ValuStrat’s Abu Dhabi Market Outlook 2026 forecasts residential capital value growth of around 16% in 2026, up from 13% the previous year, as the market builds on improving confidence, resilient demand, and ongoing maturity. A shift in performance dynamics is emerging, with apartments expected to outperform villas in capital appreciation as demand for modern apartment communities and value-led lifestyle features strengthens. In ValuStrat’s base case, average residential rents are projected to rise by around 6% in 2026, with apartments recording stronger rental growth as villa rents approach affordability constraints. In the office market, Grade A space remains constrained, reinforcing expectations of rental growth of up to 20% in prime, well-connected business districts.

Haider Tuaima, Managing Director and Head of Real Estate Research at ValuStrat, said:

“Abu Dhabi enters 2026 with stable macroeconomic foundations and positive market sentiment, providing a supportive backdrop for the emirate’s real estate sectors. Strong non-oil activity and continued population growth underpin demand across residential, commercial, industrial, retail and hospitality assets. These structural drivers, combined with measured levels of upcoming supply, position Abu Dhabi for another year of steady market performance and sustained investor interest.”ValuStrat expects Abu Dhabi’s residential sector to continue its upward trajectory in 2026, with capital value growth projected at around 16%, accelerating from 13% in 2025. The outlook highlights a shift in market dynamics, with apartments projected to outperform villas as buyers increasingly prioritise value, convenience, and lifestyle features offered by modern apartment communities.

Rentals: continued growth, led by apartments

Rental performance is expected to remain positive in 2026. In ValuStrat’s base case, average residential rents are projected to increase by around 6%, with apartments expected to record stronger rental growth as villa rents approach affordability constraints. The outlook also notes that while the 2026 development pipeline includes a sizeable number of units, actual handovers are expected to be materially lower, consistent with historical delivery patterns, suggesting continued supply tightness across several submarkets.

Offices: demand momentum remains firm as Grade A supply stays tight

Abu Dhabi’s office market is expected to maintain strong demand momentum in 2026 as the emirate attracts new businesses and existing occupiers expand or consolidate operations. Grade A space remains particularly constrained, with limited new supply scheduled for delivery in 2026. This imbalance is expected to reinforce rental growth of up to 20%, especially in prime and well-connected business districts. Prices are also expected to rise, supported by sustained demand for high-quality workspaces, as occupiers increasingly prioritise building quality, operational efficiency, and location.

Hospitality: positive outlook supported by new openings and seasonality

The hospitality sector is positioned for a positive year ahead, supported by an expanding pipeline of four- and five star hotels. New openings in 2026 are expected to enhance Abu Dhabi’s tourism offering and support the emirate’s Wednesday, 28th January 2026

long-term visitor growth strategy. Key performance indicators, including occupancy, ADR, and RevPAR, are expected to improve further, driven by favourable seasonality and rising tourism activity. The outlook notes that the mid affordable segment is likely to continue benefiting from strong domestic demand, while rising international visitor numbers are supporting luxury and upscale hotels.

About VPI:

The ValuStrat Price Index (VPI) regularly marks to market a sample of properties that represent more than 90% of Abu Dhabi’s residential market and is built by our expert RICS Registered Valuers.

To learn more about ValuStrat's real estate research outputs, please visit ValuStrat's Insights Webpage.

About ValuStrat:

ValuStrat is an international consulting group providing Advisory, Valuations, Research, Transaction Advisory, Due Diligence, and Industrial Consulting across multiple sectors. With 45+ years of experience, a network of 17 offices in five countries, and a client base of 1,000+ organisations, ValuStrat supports governments, financial institutions, corporates, and SMEs.

The firm is one of the oldest valuation practices in the Middle East, a preferred provider to 120+ financial institutions in EMEA. It is ranked in the top category by the Dubai Land Department (DLD) and the Real Estate Regulatory Authority (RERA). Its consulting services in Strategy, M&A, Real Estate, and Banking have been recognised by Consultancy ME for two consecutive years.

Media contacts:
Press enquiries: Saadain Lari, Director and Head of Marketing, ValuStrat, saadain.lari@valustrat.com Research enquiries: business.enquiries@valustrat.com
Website: valustrat.com