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The UAE real estate sector showed robust growth in the first quarter of 2026, driven by rising transaction volumes across Abu Dhabi and Dubai, the central bank said.
Sustained demand from international investors and a growing local population supported this expansion, it said in its quarterly report this week.
The market also continued to attract significant capital inflows, supported by rental yields that remain attractive relative to those in other major global cities.
The report showed that the Abu Dhabi residential real estate sector experienced accelerated transaction volumes from mid-2025 through the first quarter of 2026, reaching a 119.6 percent year-on-year (YoY) increase.
“This expansion occurred across all property types and sales segments. Driven by sustained demand for new developments in Abu Dhabi's premium locations, apartment and villa sales expanded by 129.8 percent YoY and 99.6 percent YoY, respectively.”
The off-plan sector recorded the most significant growth, with apartment sales rising by 180.6 percent YoY and villa sales increasing by 175.5 percent Y-o-Y, the report noted.
Dubai also maintained strong growth momentum during the first quarter of 2026, registering a total transaction value increase of 30.3 percent Y-o-Y, it said.
Transactions rose across various categories, with apartment sales being the biggest contributor with 11.3 percent Y-o-Y growth, whereas villa transactions increased 9.3 percent Y-o-Y. The off-plan segment again played an important role, with apartment and villa transactions increasing by 20.9 percent and 19.0 percent Y-o-Y, respectively, supported by sustained investor confidence and continued demand across the emirate.
(Writing by N Saeed; Editing by Anoop Menon)
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