earn from investors both locally and internationally. Reaching a record level of activity is not only a sign of demand, it signals a market that is becoming more disciplined, with a clear focus on long-term investment.”

He added that regulatory oversight remains central to sustaining that momentum.

“Our role as ADREC is to ensure this growth is supported through consistent oversight and a regulatory framework that upholds trust and accountability across the sector.”

Foreign investment accelerates

Foreign capital played a major role in the quarter’s performance.

Foreign direct investment rose 423% to Dh8.27 billion, matching the total recorded across the whole of 2025. Investors from 99 nationalities participated in the market, up from 68 a year earlier.

Investment zones accounted for the bulk of activity, with foreign investment exceeding Dh36.4 billion out of a total Dh43.59 billion, reflecting a 242% increase.

Supply expands but demand stays ahead

Demand continues to run ahead of supply, even as development activity accelerates.

Sixteen new projects were registered during the quarter, marking a 60% increase compared to last year. Residential supply is projected to rise by more than 10,000 units in 2026, with further expansion expected into 2027.

Leasing activity also remains firm, with repeat lease prices up 16% year-on-year in March, pointing to sustained demand from both end users and investors.