The UAE real estate market posted measured, sustainable growth in the first quarter of 2026, with Abu Dhabi residential transactions surging and Dubai maintaining a heavy delivery pipeline, according to new research from Colliers and JLL (per Gulf News).
Abu Dhabi: deal volumes accelerate
Residential transaction activity in Abu Dhabi accelerated in Q1 2026, with around 7,800 deals recorded, a 10 percent increase quarter-on-quarter and a 119 percent jump year-on-year, according to JLL Research (per JLL UAE Living Market Dynamics Q1 2026). Average apartment sales prices rose 4 percent quarter-on-quarter and 32 percent year-on-year, while villa prices climbed 2 percent for the quarter and 21 percent annually.
Approximately 1,200 residential units were delivered in the capital during the quarter, with a further 7,000 units scheduled for completion by year-end. Twenty-two new projects entered the development pipeline, including nine branded residential schemes (per Zawya).
Dubai: supply pipeline at record levels
In Dubai, new apartment deliveries exceeded the 10,000-unit threshold for the second consecutive month in Q1 2026, while around 1,900 villas were handed over during the quarter (per Economy Middle East). The development pipeline remains substantial, with an additional 65,000 apartments and 12,500 villas scheduled for delivery by year-end.
The commercial segment is also tightening, with office sales showing standout growth on the back of a shortage of completed Grade A units and only a gradual increase in new launches. Rental markets recorded a 2 percent rise in average apartment rents, supported by sustained demand in the affordable housing segment (per Emirates 24/7).
Northern Emirates emerging as a destination market
The Northern Emirates are increasingly shifting from a commuter option to a destination of choice, blending affordability with community-focused developments. Sharjah recorded the highest number of newly launched units last quarter at around 1,700, followed by Ras Al Khaimah, Ajman and Umm Al Quwain (per Gulf Today).
Forecast
The overall UAE real estate market is anticipated to reach a value of around US$697.94 billion by year-end 2026, with the residential segment projected to hold a market volume of US$402.64 billion (per Statista Real Estate Outlook). Analysts forecast a steady annual growth rate of about 3.07 percent for residential between 2026 and 2031, signalling a maturing market after the exceptional momentum of 2025.
