Table of Contents

The Abu Dhabi property market sold fewer homes for more money in the third quarter of 2026. Residential deals fell 7 percent from a year earlier to 6,085, Savills reported on 19 October, while sales value rose 32 percent to AED 21.5 billion. On the arithmetic of FOUAE (Founders of UAE), value per deal rose about 42 percent.

Data: Savills, ADREC, Abu Dhabi Media Office and Gulf Business, February to October 2026. FOUAE calculations are marked. This is an explainer, not investment advice.

Five numbers that explain the quarter

  • 6,085 residential deals, down 19 percent on the second quarter.
  • AED 21.5 billion in sales value, up 32 percent on a year earlier.
  • 582 homes sold for more than AED 10 million, more than double a year earlier.
  • 81 percent of deals were off-plan, in homes not yet built.
  • 70 percent of first-half sales value came from foreign buyers.

Why the Abu Dhabi property market slowed in Q3

Fewer homes changed hands in the third quarter. Savills counted 6,085 residential deals, down 19 percent on the second quarter and 7 percent on a year earlier, according to its report on Zawya.

That said, a slower quarter came after an exceptional half year. Residential sales in the first half reached AED 70.4 billion, up from AED 25.3 billion a year earlier, ADREC reported in August. That is about 2.8 times the earlier figure, on FOUAE’s arithmetic.

AED 21.5 billion: why value rose anyway

Value moved the other way. Sales reached AED 21.5 billion in the quarter, up 32 percent on a year earlier, even as deal numbers fell.

The FOUAE calculation

Value rose 32 percent while deals fell 7 percent. Dividing one by the other, 1.32 by 0.93, gives value per deal about 42 percent higher than a year earlier.

However, most of that rise reflects a change in mix. Savills puts apartment values up 9 percent and villa and townhouse values up 8 percent from a year earlier, far below 42 percent. The rest came from a shift towards higher-value off-plan and luxury homes.

Rachael Kennerley, Director of Research at Savills Middle East, saw “a shift towards higher-value purchases, particularly in the off-plan and luxury segments”. Khaleej Times reported her comments on 19 October.

The AED 10 million tier doubled

The top end of the Abu Dhabi property market grew fastest. Sales above AED 10 million reached 582 in the quarter, up 104 percent on a year earlier and 35 percent on the second quarter. About 95 percent of them were off-plan.

On FOUAE’s arithmetic, these homes were nearly one in ten deals. Because each sold for at least AED 10 million, they were worth at least AED 5.8 billion together. That is more than a quarter of the quarter’s AED 21.5 billion, assuming both Savills figures cover the same sales.

81 percent off-plan: buying homes not yet built

Off-plan sales made up 81 percent of transactions, Savills said. It put the average off-plan deal at AED 5 million, up 40 percent on a year earlier. Savills’ averages and its AED 21.5 billion total appear to use different measures, so FOUAE does not combine them.

ADREC’s director general, Rashed Al Omaira, made the same point about the first half. “The largest share of residential sales value went to homes not yet built,” he said in comments reported by Gulf Business on 20 August. ADREC put off-plan at 89 percent of first-half sales value and 82 percent of deals.

For the market, this matters because off-plan buyers pay in stages. As a result, much of today’s value turns into homes, and into developer cash, over the next few years.

70 percent foreign money in the Abu Dhabi property market

Foreign buyers now lead the Abu Dhabi property market. Resident expatriates and overseas investors made up 70 percent of residential sales value in the first half of 2026, Savills said. Two years earlier, the figure was 64 percent.

In addition, all real estate transactions reached about AED 155 billion from January to August 2026. Khaleej Times reported the ADREC figure on 3 September. That is already above the AED 142 billion recorded for all of 2025, the Abu Dhabi Media Office reported in February. On sales alone, the eight months reached AED 106.9 billion, against AED 99.4 billion for the whole of 2025, Emarat Al Youm reported.

71,000 new homes: the supply question

Supply is the main thing to watch. ADREC’s H1 2026 report, published in August, projects about 71,000 more homes by 2030, with deliveries peaking at about 21,800 in 2028. Savills puts the figure at about 68,000, mainly on Saadiyat, Al Reem, Yas and Zayed City.

On FOUAE’s arithmetic, 71,000 homes would add about 17 percent to ADREC’s stock of about 409,000 homes (H1 2026). On FOUAE’s reading, that wave could put new completions in competition with one another. Rents and resale prices will then show whether demand keeps pace.

How the Abu Dhabi property market differs from Dubai

Dubai is far bigger but is cooling faster. Savills counted about 34,500 Dubai deals worth AED 70.8 billion in the third quarter, Zawya reported on 12 October. Deals there fell 38 percent from a year earlier.

Dividing Savills’ headline totals by deal counts gives about AED 3.5 million a deal in Abu Dhabi and AED 2.1 million in Dubai, on FOUAE’s arithmetic. This is a rough guide to ticket size, not a price comparison. In other words, Abu Dhabi is a smaller market with a higher average ticket. Our analysis of Dubai property sales in 2026 and Dubai rents covers the other side.

“Dubai’s residential market is becoming more selective following several years of strong growth,” said Andrew Cummings, Head of Residential Agency at Savills Middle East.

What the Abu Dhabi property market means for founders

FOUAE’s reading, not a forecast: some firms are exposed to a segment that Savills data shows is growing. These include interior design, property management and wealth advice. Similarly, if the 2028 delivery peak arrives as ADREC projects, fit-out, furnishing and home services are the businesses most directly in its path.

For developers, the signal is selectivity. “Buyers are becoming increasingly selective, with greater emphasis on location, quality and long-term value,” Kennerley said.

The verdict on the Abu Dhabi property market

The Abu Dhabi property market is trading volume for value. Deals fell in the third quarter, yet value rose by almost a third. Off-plan homes and the AED 10 million tier drove it, with foreign capital behind them on first-half data. The next test is 2028, when the largest wave of new homes is due.

Frequently Asked Questions

Is the Abu Dhabi property market still growing?

By value, yes. Residential sales reached AED 21.5 billion in the third quarter of 2026, up 32 percent on a year earlier, Savills said. However, the number of deals fell 7 percent to 6,085, so growth came from higher-value homes.

Who is buying property in Abu Dhabi?

Foreign buyers lead. Resident expatriates and overseas investors made up 70 percent of residential sales value in the first half of 2026, according to Savills. That is up from 64 percent two years earlier.

How many new homes is Abu Dhabi building?

ADREC expects about 71,000 more homes by 2030, with deliveries peaking at about 21,800 in 2028. Savills estimates about 68,000, mainly on Saadiyat, Al Reem, Yas and Zayed City.

Sources

Sources: Savills, Abu Dhabi residential sales reach AED 21.5bn in Q3 2026, via Zawya, 19 October 2026; Savills, Abu Dhabi Residential Market Report Q3 2026; ADREC, Abu Dhabi Real Estate Market Report H1 2026, via Zawya, 18 August 2026; Gulf Business, Abu Dhabi residential sales nearly triple in first half, 20 August 2026; Abu Dhabi Media Office, ADREC records AED 142bn in transactions in 2025, 20 February 2026; Khaleej Times, Abu Dhabi property deals top Dh155 billion, 3 September 2026; Emarat Al Youm, ADREC transactions January to August, 4 September 2026; Khaleej Times, Abu Dhabi property buyers shift towards luxury off-plan homes, 19 October 2026; Savills, Dubai residential market enters period of stabilisation, via Zawya, 12 October 2026. Value per deal, the 42 percent change, the AED 10 million share and the supply ratio are FOUAE calculations. This is general information, not investment advice.

Founders of UAE (FOUAE) is an independent, digital-first business publication covering the founders, companies and economy of the United Arab Emirates. Follow FOUAE on Instagram and LinkedIn.