UAE real estate sector records strong first half growth driven by investment demand

The UAE real estate sector maintained strong performance during the first half of 2026, supported by growing investment demand, expanding development activity, a diversified investor base and continued enhancements to regulatory and legislative frameworks that strengthened the attractiveness of the country’s property markets.

The sector entered the second half of the year on a solid foundation of local and international demand, diversified real estate products and a growing pipeline of new projects.

Rising foreign investment and the broader range of nationalities participating in the market also reflected continued confidence in the UAE’s ability to attract long-term capital.

Data announced by real estate authorities showed strong levels of activity across several emirates between January and the end of June 2026.

In Abu Dhabi, the total value of real estate transactions reached around AED117 billion during the first half, up 112 percent compared with the same period in 2025, while the number of transactions increased by 61.7 percent.

Sales transactions led activity, reaching AED86.1 billion through 16,838 transactions, up 163.7 percent, while mortgage transactions amounted to AED26.7 billion.

Foreign direct investment in Abu Dhabi real estate reached around AED13.8 billion during the first six months of 2026, an increase of 309 percent, exceeding the total recorded for the whole of 2025.

The number of nationalities represented among non-resident foreign investors also rose to 116, while investment zones attracted around AED75 billion.

According to the Abu Dhabi Real Estate Centre’s report for the first half of the year, residential unit sales reached AED70.4 billion, while off-plan properties accounted for 89 percent of sales value and 82 percent of the total number of transactions.

Resale prices rose by 20 percent for apartments and 12 percent for villas. The number of active residential tenancy contracts reached around 233,000, while their total value stood at AED9.3 billion, up eight percent year-on-year.

Dubai’s real estate sector completed 104 projects during the first half of 2026 with a total investment value exceeding AED111 billion, compared with 75 projects worth AED73 billion during the corresponding period of 2025, representing growth of 38.7 percent in the number of projects and 52 percent in value.

The number of new real estate units rose to 24,537, an increase of more than 36 percent.

Completed and ready-for-handover construction space grew by more than 23.4 percent to 1.95 million square metres, compared with 1.58 million square metres during the same period last year.

The cost of land allocated to projects jumped by more than 135 percent to AED19.46 billion, compared with AED8.27 billion in the corresponding period of 2025. The area of land allocated to completed projects also more than doubled to around one million square metres, from 484,000 square metres in the first half of last year.

The strong performance reinforces the resilience of Dubai’s real estate sector and its importance as a key pillar of the emirate’s sustainable economic diversification drive.

The figures also highlight its position as a secure, growth-oriented destination for investors from around the world.

In Sharjah, real estate transactions reached around AED29.5 billion during the first half of 2026, up 9.3 percent, while the number of transactions increased by 23.7 percent to 59,460.

Residential properties accounted for the largest share of sales transactions, with 13,501 deals, while mortgage transactions reached AED7.6 billion.

Sharjah’s real estate sector attracted investors from 121 nationalities. UAE nationals invested around AED14.9 billion, Arab investors around AED5 billion and other nationalities around AED8.2 billion. Eleven new real estate projects were also registered during the same period.

Ajman’s real estate sector recorded 6,815 transactions worth more than AED10.8 billion, including AED7.64 billion in trading transactions and AED1.88 billion in mortgage transactions, reflecting continued diversification of activity and expanding investment opportunities in the emirate.

In Ras Al Khaimah, the value of real estate transactions between January and June reached around AED2.89 billion, including AED1.353 billion in sales through 1,274 transactions, AED1.160 billion in mortgages through 463 transactions, and around AED380 million in property transfers.