UAE real estate market enters balanced phase amid luxury growth

The United Arab Emirates real estate market is entering a more balanced phase, characterized by robust fundamentals and high demand in the luxury sector. In Abu Dhabi, the market is showing signs of normalization. While apartment sale prices rose 19 percent year-on-year and villa prices increased by 10 percent, the residential leasing market saw a slight quarterly decline, with apartment rents down 2 percent and villa rents down 3 percent.

In Dubai, the ultra-luxury residential market continues to reach record levels. High-net-worth individuals are driving demand for exclusivity and waterfront lifestyles. Notable transactions include an annual rental deal for a palace in Emirates Hills valued at 17 million dirhams and a sale in the upcoming Palm Jebel Ali project worth 34 million dirhams. Popular locations for luxury searches include Palm Jumeirah, Bluewaters Island, and District One.

In Abu Dhabi, approximately 2,200 residential units were delivered in Q2 2026, with an estimated 3,200 more scheduled for the remainder of the year. Additionally, the Abu Dhabi Real Estate Centre (ADREC) has introduced a rental freeze on residential and commercial lease renewals and new contracts.