Abu Dhabi’s property market experienced a record-breaking surge in the first quarter of 2026, with total transaction values skyrocketing 160.7% year-on-year to reach AED66 billion across 13,518 deals. According to the Abu Dhabi Real Estate Centre (ADREC), sales and purchase activity alone accounted for AED50.97 billion, more than tripling in value compared to Q1 2025. Mortgage activity also grew significantly, rising over 53% to hit AED15.03 billion.
Hudayriyat Island emerged as the most active location with nearly AED11.97 billion in transactions, followed by Reem Island, Saadiyat Island, and Yas Island. Rashed Al Omaira, Director-General of ADREC, noted that these record figures reflect deepening global and local investor confidence in a market that is increasingly disciplined and focused on long-term growth rather than short-term momentum.
The leasing sector mirrored this strength, with the repeat lease price index climbing 16% annually through March. To meet this heightened demand, 16 new real estate projects were registered this quarter—a 60% increase over the previous year. Residential supply in the region is expected to grow by over 10,000 units in 2026, representing a 3.3% annual expansion that is projected to continue into 2027.
A standout feature of the report was the massive jump in Foreign Direct Investment (FDI). Individual foreign investment soared by 423% to AED8.27 billion, matching the total FDI recorded for the entire previous year in just three months. This influx came from a diverse pool of investors spanning 99 nationalities, with major contributions from the UK, India, Russia, China, and France. Investment zones remained the primary draw for international capital, capturing 84% of the total investment value.
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