Abu Dhabi real estate outlook 2026 points to steady growth, supported by vigorous non-oil economic activity, population inflows and limited new supply. Favorable conditions are forecast across the residential, office and hospitality sectors, with prices and rents continuing to rise at a measured pace.
Residential capital values are projected to increase by 16 per cent, while rents are expected to grow by around 6 per cent. Apartments are forecast to outperform villas, as affordability pressures build in the villa segment and demand shifts toward more convenient, lifestyle-oriented housing. Supply remains constrained, with actual residential handovers expected to stay well below planned levels.
The office market is set to remain tight, particularly for Grade A space, where demand continues to exceed supply. Office rents are projected to rise by more than 20 per cent in prime locations.
Hospitality performance is also expected to improve in 2026, supported by new hotel openings and stronger seasonal demand, aligning with Abu Dhabi’s long-term tourism strategy.
Key Market Expectations for 2026:
| Segment | Key Trend | 2026 Outlook |
| Residential | Prices and rents rising amid tight supply | Capital values +16%, rents +6%, occupancy ~90% |
| Apartments vs Villas | Apartments outperforming villas | Higher price growth for apartments due to affordability and lifestyle demand |
| Office | Demand exceeding Grade A supply | Capital values +10%, rents +20%+, occupancy ~93% |
| Hospitality | Performance improving with new hotel openings | Occupancy ~82%, ADR Dh551, RevPAR Dh452 |
| Industrial / Logistics | Strong investor and tenant demand | Rental growth supported by limited supply and e-commerce |
| Retail | Pressure from online shopping | Softer rents and higher vacancies in some malls |
| Macro Environment | Supportive economic backdrop | GDP growth ~5%, inflation ~2%, population ~4.5m |
