Savills’ latest research shows that underlying market fundamentals remain resilient, supported by healthy end-user demand, continued developer confidence, resilient occupier demand and the emirate’s strong long-term economic outlook.
Abu Dhabi’s residential market remained resilient during Q2 2026, with residential transaction volumes 85% higher than Q2 2025 despite moderating from the record levels seen in Q1. H1 2026 performance also remained exceptionally strong, with residential transaction volumes increasing by 107% compared with H1 2025, underlined by record off-plan activity and sustained buyer demand.
The off-plan market continued to dominate activity, accounting for 85% of all residential transactions, while roughly 2,100 residential units were launched during the quarter, reflecting continued developer confidence despite regional uncertainty. Apartments represented 78% of all residential transactions, while the quarter also recorded several landmark ultra-prime sales, including the AED 200m penthouse transaction at Four Seasons Private Residences on Saadiyat Island.
“Following an exceptional start to the year, the market has naturally transitioned towards a more sustainable pace during the second quarter. Whilst transaction volumes moderated compared with the record levels seen in Q1, Q2 residential transactions remained 85% higher than Q2 2025, while H1 2026 transaction volumes increased by 107% compared with H1 2025, highlighting the continued strength of Abu Dhabi’s residential market.
“The underlying fundamentals remain firmly intact. Demand continues to be driven by end-users and off-plan buyers, developer confidence remains high, and the pace of new project launches reflects continued confidence in Abu Dhabi’s long-term growth story. Importantly, much of the recent sales activity has yet to be reflected in official transaction data due to the lag between project launches, sales activity and transaction registration.
“Combined with continued economic diversification, population growth and investment into the emirate, we remain confident Abu Dhabi’s residential market is well positioned for continued growth over the medium term.”
Andrew Cummings, Head of Residential Agency at Savills Middle East
Residential prices remained resilient despite more measured activity. Median apartment prices eased by 6.6% quarter-on-quarter, while villa and townhouse prices recorded a more modest 3.3% adjustment. Savills notes that these movements largely reflect the mix of transactions and newly launched developments rather than a broad-based decline in underlying values.
“Whilst leasing activity moderated during Q2, this should be viewed as a temporary pause in decision-making rather than a weakening in occupier demand. Businesses remain committed to Abu Dhabi, particularly within the Grade A segment, where availability continues to be constrained.
“As regional stability improves and deferred requirements return to the market, we expect leasing activity to strengthen during the second half of the year.
“Combined with Abu Dhabi’s continued economic diversification, ADGM’s growing role as a regional financial hub and a limited supply of premium office space, these fundamentals are expected to support sustained occupier demand and rental resilience over the medium term.”
Harry Ransom, Head of Commercial Agency at Savills Middle East
Looking ahead, Savills expects both the residential and office sectors to remain well supported by Abu Dhabi’s strong economic fundamentals, continued investment, population growth and business-friendly environment.
While Q2 reflected a more measured pace following an exceptionally strong start to the year, the market continues to demonstrate resilience, with healthy demand, sustained development activity and positive long-term growth prospects across both the residential and office sectors.
