Abu Dhabi’s real estate sector witnessed solid growth in the first quarter with its total transaction value surging to hit AED66 billion ($18 billion) representing a 160.7% increase across 13,518 deals compared to AED25.31 billion ($6.8 billion) 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 AED50.97 billion 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 AED 15.03 billion through 4,578 transactions, representing a 53.4% increase in value and a 48.8 % rise in volume year-on-year.
Hudayriyat Island was the leading area for real estate transactions, recording deals amounting to approximately AED 11.97 billion. It was followed by Reem Island, with AED 9.45 billion, and Saadiyat Island, with AED 8.8 billion, while Yas Island recorded activity exceeding AED 5.5 billion 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 AED 8.27 billion, marking a 423% increase compared to the 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 AED 36.4 billion out of a total AED 43.59 billion. 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.