Key takeaways
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Capital values: The ValuStrat Price Index (VPI) for Abu Dhabi rose 17.8% YoY and 6.4% QoQ to 148 points.
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Off-plan dominance: A record 6,416 off-plan transactions accounted for 80% of total sales in Q1.
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Top performers: Al Reef led capital gains with apartments up 36.6% YoY and villas up 26.9% YoY.
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Commercial resilience: Office asking rents increased by 21.3% annually, with a 90% average occupancy rate.
What does ValuStrat’s latest data reveal about Abu Dhabi residential values?
Abu Dhabi’s residential property market maintained its upward trajectory throughout the first quarter of 2026. According to ValuStrat data featured in Khaleej Times, the VPI for the emirate's freehold residential market reached 148 points, reflecting a 17.8% annual increase and a 6.4% quarterly rise.
Performance was robust across key communities. Al Reef emerged as the top performer, with apartment values surging 36.6% YoY and villas rising 26.9% YoY. Saadiyat Island also recorded strong gains, with villa values up 15.4% and apartments increasing by 15.3%. This acceleration reflects accessible price points supporting end-user demand as Abu Dhabi sits at a later position in the property cycle relative to Dubai.
How are transaction volumes and new supply shaping the market?
The emirate witnessed exceptional activity in the off-plan segment, recording 6,416 transactions in Q1—a 20.6% quarterly increase. Off-plan sales accounted for 80% of total transactions, with average prices rising 21.6% quarter-on-quarter to Dh 2,191 per square foot. In contrast, ready home transactions declined 16.3% quarterly, primarily influenced by seasonal factors such as Ramadan and Eid holidays, though ready home prices still achieved a 25% annual increase.
On the supply side, the market remains tightly controlled, further supporting price growth. The first quarter saw the completion of 2,018 apartments and 392 villas, representing just 13.1% of the expected residential pipeline for 2026.
How are the rental and commercial sectors performing?
Abu Dhabi's rental market demonstrated stability during the quarter. The residential rental index rose 5.9% annually to 128.1 points, maintaining quarter-on-quarter stability with average occupancy levels at 88.1%. Citywide asking rents averaged Dh 121,500 annually for apartments and Dh 260,000 for villas.
The commercial sector also showcased strong resilience. Office asking rents rose by 21.3% annually and 4.4% on a quarterly basis. With average occupancy across central business districts standing at 90%, the capital's real estate landscape continues to display robust fundamentals despite broader regional uncertainties.
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