Hudayriyat Island was the leading area for real estate transactions, recording deals amounting to approximately AED11.97 billion
The Abu Dhabi Real Estate Centre (ADREC) reported on Tuesday that total transaction value in the emirate’s real estate sector reached AED66 billion ($17.97 billion) in the first quarter of 2026, representing a 160.7 percent increase across 13,518 deals, compared to AED25.31 billion from 6,896 transactions in the same period of 2025.
“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,” said Rashed Al Omaira, Director General of ADREC.
Hudayriyat Island leads transactions in Q1
Sales and purchases in Abu Dhabi’s real estate market totaled AED50.97 billion through 8,940 transactions, reflecting a 228.6 percent increase in value and a 134 percent rise in volume compared to the first quarter of 2025.
Mortgage transactions also reached AED15.03 billion through 4,578 transactions, representing a 53.4 percent increase in value and a 48.8 percent rise in volume year-on-year.
Hudayriyat Island was the leading area for real estate transactions, recording deals amounting to approximately AED11.97 billion. It was followed by Reem Island, with AED9.45 billion, and Saadiyat Island, with AED8.8 billion, while Yas Island recorded activity exceeding AED5.5 billion in transactions.
“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,” added Al Omaira.
Development pipeline continues to grow with 16 new real estate projects
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 percent 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 percent 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 percent. Meanwhile, supply is projected to grow further in 2027, reaching 333,564 units. This reflects a market that continues to expand on solid foundations.
FDI grows 423 percent to AED8.27 billion in Q1
The report also highlighted exceptional growth in Foreign Direct Investment (FDI) in Abu Dhabi’s real estate market, with total investments by individuals reaching AED8.27 billion, marking a 423 percent increase compared to 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 percent of total investment value, surpassing AED36.4 billion out of a total AED43.59 billion. This represents a 242 percent 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.
ADREC continues to implement regulatory measures aimed at enhancing transparency, supporting balanced growth and maintaining market stability.