The Abu Dhabi property market is set for another year of measured growth and solid performance as it moves into 2026. Market research shows healthy demand across housing, offices, retail space and hospitality, supported by strong economic fundamentals and continued population growth.

Residential Market Gains Momentum

Residential property values are expected to climb notably in 2026, with overall capital appreciation projected to be higher than the previous year. Apartments, in particular, are forecast to outperform villas, as buyers show clear preference for value, convenience and contemporary lifestyle features.

Tight supply conditions and high occupancy rates are creating upward pressure on both prices and rents. Although a broader pipeline of new homes exists, actual handovers are likely to be lower, sustaining demand for existing stock.

Office Space Demand Remains Strong

Grade A office space is in short supply, and demand from companies expanding or relocating into the capital continues to outstrip availability. This imbalance is expected to lead to further increases in rental rates and workplace capital values, especially in well-connected business districts.

Hospitality Sector on a Steady Path

Abu Dhabi’s hotel industry is also positioned for positive performance in 2026. Several new upscale properties are entering the market, helping to boost average occupancy and room rates. Visitors from key source markets are expected to return in stronger numbers, alongside local travel demand.

Macro Trends Supporting Property Market Growth

Underlying the real estate performance is a broader economic backdrop that remains supportive:

• Non-oil sectors continue to show resilience and growth, strengthening long-term demand for both residential and commercial property.
• Population growth in the UAE capital is expected to continue, fuelling demand for housing and rental accommodation.
• Infrastructure projects aimed at improving connectivity and quality of life add further appeal for investors and owner-occupiers alike.

What This Means for Investors and Buyers

For investors, 2026 looks like another year of steady returns, with strong fundamentals supporting demand across multiple property segments. Buyers seeking long-term value may find opportunities in well-located apartments and quality office assets. Tight supply and rising occupancy rates suggest rental yields could remain attractive over time.