The UAE property market continued its strong performance in Q1 2026 as Abu Dhabi recorded a major increase in residential transactions while Dubai maintained momentum through a robust development pipeline and steady demand across residential and commercial sectors.
According to the latest Colliers UAE Real Estate Market Report, the country’s real estate sector is transitioning into a more mature and sustainable phase after the exceptional growth witnessed in 2025. The report highlighted that strong economic fundamentals, infrastructure investments, and changing investor behavior continue to support long-term market stability across the UAE.
Abu Dhabi Residential Transactions Surge in Q1 2026
Abu Dhabi’s real estate market showed strong growth during the first quarter of 2026, with approximately 7,800 residential transactions recorded across the emirate.
The total number of deals increased by 10 percent quarter-on-quarter and surged 119 percent year-on-year, reflecting growing investor confidence and strong demand for high-quality residential communities.
Average apartment sales prices in Abu Dhabi rose by 4 percent quarterly and 32 percent annually, while villa prices increased by 2 percent quarter-on-quarter and 21 percent year-on-year.
Premium residential communities on Yas Island and Al Reef continued to attract strong buyer interest due to their lifestyle offerings and long-term investment appeal.
Abu Dhabi Office Market Maintains High Occupancy
The Abu Dhabi commercial real estate sector also remained strong in Q1 2026, with office occupancy levels exceeding 95 percent.
Office rental rates across different grades increased between 8 percent and 20 percent annually as demand for quality corporate spaces remained high.
The delivery of Shams Tower on Al Reem Island added new office inventory to the market, while upcoming developments such as Masdar City Square and The Link are already attracting significant occupier interest ahead of completion.
Dubai Real Estate Market Enters Mature Growth Phase
Dubai’s property market continued evolving into a more balanced and sustainable environment supported by strong fundamentals and ongoing infrastructure development.
New apartment deliveries exceeded 10,000 units for the second consecutive month during Q1 2026, while around 1,900 villas were completed during the quarter.
Dubai’s development pipeline remains substantial, with approximately 65,000 apartments and 12,500 villas expected to be delivered by the end of 2026, although some projects may extend into future periods.
Dubai Rental and Sales Market Remains Stable
Dubai’s rental market maintained positive momentum throughout the first quarter of 2026.
Average apartment rents increased by 2 percent quarter-on-quarter, mainly supported by continued demand for affordable housing options. Villa rental prices remained generally stable as tenants adopted a more value-focused approach amid increasing market choices.
The residential sales market also maintained growth despite slower activity in completed apartment and villa transactions during March 2026.
While transaction volumes moderated slightly, average sales prices continued trending upward across off-plan and secondary residential markets. The office sales segment emerged as one of the strongest-performing categories due to limited availability of Grade A corporate spaces.
Northern Emirates and Al Ain Show Stable Growth
The report also highlighted continued growth across the Northern Emirates, including Sharjah, Ras Al Khaimah, Ajman, Fujairah, and Umm Al Quwain.
Sharjah recorded the highest number of newly launched residential units during the quarter with approximately 1,700 units added to the market.
Apartment rental rates in Sharjah and Ras Al Khaimah increased modestly by 1 to 2 percent quarter-on-quarter, while other emirates remained relatively stable.
Meanwhile, Al Ain’s property market continued benefiting from steady local demand. Apartment rents increased by 7 percent annually, while villa rents rose 2 percent year-on-year.
Retail and office sectors across Al Ain also maintained stable performance, supported by demand in key commercial corridors.
UAE Real Estate Market Moves Toward Sustainable Growth
Colliers noted that the UAE real estate market is gradually shifting from rapid expansion toward a more occupier-led and sustainable investment environment.
Market performance is increasingly being shaped by asset quality, community infrastructure, and changing tenant preferences rather than speculative activity.
Experts believe the UAE property market remains well-positioned for long-term growth due to economic diversification, population growth, infrastructure expansion, and continued investor confidence across residential, office, and retail sectors.
