UAE Real Estate Market Sees Strong Growth in Q1 2026

May 20, 2026

81 min

May 20, 2026 13:32

Abu Dhabi, Dubai drive UAE real estate surge in Q1 2026 Colliers report

## Abu Dhabi's Real Estate Developments

A recent report by Colliers highlights significant growth in the UAE real estate market, particularly in Abu Dhabi and Dubai, during the first quarter of 2026. Abu Dhabi's market is evolving towards maturity, with 22 major projects, including nine branded residential developments, enhancing its appeal. The residential sector added approximately 1,200 units, with another 7,000 expected by year-end. Rental prices for apartments increased by 15% year-on-year, while mid-market developments saw over 20% growth. The villa sector experienced modest growth, with luxury communities on Yas Island seeing rental increases between 7% and 10%.

## Office Market and Transactions

Abu Dhabi's office market maintained robust performance with occupancy rates exceeding 95%. Annual rental growth ranged from 8% to 20%, supported by new developments like Shams Tower. Residential transactions rose significantly, with around 7,800 deals in Q1, marking a 10% increase quarter-on-quarter and 119% year-on-year. Apartment and villa prices also saw quarterly and annual increases.

## Dubai's Resilient Market

Dubai's real estate market continues to mature, showing resilience against short-term fluctuations. Over 10,000 apartments and 1,900 villas were delivered in Q1. The development pipeline remains strong, with 65,000 apartments and 12,500 villas expected by year-end. The rental market saw a 2% quarterly increase in apartment rents, while villa rents remained stable.

## Northern Emirates and Al Ain

The Northern Emirates are transforming into integrated residential destinations. Sharjah led with 1,700 new units, followed by Ras Al Khaimah, Ajman, and Umm Al Quwain. Al Ain's market showed steady growth, with apartment and villa rents increasing by 7% and 2%, respectively, supported by strong local demand.

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