DELIVERY WAVE BUILDS AS LAUNCH ACTIVITY STRENGTHENS
A total of 2,545 residential units were delivered in Abu Dhabi during the first nine months of 2026, with Q3 completions led largely by Aldar through The Grove –Heart on Saadiyat Island and Yas Park Views –Noya 5. A further 4,412 units are expected in Q4 2026, which would bring full-year completions to c. 6,950, around 60% more than in 2025, although some of these handovers are likely to slip into 2027. The bigger shift begins in 2027, with over 52,000 units scheduled for delivery between 2027 and 2029, making absorption over this period a key test for the market. Launch activity strengthened further in Q3 2026, with nearly 8,400 units announced, up around 40% from the previous quarter. Modon and Aldar together accounted for around 37% of new launches, with activity concentrated on Hudayriyat Island, Yas Island, Al Reem Island and Al Ghadeer.
SALES PRICES START TO EASE AFTER YEARS OF STRONG GROWTH
Abu Dhabi’s residential sales market showed early signs of easing in Q3 2026. City-wide prices fell 1% QoQ, marking the first quarterly decline in five years, but remained 22% higher YoY, reflecting strong gains in late 2025 and early 2026. Apartments continued to lead annual growth, with Saadiyat Island up 21% YoY, Al Reef Downtown up 18%, Reem Island up 16%, Al Raha Beach up 10% and Yas Island up 7%. Villa performance was more mixed. Al Reef Villas (+22% YoY), Hudayriyat Island (+20%) and Al Raha Gardens (+11%) recorded strong gains, while prices fell in Khalifa City (-19%) and on Saadiyat Island (-10%). Yas Island was broadly flat (+1%). Hudayriyat Island stood out, with villa prices up by 21% QoQ, likely reflecting the pricing of new project launches.
IMPACT OF RENTAL FREEZE BEGINS TO EMERGE
Abu Dhabi’s residential leasing market has started to soften, with city-wide rents down 5% QoQ, the sharpest quarterly decline in the past five years, though still 4% higher YoY. Apartments drove the quarterly decline, led by Saadiyat Island (-8% QoQ), Al Reef Downtown (-6%) and Yas Island (-3%), while Reem Island was flat and Al Raha Beach edged up 1%. Villa rents remained more stable. Saadiyat Island and Al Reef Villas were unchanged, Yas Island eased 1%, and Al Raha Gardens (+1%) and Khalifa City (+5%) recorded gains. The recently introduced rental freeze follows several years of strong rental growth and is expected to give tenants more certainty and support a more stable leasing environment, while underlying demand remains healthy.
