Abu Dhabi’s freehold property index rose 17.8% year over year in Q3 2026 as apartment values outpaced villas and off-plan registrations made up most residential sales, ValuStrat said.
The citywide index reached 155.8 points, up 3.1% from the previous quarter and 17.8% from Q3 2025. Apartment capital values climbed 24% year over year, compared with a 10.2% increase for villas. ValuStrat’s report summary also named Al Reef among the emirate’s high-demand communities.
Off-plan registrations accounted for 81% of residential sales volume, or 4,828 transactions. Ready-home prices averaged AED 1,401 per square foot, ValuStrat said.
A separate Q3 2026 report from Savills put average apartment values 9% above a year earlier and villa and townhouse values 8% higher. It counted 6,085 residential transactions, down 19% from Q2, with off-plan sales accounting for 81% of activity. These figures match Savills’ Abu Dhabi price comparison previously covered by EconoTimes.
The firms measure values differently. ValuStrat’s index tracks capital-value changes across a weighted, fixed basket of freehold homes, while Savills reports average values. Their public summaries do not explain why the annual growth rates differ. Earlier coverage also cited a shortage of moderately priced homes as an obstacle for families seeking to buy, alongside developers’ flexible payment terms and financing during construction.
The Abu Dhabi Real Estate Centre (ADREC) announced June 3, 2026, that permitted annual rent increases would drop from 5% to 0% for residential, commercial and industrial properties. New leases and renewals should refer to each property’s last registered Tawtheeq rent. The temporary measure remains in place until further notice.
ADREC said demand had exceeded supply for several years and occupancy had reached record highs. It also cited annual new-lease price increases of 15% across Abu Dhabi and 23% in investment zones when explaining the policy.
