Apartment prices in Abu Dhabi rose 24 per cent year-on-year in the third quarter of 2026, according to a new market report from real estate consultancy ValuStrat. Villa prices climbed 10.2 per cent over the same period, pushing overall residential values up by an average of 16.8 per cent annually.
Al Reef led the market's gains, with apartment prices up 36.6 per cent and villas up 26.8 per cent. Other strong performers included Al Bandar apartments, up 24.7 per cent, Al Muneera Island apartments, up 24.4 per cent, and Al Reem Island apartments, up 22 per cent, while villas on Saadiyat Island rose 9.9 per cent.
ValuStrat noted that residential appreciation gained pace through the quarter, led by apartments, while sustained business activity and a limited supply of quality office space continued to support the wider market.
Rental growth, by contrast, remained far more moderate. Average annual apartment rents rose 1.5 per cent to Dh121,500, while villa rents increased 1.8 per cent to Dh258,000, following Abu Dhabi's introduction of a temporary rent-increase cap on June 2, 2026, replacing the previous 5 per cent annual limit. ValuStrat said the capital's property market has shown resilience despite wider geopolitical uncertainty and a slowdown in activity in Dubai.