Abu Dhabi’s residential property market delivered strong growth in the first quarter of 2026, with new project launches helping transaction volumes more than double year-on-year.
According to JLL’s latest Real Estate Market Dynamics Q1 2026 report, demand remained resilient despite regional tensions that weighed on market sentiment across the UAE. Moreover, the launch of new developments continued to support buyer activity throughout the quarter.
While transaction activity declined by 11.8% in March, overall first-quarter performance remained robust. As a result, the capital maintained positive momentum in its residential sector.
Tenant demand remains resilient
The report also highlighted shifting trends in the rental market. Although total rental registrations fell 8.4%, new lease contracts increased by 13.4%.
This trend suggests that many tenants chose to relocate in search of more favourable rental terms rather than leave the market altogether. Consequently, leasing activity remained relatively healthy despite broader market adjustments.
Supply pipeline remains strong
Looking ahead, Abu Dhabi and Dubai are expected to receive approximately 59,000 new residential units during the remainder of 2026. Additionally, around 92,000 units are forecast for delivery in 2027, although supply chain challenges could affect completion timelines.
Taimur Khan, Head of Research, MEA, at JLL, said: “The first quarter presented a clear divergence in the UAE’s real estate market, with sharp challenges for hospitality and resilience in the living, industrial and logistics sectors.
“While government incentives and agile strategies are easing the pressure in the short-term, strong market fundamentals and investor confidence position the wider economy for continued stability and a firm rebound as conditions normalise. This transition phase is a period of strategic adjustment, not a structural decline.”
