Abu Dhabi Residential Sales Reach AED 21.5 Billion In Q3 2026 As Luxury Demand Strengthens, Says Savills

(MENAFN- Mid-East Info) Off-plan transactions account for 81% of sales, while transactions above AED 10 million more than double year-on-year Borderless Finance. AI-Native.

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Abu Dhabi's residential property market maintained its resilience in the third quarter of 2026, recording 6,085 transactions worth AED 21.5 billion, according to the latest Market in Minutes report from Savills Middle East.

While transaction volumes declined by 19% quarter-on-quarter and 7% year-on-year, total sales value remained 32% above Q3 2025 levels, reflecting continued demand for higher-value properties.

Off-plan properties accounted for 81% of residential transactions during the quarter, reinforcing their dominant position in the market. The average off-plan transaction value reached AED 5 million, increasing by 15% quarter-on-quarter and 40% year-on-year, while the average ready-property transaction stood at AED 2.8 million.

Luxury residential market sees renewed momentum

The luxury segment recorded particularly strong activity, with 582 transactions exceeding AED 10 million during Q3 2026, representing a 35% quarterly increase and a 104% rise compared with the same period last year. Off-plan properties accounted for 95% of these transactions.

Rachael Kennerley, Director of Research at Savills Middle East, commented,“Abu Dhabi's residential market continues to demonstrate resilience, even as transaction volumes moderate from the levels recorded earlier this year. What we're seeing is a shift towards higher-value purchases, particularly in the off-plan and luxury segments, where demand remains strong.

“Buyers are becoming increasingly selective, with greater emphasis on location, quality and long-term value. Abu Dhabi's expanding lifestyle offering, infrastructure investment and growing international profile continue to support interest from both local and overseas buyers.”

Residential prices remain resilient

Residential prices recorded moderate quarterly growth, with average apartment values reaching AED 22,700 per sq m, up 9% year-on-year, while villa and townhouse prices averaged AED 18,200 per sq m, an annual increase of 8%.

The rental market recorded 50,500 transactions during the quarter, up 29% from Q2 2026, largely driven by renewals, which accounted for 68% of rental activity. New rental rates showed mixed performance across key residential communities, reflecting increasingly location-specific market conditions.

International investment supports long-term outlook

International investment continues to play an important role in Abu Dhabi's residential market. Foreign buyers, including resident expatriates and non-resident investors, accounted for 70% of residential sales value in the first half of 2026, compared with 64% in H1 2024.

Looking ahead, approximately 68,000 additional residential units are projected to enter the market by 2030, with new supply concentrated across key locations including Saadiyat Island, Al Reem Island, Yas Island and Zayed City.

Savills expects demand to remain supported by Abu Dhabi's economic fundamentals, ongoing infrastructure investment and continued interest in premium residential developments, although the growing supply pipeline will remain an important factor in shaping market performance.

About Savills Middle East:

Savills plc is a global real estate services provider listed on the London Stock Exchange. With a presence in the Middle East for over 40 years, Savills offers an extensive range of specialist advisory, management and transactional services across the United Arab Emirates, Oman, Bahrain, Egypt, and Saudi Arabia. Expertise includes property management, residential and commercial agency services, property and business assets valuation, and investment and development advisory. Originally founded in the UK in 1855, Savills has an international network of over 700 offices and associates employing over 40,000 people across the Americas, UK, Europe, Asia Pacific, Africa, and the Middle East.

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