UAE Property Market Cools In Q2 As Dubai, Abu Dhabi Home Prices And Rents Ease
In Dubai, average apartment and villa sale prices declined 3 per cent quarter-on-quarter, while apartment rents fell 4 per cent and villa rents dropped 2 per cent.
Recommended For YouStay up to date with the latest news. Follow KT on WhatsApp Channels.
Affordability is increasingly influencing where people choose to live, while Colliers said a continued shift from renting to homeownership and rising rental inventory are also moderating tenant demand.
Around 11,650 new homes were delivered in Dubai during Q2, including 9,200 apartments and 2,450 villas. Another 56,600 residential units are scheduled for completion by the end of 2026.
The Dubai Land Department has also introduced the Flexi Rent initiative, allowing participating landlords to offer monthly, quarterly and semi-annual rental payment plans.
Abu Dhabi prices ease but remain sharply higher than last year
Abu Dhabi experienced a similar quarterly adjustment.
Average apartment sale prices declined 3 per cent quarter-on-quarter, while villa prices eased 1 per cent.
However, compared with a year earlier, apartment prices remained 19 per cent higher, while villa prices were up 10 per cent.
Residential transaction volumes reached around 7,200 deals during Q2, down 8 per cent from the previous quarter but 83 per cent higher year-on-year. Off-plan properties accounted for around 84 per cent of transactions.
Abu Dhabi rents also eased after strong increases through 2025 and early 2026. Apartment rents declined 2 per cent from the previous quarter and villa rents fell 3 per cent.
On an annual basis, however, apartment rents remained 7 per cent higher and villa rents were up 5 per cent.
Around 2,200 homes were delivered in Abu Dhabi during Q2, with another 3,200 expected during the remainder of the year.
Dubai, Abu Dhabi offices remain in demand
While residential markets moderated, demand for premium offices remained strong.
Abu Dhabi Global Market on Al Maryah Island was operating at full occupancy with an active waiting list, reflecting continued demand from companies seeking Grade A offices.
In Dubai, Colliers described offices as a standout performer, with demand for off-plan Grade A developments continuing to support price growth across several areas.
Northern Emirates supply
The Northern Emirates also recorded some moderation in residential rents and prices.
Apartment rents declined around 2 per cent on average, with Sharjah recording the largest quarterly adjustment at around 4 per cent. Apartment sale prices declined 3 per cent in Sharjah and 2 per cent in Ras Al Khaimah.
Sharjah nevertheless saw strong new development activity, with around 4,600 residential units announced during Q2.
Around 7,450 homes are expected to be completed across the Northern Emirates in 2026, including 5,450 in Sharjah, 1,400 in Ras Al Khaimah and 600 in Ajman.
Al Ain remained comparatively stable during the quarter. Apartment rents were 7 per cent higher year-on-year and villa rents increased 4 per cent, while office and retail rents rose 3 per cent and 5 per cent, respectively.
ALSO READ- UAE businesses can now bid for commercial units in 2 Abu Dhabi districts Top Luxury Property expands presence with new Abu Dhabi branch Abu Dhabi to have private university
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept any
responsibility or liability for the accuracy, content, images, videos,
licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright issues
related to this article, kindly contact the provider above.
Comments
No comment