Abu Dhabi real estate records Dh66 billion deals amid strong investor demand
Foreign investment spikes sharply as buyers from 99 nationalities enter market
ABU DHABI – Abu Dhabi’s real estate sector has delivered a striking performance at the start of 2026, with transaction activity reaching record levels amid strong investor appetite and sustained demand across the emirate.
Data released by the Abu Dhabi Real Estate Centre (ADREC) shows that total transaction value climbed to Dh66 billion in the first quarter, marking a sharp 160.7 percent increase compared to Dh25.31 billion recorded during the same period in 2025.
The number of deals also saw a significant rise, with 13,518 transactions completed in Q1 2026, up from 6,896 transactions a year earlier. The figures underline the rapid expansion of Abu Dhabi’s property market, supported by regulatory oversight and growing international interest.
Market surge
Sales and purchase transactions accounted for the bulk of activity, totalling Dh50.97 billion across 8,940 deals. This represents a 228.6 percent increase in value and a 134 percent rise in volume compared to the first quarter of 2025.
Mortgage transactions also contributed to the growth momentum, reaching Dh15.03 billion through 4,578 deals. This segment recorded a 53.4 percent increase in value and a 48.8 percent rise in volume on an annual basis, reflecting continued confidence among buyers and lenders alike.
Among the top-performing locations, Hudayriyat Island led the market with approximately Dh11.97 billion in transactions. Reem Island followed with Dh9.45 billion, while Saadiyat Island recorded Dh8.8 billion. Yas Island also maintained strong activity, exceeding Dh5.5 billion in total deals.
Investment inflow
Foreign direct investment emerged as a key driver of growth during the quarter. Total investments by individuals reached Dh8.27 billion, marking a 423 percent increase compared to Q1 2025. This figure is equivalent to the total foreign investment recorded across the whole of 2025, highlighting the scale of the surge.
Investor diversity also expanded significantly, with buyers from 99 nationalities participating in the market, compared to 68 nationalities during the same period last year. This reflects Abu Dhabi’s growing appeal as a global property investment destination.
Foreign investment activity remained heavily concentrated within designated investment zones, accounting for around 84 percent of the total investment value. These zones recorded more than Dh36.4 billion out of Dh43.59 billion in total transactions, representing a 242 percent increase year-on-year. Key contributing markets included the United Kingdom, India, the Russian Federation, China, Jordan, France and Egypt.
Supply outlook
Beyond transactions, broader market indicators point to sustained momentum across the sector. Leasing activity continued to strengthen into March, with the repeat lease price index registering a 16 percent annual increase compared to March 2025. This reflects ongoing demand from both end-users and investors.
At the same time, supply is being steadily expanded to meet rising demand. A total of 16 new real estate projects were registered during the first quarter, representing a 60 percent increase compared to the same period last year.
Residential inventory in Abu Dhabi is projected to grow by 10,272 units in 2026, increasing from 314,976 units to 325,248 units, marking annual growth of 3.3 percent. The pipeline is expected to expand further into 2027, indicating a market that continues to develop on stable and structured foundations.
ADREC Director-General Rashed Al Omaira said the strong quarterly performance reflects growing confidence among both local and international investors. He noted that the rise in activity signals not only heightened demand but also a more disciplined market environment focused on long-term investment.
He added that ADREC’s regulatory role remains centred on maintaining transparency, trust and accountability across the sector, supporting Abu Dhabi’s position as a stable and reliable real estate investment destination.