The UAE real estate market entered a more measured and mature phase in the first quarter of 2026 after the rapid expansion seen in 2025, according to a market report released by Colliers.
The report said the market continues to be supported by strong fundamentals and ongoing infrastructure investment, while asset quality, submarket performance, and changing investor and occupier behavior increasingly shape performance across the country.
Abu Dhabi Market Maintains Strong Momentum
Abu Dhabi’s residential sector added about 1,200 units during the first quarter, with another 7,000 units scheduled for delivery by the end of 2026, the report said.
Development activity reached record levels, with 22 projects added to the pipeline, including nine branded residential developments.
Apartment rents across Abu Dhabi rose 15% year-on-year, while mid-end developments recorded gains exceeding 20%. Villa rents increased 1% quarter-on-quarter and 6% annually, with higher-quality communities on Yas Island posting gains of between 7% and 10%.
The office market remained strong, with occupancy exceeding 95% and rents across all grades increasing between 8% and 20% annually.
The report said commercial office supply increased with the completion of Shams Tower on Al Reem Island, while Masdar City Square and The Link were nearing completion and already attracting occupier interest.
Residential transaction volumes in Abu Dhabi climbed to around 7,800 deals in the first quarter, up 10% quarter-on-quarter and 119% year-on-year. Apartment and villa sale prices rose 4% and 2% quarterly, while annual increases reached 32% and 21%, respectively.
Dubai Supply Pipeline Remains Large
Dubai’s real estate market also continued transitioning toward a more mature growth phase while remaining supported by infrastructure spending and strong market fundamentals, the report said.
Apartment deliveries exceeded 10,000 units for the second consecutive month during the quarter, while around 1,900 villas were completed.
An additional 65,000 apartments and 12,500 villas are scheduled for delivery by year-end, although some projects may extend beyond 2026.
Apartment rents rose 2% quarter-on-quarter, supported by demand for affordable housing, while villa rents remained broadly stable as tenants adopted a more value-focused approach.
The report said residential and commercial sales continued growing, although completed apartment and villa transaction activity declined during the quarter.
Average prices across residential and office assets continued increasing, with office sales recording particularly strong growth due to limited Grade A commercial supply.
Northern Emirates Growth Moderates
The Northern Emirates market continued shifting from a commuter-focused housing alternative toward a destination offering modern, community-oriented developments, according to the report.
Sharjah recorded the largest number of newly launched residential units at around 1,700, followed by Ras Al Khaimah, Ajman, and Umm Al Quwain.
Rental growth moderated during the quarter after stronger expansion in recent years. Apartment rents in Sharjah and Ras Al Khaimah rose 1% to 2% quarter-on-quarter, while rents in Ajman, Fujairah, and Umm Al Quwain remained stable.
Developers completed more than 1,100 apartments and 320 villas across projects including Aljada, Sharjah Sustainable City, and Al Zahia, while approximately 12,000 units remain in the 2026 pipeline.
Al Ain Market Driven By Local Demand
Al Ain’s property market continued to be supported by locally driven demand, the report said.
Apartment rents rose 7% year-on-year, while villa rents increased 2%.
Office rents outside the central business district remained broadly unchanged, although Khalifa Street and Main Street recorded annual increases of 1% and 6%, respectively. Retail rents across the city rose 5% annually, with the strongest gains concentrated along the Khalifa/Main Street corridor.
