UAE Real Estate Sees Growth in Q1

The UAE real estate market is experiencing a phase of balanced and sustainable growth, according to a Colliers report on the first quarter of 2026. This growth is attributed to the UAE's strong economic fundamentals and ongoing infrastructure projects, alongside shifts in investor and tenant behavior. The report highlights the increasing importance of asset quality and submarket dynamics in shaping market performance.

Abu Dhabi's real estate market is transitioning towards a more mature state, supported by development activity. The residential sector saw approximately 1,200 units added in the first quarter, with 7,000 more expected by year-end. The rental market showed greater stability, with average apartment rents increasing by 15% year-on-year, and villa rents experiencing modest growth. The office sector maintained strong momentum with over 95% occupancy rates and rental growth between 8% and 20%. Residential transactions and sales prices also continued their upward trend.

Dubai's real estate market is also maturing, demonstrating resilience. Apartment handovers exceeded 10,000 units for the second consecutive month, with around 1,900 villas delivered. The rental market continued its positive performance, and the sales market maintained its growth trajectory. The commercial office sector recorded notable sales growth.

The Northern Emirates are transforming into integrated residential destinations, with Sharjah leading in new unit launches. Apartment rental prices in Sharjah and Ras Al Khaimah saw slight increases, while other emirates remained stable. Al Ain's real estate market continued its upward trend, supported by strong local demand, with increases in apartment and villa rents. The retail sector also saw growth, particularly along key commercial corridors.