Abu Dhabi’s real estate sector witnessed solid growth in the first quarter with its total transaction value surging to hit US $18bn representing a 160.7% increase across 13,518 deals compared to US $6.8bn from 6,896 transactions in the same period of 2025, according to the Abu Dhabi Real Estate Centre (ADREC), the regulator of the emirate’s real estate sector.
Sales and purchases totalled US $13.8bn through 8,940 transactions, reflecting a 228.6% increase in value and a 134% rise in volume compared to the first quarter of 2025. Mortgage transactions also reached US $4bn through 4,578 transactions, representing a 53.4% increase in value and a 48.8 % rise in volume YoY.
Hudayriyat Island was the leading area for real estate transactions, recording deals amounting to approximately US $3.3bn. It was followed by Reem Island, with US $2.6bn, and Saadiyat Island, with US $2.4bn, while Yas Island recorded activity exceeding US $1.5bn in transactions.
Rashed Al Omaira, Director General of ADREC said, “This quarter’s performance is a clear reflection of the confidence Abu Dhabi continues to earn from investors both locally and internationally. Reaching a record level of activity is not only a sign of demand, it signals a market that is becoming more disciplined, with a clear focus on long-term investment.”
He added, “Our role as ADREC is to ensure this growth is supported through consistent oversight and a regulatory framework that upholds trust and accountability across the sector. This is what gives Abu Dhabi its strength. It is not about short-term momentum, but a market built on strong fundamentals, positioning it as a reliable investment destination.”
Market indicators continue to show strong and sustained demand across Abu Dhabi’s real estate sector, with leasing activity maintaining growth into March. The repeat lease price index recorded a 16% annual increase compared to March 2025, underscoring continued demand from end users and investors.
While demand continues to outpace supply, the market is supported by a growing development pipeline with 16 new real estate projects registered during the quarter, a 60% increase compared to the same period last year. Residential supply in the Abu Dhabi region is projected to increase by 10,272 units in 2026, rising from 314,976 to 325,248, representing annual growth of 3.3%. Supply is projected to grow further in 2027, reaching 333,564 units. This reflects a market that continues to expand on solid foundations.
The report highlighted exceptional growth in Foreign Direct Investment (FDI), with total investments by individuals reaching US $2.3bn, marking a 423% increase compared to Q1 2025 and equivalent to the total foreign direct investment recorded during 2025. Investors from 99 nationalities contributed to this performance, up from 68 nationalities during the same period last year.
Foreign investment activity remained strong within investment zones, accounting for approximately 84% of total investment value, surpassing US $9.9bn out of a total US $11.9bn. This represents a 242% increase compared to the same period last year, with key contributing markets including the United Kingdom, India, the Russian Federation, China, Jordan, France, and Egypt.
