Abu Dhabi’s residential property market delivered its second-strongest quarter on record in the first three months of 2026, with transaction volumes in Abu Dhabi City exceeding 7,200, according to a report published by Savills.
The figure fell just short of the all-time peak of over 7,600 transactions recorded in Q4 2025, the Abu Dhabi Residential Market Report – Q1 2026 revealed.
Activity levels in January and February held firm, carrying the momentum built through 2025. March, however, saw a shift in tone following the escalation of regional geopolitical tensions from February 28, which triggered airspace disruptions, changes to school schedules and a move towards increased remote working across the emirate.
Abu Dhabi housing market hits near-record volumes despite geopolitical tensions, Ramadan slowdown
Seasonal factors compounded the effect. Ramadan, Eid Al-Fitr and an early start to the school spring break all contributed to a reduction in activity during the month. March transaction volumes fell 16 per cent month-on-month, though Savills noted that monthly data may not fully capture underlying trends due to typical lags in registration and reporting.
Savills experts urged caution in reading the headline figures, stating that transaction data – particularly for March – may reflect deals initiated in January and February, and may not yet fully represent current market conditions.
Off-plan sales continued to account for the bulk of market activity, rising to 81 per cent of all transactions in Q1 2026, up from 80 per cent in Q4 2025. The segment was driven in part by the launch of Manchester City Yas Residences by Ohana Development, which generated AED 6 billion in sales within 72 hours.
Apartment transactions reached a record 5,200 in the quarter, representing 73 per cent of all sales – up from 67 per cent across full-year 2025 – and marking the third consecutive quarter in which apartment volumes exceeded 4,000.
March also brought a change in the composition of off-plan transactions, with resale off-plan deals rising from 4 per cent to 15 per cent of total activity, pointing to growth in investor-led activity and reassignment transactions.
Average sales rates across the Abu Dhabi market moved higher through the quarter. Off-plan rates rose 39 per cent quarter-on-quarter, from AED 16,540 per square metre at the end of 2025 to AED 23,067 per square metre in Q1 2026.
In the ready market, average rates increased 2.66 per cent to AED 15,480 per square metre, up from AED 15,087 in Q4 2025. Savills reported that capital values rose across all key districts tracked, for both villas and apartments.
“Abu Dhabi’s residential market has demonstrated remarkable resilience, delivering near-record transaction volumes in Q1 despite a complex backdrop of regional geopolitical developments and seasonal factors. The strength of January and February is clear, with March activity reflecting a confluence of external factors, including regional geopolitical developments, Ramadan and the school spring break. Transaction volumes in March declined by 16% month- on-month; however, monthly data may not fully capture underlying trends due to typical lags in registration and reporting. Overall, Q1 2026 accounted for 35% of full-year 2025 transaction volumes, underscoring the sustained depth of demand across the market,” Ali Ishaq, Head of Residential Agency Abu Dhabi, Savills Middle East said in a statement.
What is particularly encouraging is that underlying demand fundamentals remain intact. The off- plan segment continues to attract strong interest, and we are seeing buyers from both within the UAE and internationally remain committed to Abu Dhabi’s long-term growth story. Supply constraints, limited near-term handovers, and the emirate’s continued investment in major infrastructure and cultural assets provide a compelling medium-term case for the market,” he added.
Developer activity remained firm in the quarter, with approximately 20 projects offering around 4,000 units launched – 80 per cent of which were apartments. That compares to 3,400 units launched in Q4 2025.
Modon Properties proceeded with the launch of Tara Park on Al Reem Island in March, a move Savills described as a demonstration of resilience given the prevailing uncertainty. Key completions during the quarter included Fay Al Reeman Phase 2 and The Gate Residence in Masdar City.
Savills said it expected near-term transaction activity to remain under some pressure as the market absorbs the impact of external developments.
However, the firm pointed to a number of factors it said would continue to support the market over the medium term, including the expansion of Abu Dhabi Global Market, new cultural attractions on Saadiyat Island, and the forthcoming opening of Disneyland Abu Dhabi. These, Savills said, were expected to drive wealth migration and sustain demand in the prime segment.
“The coming quarters will be important in establishing the market’s direction, but for those with a long-term perspective, the Abu Dhabi story remains a strong one,” he concluded.
