February 13, 2026
Real Estate
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06 mins

Abu Dhabi Property Prices 2026: Apartment & Villa Price Guide

As we move further into 2026, Abu Dhabi’s residential property market remains one of the most robust and desirable residential property markets in the Gulf for both investors and end-users.

There has been strong price appreciation, a strong demand for rentals and an overall limited number of available residential properties in the key market segments.

Therefore, it will be important to understand the most current pricing trends for apartments and villas in Abu Dhabi if you intend on purchasing, investing, or leasing a residential property in the UAE capital during 2026.

Current Market Snapshot: How and Why Have Prices Increased?

Abu Dhabi’s residential property market has experienced continued appreciation over the past number of years.

The price growth is primarily related to strong demand for residential properties; ongoing diversification of the Emirate economy and ongoing government infrastructure investments.

According to available market data, the overall average residential price in the Emirate has increased since 2016 by approximately 15% to 30%, with a number of key periods in which the averages in all two major property types have burgeoned by double digits per year.

Both apartment and villa prices have enjoyed this growth but will be impacted differently depending upon the location and type of property.

Overall, the residential market segment will enter 2026 with continuing momentum supported by tight supply conditions and solid fundamentals driving demand.

2. Apartment Prices in 2026

The majority of individuals in Abu Dhabi go for apartment living as their preferred option for their residence.

This makes up a large number of transactions and new housing developments in Abu Dhabi. Many purchasers choose apartments due to their relative low cost of entry into the market, the way they fit into their lifestyle, and their close proximity to urban amenities.

Price Range by Unit Type (as of early 2026):

Property Type	Average Price (AED)
Studios	550,000
1-Bedroom Units	850,000
2-Bedroom Units	1,350,000
3-Bedroom Units	2,100,000

The three ranges provide a diverse selection of first-time buyers, expatriates, and family units that seek to live in the City.

Metric / Location	Price (AED/sq ft)
Typical Range (Secondary Market Data)	1,130 – 1,365
General Average (All Residential Types)	1,230
Premium Locations	1,296

Top Apartment Locations

The Major Apartment Locations Comprised of the following:

Neighborhood / Area	Key Feature / Appeal
Al Reem Island	Desirable waterfront living with significant rental demand
Al Ghadeer & Khalifa City	Offer value-oriented options for buyers
Saadiyat Island & Al Raha Beach	Premium lifestyle with higher pricing
Masdar City	Emerging environmentally sustainable community

These locations are characterised by a blend of Affordable, Accessible and Desireable lifestyle offerings and connection.

Villa Prices in 2026

In Abu Dhabi, Families, and other luxury buyers searching for home with enough living space, are willing to spend time living in a villa and are drawn to all the community amenities that accompany and surround villa life.

Because of their relatively small proportion of the entire real estate market dominated by apartments, villas account for a relatively small portion of total sales transactions.

However, the sale prices for quality villas have continued to generally increase over time, especially in prime and suburban neighborhoods.

Below is more detail about average villas and prices by community.

Villa Price Range

Market research indicates that average values for villas can be outlined as follows:

4 bedroom villas: are selling for an average to approximately AED 3.8 million.
Luxury Villas: Typically range in price from AED 8 million to AED 25 million+, depending on the materials or finish used and where the villa is built or located.

At the luxury price segment (AED 8 million +), the competition is very robust among all waterfront areas within the master planned community of Abu Dhabi.

Two locations that have been built as luxury waterfront based communities are Saadiyat Island (Cultural Center of UAE) and Yas Island (World Class Race Track), resulting in some of the highest sales prices for any villa within Abu Dhabi’s communities.

Villas generally cost less than apartments on a per square foot basis; therefore, the same quality villas are generally selling for upwards of AED 1,100/sf in multiple desirable communities.

Prime community/villa location

Villa communities that are experience strong market upward growth due to continued market opportunity are:

Al Raha Gardens and Al Reef – very desirable family communities with an affordable price
Khalifa City A/B – communities that offers excellent lifestyle and investment opportunities
Yas Island and Saadiyat Island – luxury destination communities with an attractive price
Al Ghadeer and Al Samha – Suburban communities have been viewed to be experiencing increased numbers of potential buyers

Expected Changes in Prices and Future Trends

Here’s an breakdown of expected changes in the prices and future trends in the Abu Dhabi real estate market:

Projected Growth of Home Prices in Abu Dhabi

Prices for homes should continue to increase through 2026. Some projections say average home prices will go up about 16% this year and accelerate their performance compared to previous years.

Offered Price Growth Expectations for Homes Still to be Built

Projections for future development suggest modest growth in off-plan price increases in both existing and new developments during 2026; expected increases between 3% and 6% on average for new projects and approximately 3% to 5% for the resale of existing homes. The development of off-plan properties does not appear to have a significant impact on the resale market price of homes because the majority of home buyers are currently purchasing from existing inventory.

Real Estate Market Supply vs Demand

There are many homes (tens of thousands) expected to be completed between now and 2028, but the actual number of completed homes is lower than anticipated. As a result, there are still significant upward price pressures.

Homeowners can find that there is very little rental supply available compared to existing demand which gives home renters and builders great opportunity to invest in the rental market.

Rent Vs Own Property: Future Price Trends of Rental Homes

Sales prices have increased parallel to rent prices for all types of housing for numerous years, but the level of price increases are dependent on property type:

Larger apartment units typically have an annual asking rent that begins at six figures.

Annual average rents for four or five bedroom homes are typically greater than AED 245,000.

The gross yield for rental apartments are typically in the 8% range while for rental houses it does not reach the 8% gross rental yield; reflecting that there is a large rental demand within the prime areas of Abu Dhabi.

Buyer & Investor Insights

Top Strategies for Investing in Abu Dhabi Real Estate in 2026

Areas that are Value Driven: Houses in Abu Dhabi are priced relatively low for the space they occupy because they are located many miles away from the centre of the city and still have a good supply/demand balance too.
Investment Opportunities: Waterfront/mater planned developments which have significant projected increases in future sales and rental incomes (Saadiyat island and Yas island).
When to Invest: With the current trends of low supply of housing versus increasing demand, time is still on your side to consider buying real estate ahead of projected price increases expected to occur beginning in early 2026.

The Bottom Line

The Abu Dhabi real estate market will continue to exhibit strong growth through the year 2026, with the possibility for apartment and villa price increases to remain solidly in place.

While apartments will likely remain very generally more affordable, villas will typically lead the way in terms of providing long term value, as such, buyers have multiple real estate options available to meet their individual needs, budgets and goals/lifestyle preferences.

With available supply remaining extremely limited, and with today’s current high occupancy levels in all segments of the Emirate of Abu Dhabi Real Estate Market, it appears prices will continue to experience major long-term increases, primarily benefiting Investment Buyers as well as Owner Occupied Buyers looking to utilise properties for rental income or long-term value appreciation throughout 2026 and thereafter.

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