2026 looks set to be a big year for offices and apartments in Abu Dhabi, as sustained demand and tight-as-ever supply are likely to push prices and values higher for the two markets, according to ValuStrat’s Abu Dhabi Market Outlook 2026 (pdf).

The office market is likely to see the biggest gain, with 20% y-o-y rental growth penciled in, while capital gains look set for a 10% y-o-y uptick. Driving the rise? A robust 93% average occupancy as firms expand and new players flock to join the scene. Just 45.2k sq ft of new stock is expected in 2026, pushing rents and prices higher still, with the grade A market staying the tightest. The new units will bring the emirate’s total stock to just shy of 4 mn sq ft.

Over on the residential side, it’s apartments’ time to shine, with the segment set to outpace villas in terms of capital appreciation, projected to rise 16%, up from 13% last year, as well as rents, set for a 6% uptick.

Thesupply pipeline? Not as bright: Some 16.6k units are in the pipeline this year, however ValuStrat sees only 6.5k actually being ready by year-end based on past delivery standards. Apartments account for 64% of pipeline units, with the remaining 36% coming from villas and townhouses.

For the industrial sector, grade A assets remain the most popular, with rent and price upticks set to continue as demand remains from manufacturing, logistics, and e-commerce players for strategically located industrial zones.

Finally, four to five new luxury hotel openings will boost the hospitality sector, with the UAE poised for steady tourism numbers from both local and international visitors. A total of 309 new keys are expected this year, with average occupancy penciled in at 82% and average daily rates at AED 551. Domestic tourists are expected to sustain occupancy for the mid-range segment.

Our take

This comes as prices in Dubai, which have been up around 70% over the past five years, finally begin to cool, with expectations of growth in the single digits, after a much faster pace of growth in recent years. Abu Dhabi in the meantime is seeing faster growth as Dubai’s market enters a phase of maturity, and the capital offers pockets of growth, especially in areas with tight supply like Yas Island and Saadiyat.

Tags: