Quarterly Edition 01
Q4 2025 | October – December 2025
Theme: Record activity and strong price growth
Abu Dhabi closed 2025 with exceptionally strong residential activity. Savills reported more than 20,000 residential sales for the year, with Q4 recording the highest quarterly transaction volume on record. Off-plan homes represented around 80% of Q4 transactions, reflecting strong buyer interest in new launches and limited ready-home availability.
Prices, rents and investment
CBRE’s Q4 review recorded annual residential price growth of around 32% and rental growth of around 22% in Abu Dhabi. Apartment prices rose faster than villas in the period, while rental demand remained particularly strong in popular lifestyle communities. These are market-wide research indicators, not a guarantee that every building or unit achieved the same growth.
For investors, the quarter highlighted the importance of separating capital appreciation from rental yield. Rising purchase prices can reduce gross yield unless rents keep pace. A proper investment appraisal should deduct service charges, maintenance, vacancy, leasing costs, financing and acquisition expenses.
Developments and handovers
2025 completions remained below some earlier forecasts. Market reporting highlighted deliveries including Radiant Square, Yas Golf Collection and Yas Island Phase 2. New project launches were concentrated in growth locations including Hudayriyat Island and Al Reem Island, while The Sustainable City, Reem Hills Villas and The Grove Saadiyat featured in the forward pipeline.
Regulatory watch
Law No. 2 of 2025 amended Abu Dhabi’s real estate sector framework. Its implementation was followed by a series of more detailed administrative decisions announced in March 2026, covering escrow withdrawals, jointly owned property, owners’ committees and purchaser compensation/refunds in certain cancelled-project situations.
What it meant: a strong seller and developer environment, high off-plan activity and continued rental pressure. Buyers needed to scrutinise launch pricing, delivery commitments and the full cost of ownership rather than relying on headline market growth.
Sources: Savills Q4 2025 · CBRE UAE Q4 2025 ·
Quarterly Edition 02
Q1 2026 | January – March 2026
Theme: Momentum continued, with the first signs of a more measured market
Abu Dhabi City recorded more than 7,200 residential transactions in Q1, its second-strongest quarterly result on record and only marginally below the Q4 2025 peak. Activity was strong in January and February, while March transaction volumes eased month-on-month amid regional uncertainty and seasonal factors including Ramadan and Eid.
Buyer demand and market direction
Population growth, a resilient local economy and continued investor interest supported demand. Off-plan launches and sales remained important, while buyers increasingly compared project location, developer delivery record, payment plans and the availability of completed alternatives.
Regulatory developments
On 27 March 2026, Abu Dhabi’s Department of Municipalities and Transport announced four administrative decisions to implement the amended real estate law. They addressed controls for withdrawals from project escrow accounts before 20% completion; jointly owned properties and common facilities; a unified bylaw for owners’ committees; and compensation ratios and refund procedures for certain cancelled units that are resold. These measures are intended to clarify responsibilities and strengthen buyer protection and project governance.
Developments and investment considerations
Developer activity remained confident, with new launches and branded-residence announcements adding to the pipeline. For investors, the key question was whether projected rents and resale values justified launch prices. Gross yield should be calculated using realistic achievable rent divided by the total purchase cost; net yield should then account for recurring expenses and vacancy.
What it meant: demand remained robust, but monthly transaction changes showed why a single record quarter should not be treated as a permanent growth rate. Investors were advised to assess each project and its competing supply individually.
Sources: Savills Abu Dhabi Q1 2026 · Abu Dhabi Media Office – regulatory decisions, 27 March 2026
Quarterly Edition 03
Q2 2026 | April – June 2026
Theme: A transition towards a more balanced market
Residential transaction volumes moderated by 9% quarter-on-quarter to 7,129 transactions, according to Savills. Off-plan represented 85% of residential transactions in the quarter. Around 2,100 residential units were launched during Q2, while sales prices remained resilient despite the softer pace of transactions.
Market performance and rental conditions
Market data indicated that city-wide residential sale prices fell 1% quarter-on-quarter in Q2 but remained 22% higher year-on-year. Residential rents were down 5% quarter-on-quarter and still 4% higher year-on-year. The office market remained much tighter, with prime and Grade A occupancy around 99% in its H1 review and strong annual rental growth.
Important rental change
On 3 June 2026, ADREC announced a temporary change to Abu Dhabi’s annual rental increase percentage, reducing it from 5% to 0% per annum until further notice. ADREC said the measure applies to residential, commercial and industrial tenancy renewals, with renewals and new agreements referencing the rental rate in the property’s last registered Tawtheeq contract. Landlords and tenants should always confirm the current official position and their own contract details before acting.
Investment and ROI
As rental growth began to moderate and more homes entered the market, investors needed to avoid using older rent increases as the basis for future projections. A lower purchase price, strong occupancy prospects and manageable service charges can matter more to net ROI than a high advertised gross yield. Q2 research also pointed to a more measured leasing market and greater choice for tenants in some locations.
What it meant: a market still showing positive annual performance, but with slower quarterly movement. Buyers and investors could increasingly compare options rather than assuming every launch or community would continue to appreciate at the same pace.
Sources: Savills Q2 2026 · · ADREC rental update
Quarterly Edition 04
Q3 2026 | July – September 2026
Theme: Moderating prices and rents, with a growing handover pipeline
Q3 research showed a more differentiated market. Market data indicated that Abu Dhabi residential sale prices declined 1% quarter-on-quarter but remained 22% higher year-on-year. Residential rents fell 5% quarter-on-quarter while remaining 4% higher year-on-year. Apartment and villa performance varied significantly by community and property type.
Transactions, launches and supply
ADREC’s H1 report recorded AED 117 billion in total real estate transactions in the first six months of 2026, up 112% year-on-year. Residential unit sales reached AED 70.4 billion, with off-plan accounting for 89% of sales value. ADREC estimated approximately 409,000 residential units across the emirate and projected around 71,000 additional units by 2030, with deliveries expected to peak in 2028.
Q3 launch activity accelerated, with nearly 8,400 units announced, concentrated in locations including Hudayriyat Island, Yas Island, Al Reem Island and Al Ghadeer. Market reporting recorded 2,545 residential units delivered during the first nine months of 2026. Q3 completions included Aldar’s The Grove – Heart on Saadiyat Island and Yas Park Views – Noya 5. A further 4,412 units were forecast for Q4, although some scheduled completions could move into 2027.
Regulation and systems
In August 2026, the Department of Municipalities and Transport announced an occupancy-certificate compliance programme and a grace period for owners and operators to apply for or renew certificates through the Municipal e-Permitting System. The requirements cover areas including structural stability, Civil Defence and fire safety, gas systems, plumbing and HVAC. ADREC stated that new Tawtheeq lease registrations would be blocked for units in buildings without a valid occupancy certificate. Owners and property managers should verify the latest requirements and the status of their building.
Abu Dhabi’s off-plan mortgage registration framework also became operational during 2026, allowing eligible purchasers who have paid the required proportion of a unit’s price to seek construction-stage financing, subject to lender, developer and regulatory conditions. In Dubai, the Land Department launched its Initial Registration digital platform in September to connect project registration, transaction registration and escrow account management. These are distinct emirate-specific systems.
ROI and investor outlook
Q3 research and listing-based market reports showed indicative gross yields differing by area and property type. Such figures are not net returns and should not be treated as guaranteed. Investors should model achievable rent, service charges, maintenance, vacancy, furnishing, management, finance and transaction costs. The expected increase in supply between 2027 and 2029 makes project-level and community-level analysis especially important.
What it meant: Abu Dhabi remained active, but the market was moving away from uniform rapid growth. Building quality, realistic pricing, handover certainty, rental demand and future competing supply became increasingly important to investment decisions.
Sources: · ADREC H1 2026 report · DMT occupancy certificates · Dubai Land Department Initial Registration
How to read the figures
Market reports use different datasets, time periods and methodologies. Quarter-on-quarter changes, year-on-year changes, asking prices, registered transactions and gross yields are not directly interchangeable. ROI examples are indicative only; net returns depend on the individual property and its costs. Regulatory summaries are general information, not legal advice. Always confirm current rules and project status with the relevant authority, developer or professional adviser.
