09/07/2026 05:29 AST
Abu Dhabi's luxury waterfront residential market is expected to remain one of the UAE's strongest-performing property segments over the coming year, supported by robust investor confidence, limited supply and continued government-led economic reforms, according to the chairman of Vertix Holdings.
Speaking to Khaleej Times, Mohammed Alhababi said Abu Dhabi's economic diversification, transparent regulatory environment and continued investment in infrastructure have strengthened the emirate's appeal among both local and international investors.
"Abu Dhabi's strong economic fundamentals, including its economic diversification strategy, strong credit rating and continuous infrastructure investments, have strengthened investor confidence," Alhababi said.
"The market has also become more efficient through greater transparency, digital transformation, faster due diligence and smoother transaction processes."
According to Alhababi, Vertix Holdings has recorded a 28 per cent increase in transactions compared with the same period last year, reflecting growing momentum across Abu Dhabi's residential property market.
The broader Abu Dhabi residential market has also continued to outperform.
According to JLL, new project launches more than doubled transaction volumes in the first quarter of 2026 compared with a year earlier, underlining sustained demand despite a brief slowdown in activity during March. JLL said the decline in transactions was relatively modest, reflecting the market's resilience.
Prime waterfront communities such as Saadiyat Island, Yas Island, Al Jubail Island, Al Hudayriyat Island, Al Fahid Island and Al Ramhan Island continue to record some of the emirate's strongest price performance. JLL noted that owner-occupier-focused developments have remained more resilient than investor-led projects, while average apartment prices remained broadly stable during the first quarter.
Waterfront communities outperforming
Alhababi said waterfront developments remain among the emirate's most sought-after assets because of their limited supply and long-term capital appreciation potential.
"Waterfront properties are a scarce asset. There are only a limited number of such developments, which is why projects in areas such as Saadiyat Island, Yas Island, Jubail Island and Hudayriyat Island have experienced significant value appreciation," he said.
He added that buyers are increasingly willing to commit to premium developments based on the reputation of established developers.
"We've seen investors commit tens of millions of dirhams simply based on the developer's reputation, even before visiting the project. They trust the quality of delivery and then decide later whether to live in the property, rent it out or sell it depending on market conditions."
Alhababi expects demand for luxury homes to remain strong over the next 12 months, noting that premium properties in Abu Dhabi continue to sell out quickly following project launches.
"Abu Dhabi has a much smaller supply of premium properties compared with some other emirates, while demand remains exceptionally strong," he said.
Government initiatives such as freehold ownership and long-term residency programmes, including the Golden Visa, have also strengthened the emirate's attractiveness to overseas buyers, he added.
Flexible payments
Alhababi said flexible payment plans have become one of the biggest drivers of off-plan sales, giving buyers greater flexibility while improving affordability.
"Developers are offering more flexible payment plans, including post-handover instalments extending up to five years. This flexibility makes it easier for buyers to enter the market and supports long-term demand."
He added that tighter regulation of off-plan developments has significantly improved buyer confidence through escrow account requirements and stricter delivery standards.
Lifestyle has also become an increasingly important factor when choosing where to buy.
According to Alhababi, buyers looking for entertainment and nightlife tend to favour Yas Island, while those seeking culture gravitate towards Saadiyat Island. Entrepreneurs are increasingly choosing Al Reem Island because of its connectivity, while Hudayriyat Island is attracting buyers looking for outdoor and wellness-focused lifestyles.
Despite the strong outlook, Alhababi urged buyers to assess their finances carefully before committing to long-term payment plans.
"A good advisor can guide you, but no one should make the investment decision on your behalf. Buyers need to understand their financial capabilities and make informed choices," he said.
Khaleej Times
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