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Abu Dhabi Property Market in Q3 2026: Fewer Sales, Prices Still Rising

In short

Abu Dhabi recorded AED 175.7 billion of real estate transactions from January to September 2026, according to ADREC. In Q3, Savills counted 6,085 residential sales (down 19% quarter on quarter) worth AED 21.5 billion (up 32% year on year). Volumes are slowing, but prices are still climbing: apartments are up 9% year on year.

ADREC, via IREIS Ā· Savills

AED 175.7bn

Abu Dhabi real estate transactions, January-September 2026

Source: ADREC, via IREIS

AED 21.5bn

Residential sales in Q3 2026, across 6,085 transactions

Source: Savills

AED 22,700/sqm

Average apartment price in Q3 2026, up 9% year on year

Source: Savills

81%

Off-plan share of residential transactions in Q3 2026

Source: Savills

Abu Dhabi corniche

Abu Dhabi, the Corniche.Photo: Ā© VALORISIMO

What happened in Abu Dhabi's property market this week?

Two releases came out between 19 and 23 October 2026. Together they show where the market stands after nine months.

For context, ADREC reported AED 117 billion of transactions in H1 2026, up 112% year on year (WAM, 17 July 2026). Activity is still strong, but quarterly volumes are falling.

Exchange rate used for euro figures: €1 = AED 4.12 (26 October 2026). The dirham is pegged at AED 3.6725 to $1.

What are the key Q3 2026 numbers?

The table below sets out the indicators from Savills’ Q3 report.

Indicator (Abu Dhabi residential)Q3 2026Change
Number of transactions6,085āˆ’19% QoQ, āˆ’7% YoY
Total sales valueAED 21.5bn+32% YoY
Off-plan share (by count)81%—
Average off-plan ticketAED 5m+15% QoQ, +40% YoY
Average ready-property ticketAED 2.8m—
Sales above AED 10m582+35% QoQ, +104% YoY
Rental transactions50,500+29% vs Q2 2026

Source: Savills Middle East, Abu Dhabi Market in Minutes Q3 2026 (reported by Zawya and Gulf News, 21-23 October 2026).

Buyers are buying less often, but they are spending more per deal. Value is up even as the number of deals falls. The main reason is the larger average off-plan ticket, which is now AED 5 million.

Mind the scope. ADREC counts all registered transactions, while Savills counts residential sales in the quarter, so the two do not measure the same thing. Subtracting ADREC’s H1 home sales (AED 70.4 billion) from its nine-month figure (AED 95.8 billion) gives about AED 25.4 billion of home sales in Q3, compared with Savills’ AED 21.5 billion. Do not add the two sets of figures together or compare them line by line.

Are Abu Dhabi property prices still rising?

Yes, according to Savills, but at a moderate pace.

Property typeAverage price, Q3 2026Per sq ft (about )YoY
ApartmentsAED 22,700/sqmAED 2,110/sq ft+9%
Villas and townhousesAED 18,200/sqmAED 1,690/sq ft+8%

Source: Savills Middle East, Abu Dhabi Market in Minutes Q3 2026 (Zawya, October 2026). Per sq ft values converted at 1 sqm = 10.764 sq ft.

These averages cover the whole emirate and hide large differences between areas. According to ADREC data released through IREIS, four areas account for most residential sales value:

AreaResidential sales value
Hudayriyat IslandAED 19bn (27% of total)
Saadiyat IslandAED 13.3bn
Al Reem and Al Maryah IslandsAED 10.5bn
Yas IslandAED 7.3bn

Source: ADREC, via the IREIS 2026 release (Zawya, 19 October 2026); the release does not state the period.

For area-level prices, see our analysis of Abu Dhabi property prices in 2026.

Why are off-plan and luxury dominating?

Off-plan made up 81% of transactions in the quarter, according to Savills. ADREC data quoted in the same release (period not stated) puts off-plan at 89% of residential sales value. Supply is also concentrated: the top ten developers account for 90% of off-plan primary sales, worth AED 51 billion.

Luxury is growing faster than the rest of the market. Savills recorded 582 sales above AED 10 million in Q3, twice as many as a year earlier, and 95% of them were off-plan. Rachael Kennerley, Director of Research at Savills Middle East, says: “Buyers are becoming increasingly selective, with greater emphasis on location, quality and long-term value.”

Demand is still largely international. Foreign buyers, both resident and non-resident, accounted for 70% of residential sales value in H1 2026, up from 64% in H1 2024 (Savills, ADREC).

New supply is still limited. Savills expects about 68,000 additional homes by 2030. ADREC puts the figure at 71,000, with deliveries peaking in 2028, on top of a current stock of about 409,000 homes. In Dubai, Savills counts more than 525,000 homes due for delivery between 2027 and 2030.

Is Abu Dhabi holding up better than Dubai?

The same week, Knight Frank published the opposite signal for Dubai. Prices across the emirate’s ten prime neighbourhoods fell 5% between Q2 and Q3 2026, their first decline since 2020 (The National, 21 October 2026). Sales of homes above $10 million dropped to 86 in Q3, 17% fewer than a year earlier. Palm Jumeirah prices are down 9.1% over twelve months, to AED 4,083 per sq ft. Knight Frank’s Faisal Durrani said “the biggest drag at the moment on overall market activity is the ongoing regional conflict.”

Q3 2026 indicatorAbu DhabiDubai
Residential transactions6,085 (āˆ’19% QoQ)about 34,500 (āˆ’4% QoQ)
Residential valueAED 21.5bnAED 70.8bn
Price trend+8% to +9% YoY (emirate average)āˆ’5% QoQ (10 prime neighbourhoods)
Luxury segment582 sales > AED 10m, +104% YoY86 sales > $10m, āˆ’17% YoY

Sources: Savills, Q3 2026 Abu Dhabi and Dubai reports (October 2026); Knight Frank via The National (21 October 2026). Note that the luxury thresholds differ (AED 10m vs $10m).

These numbers are not strictly comparable. Dubai has roughly five times as many transactions, and the price indicators cover different scopes. Still, the direction is clear: in 2026, Abu Dhabi prices are still rising while Dubai’s top end is correcting. For Dubai’s wider picture, see our report on Dubai’s first annual price dip since 2021.

What does this mean for an international investor?

There are three practical consequences.

1. You have more room to negotiate, but not everywhere. Lower volumes (āˆ’19% QoQ) take pressure off the resale and ready-property market. In new projects in the most sought-after areas, such as Saadiyat and Hudayriyat, the rising average ticket shows that prices are holding firm.

2. Rents are frozen, so only the property price can rise. Since 2 June 2026, ADREC has cut the cap on rent increases to 0%, with no end date announced. If you pay more for a property but cannot charge more rent, your yield falls. Base your numbers on the rent currently registered in Tawtheeq, never on a “potential” rent. The rental market is still active: there were 50,500 rental transactions in Q3, 68% of them renewals. See our guide to rental yields in Abu Dhabi.

3. Off-plan dominates, but so does concentration risk. When ten developers handle 90% of off-plan sales, the choice of developer and project matters more than the area. Check the project registration, the escrow account and the payment plan. Our guide on why buy off-plan in Abu Dhabi covers these checks.

What should you do now?

Watch out

These figures come from sources with different scopes (ADREC, Savills, Knight Frank). They describe a single quarter and do not guarantee future price trends. ADREC's rent freeze has no announced end date and reduces the yield on a property bought today. This is not tax or legal advice. French tax residents should note that the France-UAE tax treaty and French taxation apply.

Frequently asked questions

*How much real estate was transacted in Abu Dhabi in 2026?

According to ADREC, Abu Dhabi real estate transactions reached AED 175.7 billion (about $48 billion) between January and September 2026. Home sales accounted for AED 95.8 billion across 21,416 registered sales. In the first half of the year, total transactions were AED 117 billion, up 112% year on year.

Not on average. In Q3 2026, Savills recorded an average apartment price of AED 22,700 per sqm, up 9% year on year, and AED 18,200 per sqm for villas and townhouses, up 8%. What fell was the number of transactions, down 19% quarter on quarter, not prices.

Buyers are buying fewer homes, but more expensive ones. The average off-plan ticket reached AED 5 million in Q3 2026, up 40% year on year, and sales above AED 10 million doubled to 582. As a result, total value rose 32% year on year even though there were 7% fewer transactions.

The Q3 2026 data point in different directions. In Abu Dhabi, average prices rose 8-9% year on year. In Dubai, Knight Frank reports that prices in the ten prime neighbourhoods fell 5% quarter on quarter. These indicators cover different scopes, and neither market is risk-free. Compare specific areas and projects.

Yes. Since 2 June 2026, ADREC has set the cap on rent increases at 0% for residential and commercial properties, with no end date announced. If purchase prices rise while rents stay flat, your gross yield falls. Always calculate returns on the rent registered in Tawtheeq, not on an estimated market rent.

Figures are indicative as of the date shown: check them with official sources before any decision.

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