Hudayriyat and Reem Islands dominate Abu Dhabi’s booming Dh66bn property market
Foreign investment jumps sharply across diverse global markets
ABU DHABI – Abu Dhabi’s real estate sector has opened 2026 with record-breaking momentum, as transaction values surged sharply in the first quarter, led by strong activity on Hudayriyat Island.
The latest figures underline rising investor confidence and sustained demand across both local and international markets. High-value developments, expanding infrastructure, and a growing pipeline of projects have further reinforced the emirate’s position as a key property destination in the region.
Hudayriyat Island emerged as the top-performing area in terms of total real estate sales value, accounting for the largest share of overall transactions during the quarter. The island, developed by Modon, recorded deals worth approximately Dh11.97 billion.
Al Reem Island followed in second place with Dh9.45 billion in transactions, reflecting continued appetite for premium waterfront and urban developments.
Market surge
According to the Abu Dhabi Real Estate Centre, total real estate transactions reached Dh66 billion in Q1 2026, marking a 160.7% increase compared to Dh25.31 billion recorded during the same period in 2025. The number of transactions also rose significantly to 13,518 deals, up from 6,896 a year earlier.
Global capital is choosing Abu Dhabi driven by strong confidence in the market and its developers.
— Abu Dhabi Real Estate Centre - مركز أبوظبي العقاري (@adrec_ae) April 8, 2026
٠ AED 8 billion in foreign direct investment in Q1 2026 alone⁰• +423% year-on-year growth⁰• AED 66 billion in total transactions in just three months
A market built on trust,… pic.twitter.com/h4pYdxwrb9
Sales and purchase transactions accounted for Dh50.97 billion across 8,940 deals. This represents a 228.6% increase in value and a 134% rise in volume year-on-year, highlighting the strength of buying activity in the market. Mortgage transactions also posted notable growth, reaching Dh15.03 billion through 4,578 transactions. This reflects a 53.4% increase in value and a 48.8% rise in volume compared to Q1 2025.
Hudayriyat Island led the rankings, followed by Al Reem Island and Saadiyat Island, which recorded Dh8.8 billion in transactions. Yas Island also posted strong performance, with activity exceeding Dh5.5 billion during the quarter.
Investor demand
The robust performance has been attributed to sustained investor confidence and a market environment supported by regulatory oversight and long-term planning. Rashed Al Omaira, Director-General of the Abu Dhabi Real Estate Centre, said the strong quarterly results reflect growing trust from both domestic and international investors.
He noted that the record level of activity signals not only rising demand but also a more disciplined market focused on long-term investment fundamentals. The regulatory framework, he added, continues to play a critical role in maintaining transparency, trust, and accountability across the sector.
Market indicators point to continued strength beyond transactions alone. Leasing activity maintained upward momentum into March, with the repeat lease price index recording a 16% annual increase compared to the same period in 2025. This trend highlights sustained demand from both end users and investors, particularly in key residential and mixed-use areas.
Supply pipeline
While demand remains strong, the market is being supported by an expanding development pipeline. A total of 16 new real estate projects were registered during the first quarter, representing a 60% increase compared to the same period last year.
Residential supply across Abu Dhabi is projected to grow by 10,272 units in 2026, increasing from 314,976 to 325,248 units, marking annual growth of 3.3%. Further expansion is expected in 2027, indicating continued development activity aligned with rising demand.
Foreign Direct Investment has also seen exceptional growth during the quarter. Total investments by individuals reached Dh8.27 billion, marking a 423% increase compared to Q1 2025. This figure is equivalent to the total foreign direct investment recorded خلال 2025, underscoring the pace of growth in international participation.
Investors from 99 nationalities contributed to the market’s performance, compared to 68 nationalities during the same period last year. Foreign investment activity remained concentrated within designated investment zones, accounting for approximately 84% of total investment value. These zones recorded over Dh36.4 billion out of a total Dh43.59 billion, reflecting a 242% increase year-on-year.
Key contributing markets included the United Kingdom, India, the Russian Federation, China, Jordan, France, and Egypt, highlighting Abu Dhabi’s growing appeal across diverse global investor segments.