Abu Dhabi’s residential market delivered one of its strongest quarters on record in Q1 2026, underscoring sustained demand despite regional geopolitical headwinds and seasonal slowdowns, according to a new report by Savills.
Transaction volumes in Abu Dhabi City crossed 7,200 during the quarter, marking the second-highest level ever recorded and only marginally below the peak of over 7,600 transactions seen in Q4 2025. The strong start to the year was driven largely by robust activity in January and February, though momentum eased in March amid external disruptions and seasonal factors.
The escalation of regional geopolitical tensions towards the end of February, along with Ramadan, Eid Al-Fitr, and school holidays, contributed to a more measured pace of transactions in March. Market activity was further impacted by temporary disruptions, including airspace restrictions and a shift towards remote working.
Despite the moderation, the market’s underlying strength remained evident, particularly in the off-plan segment, which continued to dominate transaction activity. Off-plan sales accounted for 81 percent of total transactions in Q1, up from 80 percent in the previous quarter, reflecting sustained investor appetite for new launches.
High-profile project launches played a key role in driving demand. Manchester City Yas Residences by Ohana Development alone generated AED 6 billion in sales within 72 hours, highlighting strong absorption levels for premium developments.
Apartments continued to lead market activity, with a record 5,200 transactions recorded during the quarter, accounting for 73 percent of total sales. This marks the third consecutive quarter in which apartment volumes exceeded 4,000 units, signaling a clear shift in buyer preference towards this segment.
The quarter also saw a notable rise in resale activity within the off-plan segment, with reassignment transactions increasing from 4 percent to 15 percent of total activity, indicating growing participation from investors seeking to capitalize on price appreciation.
Price growth remained strong across the market. Average off-plan sales rates surged 39 percent quarter-on-quarter to AED 23,067 per square meter, while the ready market recorded a more modest 2.66 percent increase, reaching AED 15,480 per square meter. Capital values continued to rise across key residential districts for both villas and apartments.
Ali Ishaq, Head of Residential Agency Abu Dhabi at Savills Middle East, said, “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 sustained demand depth 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 firm during the quarter, with around 20 new projects launched, adding approximately 4,000 units to the market. Apartments accounted for nearly 80 percent of new supply, reinforcing their dominance in current development pipelines.
Key launches and completions continued to shape the market landscape. Modon Properties moved ahead with the launch of Tara Park on Al Reem Island, while projects such as Fay Al Reeman Phase 2 and The Gate Residence in Masdar City were delivered during the quarter.
While near-term activity may remain under pressure as the market adjusts to external uncertainties, the broader outlook for Abu Dhabi’s residential sector remains positive. Structural drivers such as the expansion of Abu Dhabi Global Market, new cultural developments on Saadiyat Island, and major projects, including Disneyland Abu Dhabi, are expected to support long-term demand and attract further investment in the emirate.
With strong fundamentals, sustained investor interest, and continued infrastructure investment, Abu Dhabi’s residential market appears well-positioned to maintain its growth trajectory, even as it transitions into a more balanced phase.
