Abu Dhabi Residential Prices and Rents Ease as New Supply Expands

ABU DHABI, UAE: Abu Dhabi’s residential market is expected to see further measured softening in prices and rents as new supply broadens options for buyers and tenants, according to Cushman & Wakefield Core’s H1 2026 Abu Dhabi Mid-Year Market Update.

City-wide residential sales prices declined 1% quarter-on-quarter in Q2 2026, marking the first quarterly fall since late 2021. Despite the decline, average prices remained 22% higher year-on-year.

The consultancy said the adjustment comes as the capital’s residential development pipeline continues to expand, with upcoming supply concentrated largely within major master-planned communities.

Residential Launches Nearly Double

New residential launches rose sharply in the first half of 2026, increasing from 7,019 units across 29 projects in H1 2025 to 13,073 units across 43 projects in H1 2026.

Off-plan activity remained particularly strong, with sales volumes running at approximately five times those of the secondary market.

Average residential sales prices reached $4,456.91 (AED16,368) per square metre in Q2 2026, representing annual growth of 22%, but a quarterly decline of 1%.

The quarterly movement marked the first city-wide decrease in residential sales prices since late 2021.

Prathyusha Gurrapu, Head of Research at Cushman & Wakefield Core, said: “Abu Dhabi’s growth has largely leaned on its government-backed developers, and rather than pulling back amid regional uncertainty, they repositioned toward end-user demand and mid-prime product,”

Residential Rents Decline 5% Quarter-on-Quarter

Average residential rents stood at approximately $257 (AED945) per square metre per year in Q2 2026.

Rents remained 4% higher year-on-year, but declined 5% quarter-on-quarter, indicating some moderation as additional supply enters the market.

Performance varied considerably between communities.

Apartment rents on Saadiyat Island increased 18% year-on-year, while Al Raha Beach recorded growth of 13%.

Villa rents were more mixed. Saadiyat Island and Yas Island recorded annual increases of between 17% and 23%, while rents in Al Raha Gardens declined 10%.

The consultancy expects the gradual expansion of available stock to continue widening choice for both buyers and tenants, contributing to further measured softening in parts of the residential market.

Abu Dhabi Office Market Remains Tight

Conditions in Abu Dhabi’s office sector remained considerably stronger.

Average office rents increased 15% quarter-on-quarter and 32% year-on-year to approximately $594 (AED2,182) per square metre per year.

Prime and Grade A office occupancy remained at around 99%, while city-wide office occupancy stood at 93%.

“With little meaningful new supply expected in the near term, conditions are likely to remain in landlords’ favour,” the report stated.

The contrast between the residential and commercial sectors highlights differing supply conditions across Abu Dhabi’s property market, with expanding housing availability beginning to moderate residential pricing while limited office supply continues to support rental growth.