Exclusive Interview: Faris Al Khatab on Abu Dhabi's Real Estate Growth

Abu Dhabi's property market continues to strengthen its position as one of the Middle East's most resilient and attractive investment destinations. With real estate transactions reaching $31.86 billion (AED117 billion) during the first half of 2026, the emirate is benefiting from robust investor confidence, sustained population growth and a series of policy initiatives designed to support long-term economic expansion.

As new infrastructure projects, regulatory reforms and community-focused developments reshape the market, industry leaders believe Abu Dhabi's current momentum reflects more than a cyclical surge. Instead, it signals the continued evolution of a mature real estate market driven by both international capital and end-user demand.

In this exclusive interview with Property News International, Faris Al Khatab, Managing Director at Object 1 Abu Dhabi, shares his perspective on the factors driving the emirate's record-breaking performance, the buyer profiles shaping today's market, the strongest-performing real estate segments, and why Abu Dhabi remains well positioned for sustainable growth throughout the second half of 2026.

How do you interpret the current momentum in Abu Dhabi's real estate market? Do you believe current demand reflects sustainable long-term growth, or is it an exceptional market cycle?

The pace of Abu Dhabi's real estate growth in 2026 is exceptional, but the factors driving it suggest this is more than a short-term market cycle. In Q1 2026, real estate transactions reached AED 66 billion across 13,518 deals, up 160.7% year on year and marking the strongest quarterly performance on record.

What makes this growth more sustainable is that demand is being supported by changes taking place across the wider economy. Abu Dhabi's population reached 4.14 million in 2024, while employment grew by 9.1%. At the same time, the non-oil economy grew by 6.6% in Q2 2025 and represented 56.8% of GDP. This means housing demand is increasingly linked to more people moving to Abu Dhabi, more jobs being created across different sectors and more residents choosing to stay long term.

The next phase will require discipline. As more developers and projects enter the market, sustainable growth will depend on building for real demand, selecting the right locations and creating communities that people genuinely want to live in, rather than simply following current sales momentum.

What type of buyers are driving your sales growth today? Are they predominantly international investors or end-users purchasing homes for their own residence?

Sales growth today is being driven by a mix of international investors and end users.

International demand has become particularly important this year, with foreign property investment in Abu Dhabi reaching AED 8.27 billion and buyers representing 99 nationalities. At the same time, healthy end-user demand is helping create a more balanced and mature market.

For investors, the decision is increasingly about more than short-term price growth. They are looking closely at rental demand, future supply, the developer's delivery record, community infrastructure and whether a property will remain attractive to tenants over time.

End users are asking different questions. Their focus is on how a home supports everyday life, including space, connectivity, schools, greenery, privacy and community facilities. Recent market data has also shown a shift towards buying rather than renting in Abu Dhabi, alongside stronger demand for larger villas, suggesting that more buyers are purchasing with long-term living in mind.

This balance is important. A market supported by both investment demand and people choosing to make Abu Dhabi their home creates stronger foundations for sustainable long-term growth.

Which real estate segments or asset classes are currently experiencing the strongest demand, and what factors are driving this interest?

The strongest demand today remains in residential real estate, particularly well-located apartments and larger homes that support long-term family living.

In Abu Dhabi, apartments accounted for around 72% of residential transactions in 2025, up from about 67% the year before. At the same time, demand for larger villas has also increased, pointing to more families buying with long-term residence in mind.

This is why established and well-planned districts such as Al Reem Island, Saadiyat Island and Yas Island, which combine strong connectivity with lifestyle and community infrastructure, are likely to continue attracting some of the strongest demand.

What is your outlook for the Abu Dhabi real estate market during the second half of 2026? Do you expect the current momentum to continue?

The outlook for Abu Dhabi's real estate market in the second half of 2026 remains positive, and the current momentum is expected to continue. What is particularly encouraging is that growth is being supported not only by property demand, but also by new policies and infrastructure that make Abu Dhabi easier and more attractive to live in long term.

The temporary freeze on rent increases gives residents greater certainty over housing costs at a time when occupancy is high and rents have been rising. At the same time, Abu Dhabi is moving towards more flexible rental payments through the new Rent Now, Pay Monthly initiative, which aims to replace large annual or quarterly payments with monthly digital payments.

Etihad Rail's passenger network will also strengthen Abu Dhabi's appeal to the rest of the UAE. Services between Abu Dhabi and Fujairah began in June, while Dubai and Al Dhaid stations are scheduled to open in September 2026. By making travel between emirates faster and easier, the network can widen the residential appeal of Abu Dhabi beyond people who work within the capital itself.

Altogether, in the coming months, these developments will further strengthen Abu Dhabi's position as a place where people can build their lives for the long term, rather than simply invest.