UAE Real Estate Sector Posts Record Q1 2026 Performance Across Abu Dhabi, Dubai, Sharjah, Ajman
Image: Global Times

UAE Real Estate Sector Posts Record Q1 2026 Performance Across Abu Dhabi, Dubai, Sharjah, Ajman

23 April, 2026.Business.5 sources

Key Takeaways

  • Dubai office rents rose 14% year-on-year in Q1 2026.
  • UAE real estate remained resilient in Q1 2026 amid regional tensions.
  • CBRE reported stability and growth potential across UAE real estate in Q1 2026.

Record Q1 property surge

In Dubai, the Dubai Land Department reported 718,160 real estate transactions recorded in the first three months of 2026, including 60,303 disposals, marking a 6 percent increase compared to the same period in 2025.

Image from @globaltimesnews
@globaltimesnews@globaltimesnews

Abu Dhabi recorded its highest quarterly performance on record, with real estate transactions surging 160.7 percent to AED66 billion, compared to AED25.31 billion during the same period last year, according to the Abu Dhabi Real Estate Centre (ADREC).

In Sharjah, real estate trading volume reached AED18.5 billion during the first quarter of 2026, compared to AED13.2 billion in the same period of 2025, representing a growth rate of 40.7 percent.

In Ajman, the total value of real estate transactions during the first quarter reached AED6.22 billion through 3,890 transactions, marking a 12 percent increase compared to the same period last year, while trading volume amounted to AED4.24 billion through 3,128 transactions.

The Global Times framing ties the quarter’s growth to “robust performance” and “growing confidence among local and international investors,” while also emphasizing the market’s “capacity to sustain growth and deliver rewarding returns over the medium and long term.”

Office rents rise as supply tightens

Alongside transaction growth, the UAE’s office market remained tight on limited new supply deliveries in the first quarter of 2026, supporting rent increases in both Dubai and Abu Dhabi.

CBRE Middle East’s UAE Real Estate Market Review, as quoted by Economy Middle East and Arab News, said average office rents in Dubai rose 14 percent year-on-year, while prime rents increased by 16 percent, with occupancy holding at approximately 95 percent.

Image from Arab News
Arab NewsArab News

The same CBRE review said Abu Dhabi’s office market recorded similar strength, with occupancy rates reaching 98 percent and average rents rising 12 percent year-on-year.

CBRE attributed the rental performance to “structural undersupply across various asset classes” and to “limited new supply deliveries,” while also pointing to the UAE’s “pivotal role as a destination for international capital.”

Matthew Green, Head of Research at CBRE MENA, said: “Recent geopolitical developments have undeniably influenced sentiment and short-term activity, but the UAE real estate market has showcased its inherent stability.”

The reports also described how some multinational occupiers temporarily shifted to remote working or delayed expansion decisions, even as the shortage of Grade A space in key business districts helped underpin rental performance.

Residential moderation and record activity

In Dubai, the reports said the residential real estate market entered a temporary phase of moderation after several years of rapid growth, with rental increases easing to 4.1 percent year-on-year and sales price growth slowing to around 9 percent.

Economy Middle East and Arab News both said transaction volumes remained elevated for the quarter overall, but activity declined noticeably in March as buyer sentiment softened.

The CBRE report described off-plan transactions as continuing to dominate, particularly in the mid-market segment, while investor behavior showed early signs of caution amid stabilizing yields.

By contrast, Abu Dhabi’s residential market saw a sharp increase in activity, driven by high-value off-plan sales and strong demand for luxury projects, with transaction volumes rising year on year in the first quarter and total transaction values reaching record levels.

The reports added that residential prices continued to climb, led by apartments, while rental growth showed early indications of deceleration.

Geopolitical tension and remote work

The Q1 2026 property picture was reported against a backdrop of regional conflict and geopolitical tensions, with CBRE’s commentary used to connect those pressures to sentiment and short-term activity.

Arab News said the UAE’s real estate sector remained resilient in the first quarter of 2026 “despite conflict in the Middle East,” while office markets stayed tight due to limited new supply.

Image from Fintechgate
FintechgateFintechgate

It also reported that in March, several multinational giants, including Amazon, Google and Citigroup, as well as JPMorgan, activated remote work protocols to mitigate the impact of the war in the region.

Economy Middle East similarly said the UAE real estate market remained resilient “despite heightened regional geopolitical tensions and a softer economic outlook,” and it described how some multinational occupiers temporarily shifting to remote working or delaying expansion decisions fit into the office-market dynamics.

Fintechgate’s version of the CBRE report added a macro-finance layer, saying the report noted a revision to the UAE’s 2026 GDP growth forecast to 0.3% and that the economy remained shielded from sharper near-term effects thanks to inflation containment measures, ample liquidity, and effective policy support from the banking system.

Across the accounts, Matthew Green’s line—“Recent geopolitical developments have undeniably influenced sentiment and short-term activity, but the UAE real estate market has showcased its inherent stability”—served as the central interpretive statement.

Hospitality, retail, and logistics momentum

Fintechgate said the UAE hospitality sector performed strongly throughout 2025 and into early 2026, with Dubai closing 2025 with a record 19.6 million visitors, up 5% year over year, and it reported that Dubai achieved an occupancy rate of 80.7% and RevPAR up 11% in 2025.

Image from Global Times
Global TimesGlobal Times

It also said Abu Dhabi welcomed nearly 6 million visitors and posted a 19% increase in RevPAR, while Ras Al Khaimah hosted 1.36 million visitors with a 12% rise in revenue.

The report described momentum continuing into early 2026, with Dubai welcoming 2 million visitors in January and with occupancy at 86%, and it said the hospitality market operated near peak levels in January and February 2026 with an average occupancy of 85%.

For retail, Fintechgate said the UAE retail market faces “sudden shifts in consumer behavior and a slowdown in international tourism,” while premium shopping center assets continued to perform strongly, with occupancy remaining high at 98% in Dubai and 95% in Abu Dhabi.

On industrial and logistics, the report said the sector continued to perform well, supported by strong demand and tight supply, with Dubai recording “double-digit rental growth” and Abu Dhabi seeing steady increases across its main industrial hubs.

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