Asking prices for affordable and mid-tier apartments in Abu Dhabi climbed modestly in the third quarter of 2026, according to Bayut’s latest market analysis, with price-per-square-foot gains of between 3 per cent and 9.20 per cent across key districts.
Mid-tier apartments in Baniyas recorded the sharpest increase at 9.20 per cent, followed by affordable flats in Al Ghadeer at 6.20 per cent. Al Maryah Island apartments saw a more measured rise of 3.20 per cent. Search demand for mid-tier apartments was led by Al Reem Island, with Masdar City and Baniyas also drawing increased interest.
“Abu Dhabi is becoming a serious contender in the global property market, and we’re seeing that particularly in ultra-luxury homes and branded residences. The range of off-plan projects is giving buyers more choice and attracting interest from international high-net-worth individuals and institutional investors. This confidence also comes from knowing that the right foundations are in place. The government’s focus on clearer regulation, greater transparency and investor-friendly policies is helping buyers feel more confident about their decisions. Looking ahead, I expect Abu Dhabi to continue attracting interest from both local and international buyers, putting the market in a strong position as we approach the end of 2026,” Haider Ali Khan, CEO of Bayut, and Board Member of the Dubai Chamber of Digital Economy said in a statement.
On investment returns, Al Dhafrah villas topped the yield rankings at 11.50 per cent, while Between Two Bridges (Bain Al Jessrain) offered the highest ROI for affordable houses at 10.10 per cent. In the apartment segment, affordable units in Al Reef returned a projected yield of 7.90 per cent, and Al Samha mid-tier apartments offered 7.10 per cent.
The ultra-luxury segment drew continued interest from high-net-worth buyers. Saadiyat Island and The Marina were the most searched locations for ultra-luxury apartments, with The Marina recording a 5.00 per cent ROI and Al Maryah Island returning 7.00 per cent in the luxury category.
For villa buyers at the top end of the market, Nurai Island and Saadiyat Island were the preferred destinations, while Yas Island and Al Raha Beach dominated in the luxury villa tier.
Off-plan activity remained active. Gardenia Bay and Saadiyat Cultural District led searches in the luxury and ultra-luxury apartment categories, respectively, while Yas Park Gate and Saadiyat Lagoons attracted buyers in the off-plan villa segment.
The rental market was largely unchanged. Half of survey respondents expect rents to hold steady over the coming months, with 25% anticipating a rise. Khalifa City and Al Reem Island remained the most searched areas for affordable and mid-tier apartment rentals. Zayed City and Khalifa City led searches for affordable and mid-tier villa rentals.
Sentiment among buyers was broadly positive. Bayut’s Market Sentiment Survey, conducted alongside dubizzle, found 46 per cent of buyers expect prices to rise over the next 12 months, and 60 per cent described themselves as highly confident or cautiously optimistic about the market over a five-year horizon. On the sell side, 79 per cent of sellers priced at or below market value and 69 per cent said they were willing to negotiate.
