Abu Dhabi Property Transactions More Than Double In Q1 2026 Despite Regional Conflict

2026-04-07 11:16:53

(MENAFN- Khaleej Times) Abu Dhabi's property market delivered a strong performance in the first quarter of 2026, with both transaction value and volume doubling year-on-year.

The number of foreign direct investment (FDI) inflows also surged, despite regional military conflict breaking out on February 28.

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The Abu Dhabi Real Estate Centre (Adrec) data showed capital's property market recorded Dh66 billion transactions compared to Dh25.31 billion in the same period last year, an increase of nearly 161 per cent.

The number of deals reached 13,518 during January-March 2026 period, compared to 6,896 transactions in the same period of 2025.

Market indicators continue to show strong and sustained demand across Abu Dhabi's real estate sector, with leasing activity maintaining growth into March. The repeat lease price index recorded a 16 per cent annual increase compared to March 2025, underscoring continued demand from end users and investors.

Demand outpaced supply

Adrec said demand continued to outpace supply in the capital city, as 16 new projects were registered during the quarter, a 60 per cent increase compared to the same period last year.

Residential supply in the Abu Dhabi region is projected to increase by 10,272 units in 2026, rising from 314,976 to 325,248, representing annual growth of 3.3 per cent. Supply is projected to grow further in 2027, reaching 333,564 units.

The report highlighted exceptional growth in foreign direct investment (FDI), with total investments by individuals reaching Dh8.27 billion, marking a 423 per cent increase compared to the Q1 2025 and equivalent to the total foreign direct investment recorded during 2025. Investors from 99 nationalities contributed to this performance, up from 68 nationalities during the same period last year.

Foreign investment activity remained strong within investment zones, accounting for approximately 84 per cent of total investment value, surpassing Dh36.4 billion out of a total Dh43.59 billion. This represents a 242 per cent increase compared to the same period last year, with key contributing markets including the UK, India, Russia, China, Jordan, France, and Egypt.

Top performing communities

Rashed Al Omaira, director-general of Adrec, said the first-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.

Sales and purchases totalled Dh50.97 billion through 8,940 transactions, an increase of 228.6 per cent in value and a 134 per cent rise in volume compared to the first quarter of 2025. Mortgage transactions reached Dh15.03 billion through 4,578 transactions, representing a 53.4 per cent increase in value and a 48.8 per cent rise in volume year-on-year.

Hudayriyat Island was the leading area for real estate transactions, recording deals amounting to approximately Dh11.97 billion, followed by Reem Island (Dh9.45 billion), and Saadiyat Island (Dh8.8 billion).