29/04/2026 01:28 AST
Abu Dhabi's residential property market posted its second strongest quarter on record in the first three months of 2026, underlining the depth of demand even as regional and seasonal headwinds began to temper activity toward the end of the quarter, data showed on Tuesday.
According to new data from Savills, transaction volumes in Abu Dhabi City exceeded 7,200 deals in Q1, just short of the all-time peak of more than 7,600 transactions recorded in the final quarter of 2025. Activity remained robust through January and February, carrying forward the momentum built last year, although a more cautious tone emerged in March as regional geopolitical tensions escalated toward the end of February, disrupting air travel and work patterns. Seasonal factors, including Ramadan, Eid Al-Fitr and an early school spring break, also weighed on transaction activity during the month.
Despite the softer March, off-plan sales continued to dominate the market, accounting for 81 per cent of all residential transactions, up slightly from the previous quarter. Demand was driven by major project launches, with high-profile developments generating strong early sales. Apartments remained the primary driver of activity, with more than 5,200 apartment transactions recorded during the quarter, representing nearly three-quarters of total sales and marking the third consecutive quarter in which apartment volumes exceeded 4,000 units.
While off-plan activity remained heavily skewed toward primary sales, Savills noted a notable rise in resale off-plan transactions. These accounted for 15 per cent of total off-plan activity in March, up from just 4 per cent previously, pointing to an increase in investor-led reassignment deals and greater secondary market depth.
Prices continued to climb across both the off-plan and ready segments. Average off-plan sale prices rose sharply quarter-on-quarter, increasing by 39 per cent to Dh23,067 per square metre from Dh16,540 at the end of last year. The ready market also edged higher, with average prices up 2.66 per cent to Dh15,480 per square metre in Q1. Savills reported capital value growth across all key villa and apartment districts tracked during the quarter.
Ali Ishaq, Head of Residential Agency Abu Dhabi at Savills Middle East, said the headline figures should be interpreted carefully, particularly given registration lags in March. "Abu Dhabi's residential market has demonstrated remarkable resilience, delivering near-record transaction volumes in Q1 despite a complex backdrop of regional geopolitical developments and seasonal factors," he said.
He added that although transaction volumes fell 16 per cent month-on-month in March, the quarter as a whole accounted for 35 per cent of total transaction volumes recorded in 2025. "Monthly data may not fully capture underlying trends due to typical lags in registration and reporting," Ishaq noted, adding that buyer interest remained strong among both domestic and international purchasers committed to Abu Dhabi's long-term growth story.
On the supply side, developer confidence remained evident, with around 20 projects bringing roughly 4,000 residential units to the market during Q1, the majority of them apartments.
Although near-term activity may remain under some pressure as markets absorb recent external developments, Savills said Abu Dhabi's longer-term fundamentals - including infrastructure investment and cultural projects - continue to support medium-term residential demand.
Khaleej Times
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