In Q2 2026, the ValuStrat Price Index (VPI) for Abu Dhabi’s freehold residential market reached 151.1 points (Q1 2021 = 100), recording a 2.1% quarter-on-quarter increase and a robust 17.8% annual growth. While capital values continued their upward trajectory, the pace of quarterly appreciation slowed to its weakest level in two years, signalling a gradual market moderation following an extended period of rapid growth.
“In the second quarter of 2026, Abu Dhabi’s residential market continued its expansionary trend in general. While capital value growth has naturally moderated to 2.1% quarterly following several quarters of rapid appreciation, annual gains remain solid at 17.8%.
“Compared to Dubai, the capital remains at an earlier stage in its property cycle, where accessible price points continue to anchor strong end-user demand. Historically, while Abu Dhabi and Dubai do not move in exact synchrony, they follow long-term macro trends, and sentiment shifts in the capital typically unfold at a more measured pace.”
Haider Tuaima, Managing Director and Head of Real Estate Research, ValuStrat
Apartments continued to outperform villas during Q2 driven by strong domestic demand for strategically located communities offering ready units. The apartment VPI increased 2.9% quarter-on-quarter and 24.1% annually to 147.5 points. By comparison, the villa VPI rose 1.3% quarterly and 12.0% year-on-year to 154.8 points.
Within the apartment segment, Al Reef posted the highest annual capital growth at 41.6%, followed by Al Muneera Island (24.7%), Al Reem Island (22.0%), Al Bandar (21.8%), and Saadiyat Island (18.3%). In the villa segment, Al Reef also topped performance with a 27.9% annual surge, followed by Saadiyat Island (12.0%) and Al Raha (4.6%).
“From a valuation practice perspective, we are seeing end-user demand for ready residential inventory hold remarkably firm, particularly in strategically located apartment masterplans where supply remains controlled, while the newly introduced 0% rent cap adds an important layer of market stability.
“In the commercial sector, prime office space continues to see sustained business activity alongside limited availability of high-quality stock, driving asking rents up 27.3% annually and maintaining CBD occupancies around 90%.
“Simultaneously, our real estate valuation and research teams are observing a pronounced two-tier dynamic in the industrial market, modern Grade A logistics facilities and specialised industrial assets in hubs like KEZAD are operating near full capacity at 98% occupancy, pushing upper-tier rental rates up 6.4% year-on-year.
“As we support financial institutions, investors, and corporate clients across Abu Dhabi and the wider region, the emirate’s strong economic diversification, active business license expansion, and proactive policy measures continue to reinforce long-term market confidence.”
Sean Swinburne, MRICS, Director of Valuation and lead for property valuations in Abu Dhabi, ValuStrat
Abu Dhabi’s residential rental VPI reached 128.6 points, remaining stable quarter-on-quarter while registering a 4.7% annual increase. Apartment asking rents averaged AED 122,500 per annum (+5.0% YoY), while citywide villa asking rents averaged AED 260,000 per annum (+4.4% YoY). Overall average residential asking rents stood at AED 163,700.
On June 2 2026, Abu Dhabi implemented a temporary 0% rent increase cap, replacing the previous 5% annual limit on residential, commercial, and industrial properties until further notice.
