The escalation of the conflict in the Middle East in early 2026 caused turbulence in the UAE markets, especially Dubai. However, Abu Dhabi has shown great resilience due to the high share of local demand. Moreover, in the first half of March, the number of transactions in the capital more than doubled as investors shifted to a more stable market.
The price growth leader was Al Reef, where apartments rose in price by 41.6% and villas by 27.9% over the year. Significant growth was also shown by Al Muneera Island (+24.7%), Al Reem Island (+22%) and Al Bandar (+21.8%). The rental market is increasing pressure on tenants: the average annual rate has reached 163,700 dirhams, with studios rising in price by 13.8% and studio apartments by 7.7%, indicating high demand from young professionals and expats.The market is dominated by real estate transactions under construction: 6,061 transactions per quarter, which is 156% more than a year ago, and 84% of all sales. The average value of such a transaction reached 4.4 million dirhams (+25.9% per year). At the same time, sales of ready-made housing fell by 28.3% (to 1,145 transactions), although prices for it increased by 10.9%. This indicates a shift in demand to more favorable conditions in the early stages of construction amid a limited supply of ready-made facilities.
The office market is showing even more active dynamics: rent increased by 27.3% over the year, and the occupancy rate of business centers in the central business district reached 90%.
Source: Khaleej Times
