Abu Dhabi Real Estate Prices Rise as Dubai Records a Decline

Recent real estate data has revealed a striking divergence between the Dubai and Abu Dhabi markets during the third quarter of 2026, as sales activity slows and price trends vary between the two emirates.

According to data from ValuStrat, cited in an economic report published on Friday, capital values for ready-to-move residential properties available for freehold in Dubai fell by 4.5% year-on-year, while the residential property price index in Abu Dhabi rose by 16.8% during the same period.

In Abu Dhabi, apartment prices recorded an annual increase of 24%, compared to 10.2% for villas, while the number of residential sales transactions declined by 17.3% compared to the previous quarter, to approximately six thousand transactions.

As for Dubai, it is facing a phase of rebalancing after years of real estate expansion, with a decline in sales activity, particularly for off-plan units. September data indicates a 47% annual decrease in the value of residential sales during the third quarter.

Differences in supply and demand, the profile of buyers, and the stages of the real estate cycle explain part of this divergence. However, comparisons require caution, as the two mentioned indices do not necessarily cover identical real estate categories.

These developments reveal that the UAE real estate market is not a single monolith, but rather local markets that vary in their response to economic conditions, making the choice of location and property type more critical than relying on general price trends.