AGBI reports that Abu Dhabi and Ras Al Khaimah enter 2026 with solid real estate fundamentals, though each market is being shaped by distinct drivers, according to analysis supported by ValuStrat data.
Abu Dhabi: supply and affordability take centre stage
ValuStrat figures show Abu Dhabi recorded its strongest capital growth on record in Q3 2025, with the Price Index up 10.5% year-on-year and 4% quarter-on-quarter. Villa values rose 12% annually, driven by demand for freehold homes. Off-plan transactions accounted for 79% of residential sales, reflecting a market increasingly led by future supply.
With only a small portion of the 2025 pipeline delivered so far, ValuStrat notes that nearly 33,000 new units are scheduled through to 2030, signalling a shift toward a more supply-driven and affordability-focused cycle.
Ras Al Khaimah: rapid appreciation continues
Ras Al Khaimah remains in a strong investment phase, with ValuStrat data showing 15% annual growth in residential capital values. Apartment prices on Al Marjan Island rose 17% year-on-year, while developments such as Al Hamra and Mina Al Arab posted double-digit gains.
AGBI reports that pricing momentum in RAK is now rivalling, and in some cases exceeding, prime Dubai districts, underpinned by off-plan sales dominance and large-scale coastal masterplans.
Overall, ValuStrat analysis suggests Abu Dhabi is transitioning toward a more balanced, delivery-led cycle, while Ras Al Khaimah continues to outperform national averages as investor-led demand remains strong.
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