Abu Dhabi's Rental Market Soars: Trends and 2026 Forecast

The real estate boom in Abu Dhabi is expected to continue into 2026, with rental demand remaining stable throughout 2025. According to the Abu Dhabi Real Estate Market Report for 2025, released by PropTech portal Bayut, there has been a notable increase in rental prices, particularly in the affordable apartment sector, where rents have risen by 8% to 30%. Additionally, villa rents have increased by up to 16% in the same period.

Other studies suggest that rental growth will slow down in 2026 compared to the previous years. However, the market is expected to remain tight due to high demand and limited supply.

Preferred Locations

Affordable communities such as Khalifa City and Al Shamkha have remained popular for both apartments and villas, according to the Bayut report. In the mid-tier segment, Al Reem Island and Al Khalidiya have been sought-after locations for apartments, while Shakhbout City and Al Raha Gardens have been in high demand for villas. At the premium end, Al Raha Beach and Yas Island have been the top choices for apartments and villas, respectively. Saadiyat Island continues to attract demand across all luxury categories.

Rental Trends in 2025

The affordable apartment category saw a significant rise in rents, ranging from 8% to 30%. The sharpest increase was recorded in Al Nahyan, indicating a strong preference for well-connected yet affordable locations. In the mid-tier segment, apartment rents climbed by 25%, driven by notable price growth in Al Reem Island and Hamdan Street.

In the luxury segment, apartment rents have increased by as much as 32%, primarily due to high demand for one-bedroom units in Al Raha Beach and Saadiyat Island. As for villas, there was a 16% increase in the affordable segment, while mid-tier villa rents have grown by 1% to 13%. Luxury villa rents have also generally increased, rising by 6% to 16% across key locations. However, five and six-bedroom units in Yas Island and Saadiyat Island have seen corrections of up to 9%.

Market Outlook for 2026

Analysts predict that the property market in Abu Dhabi will remain tight, with higher demand and limited supply. Residential prices are expected to rise by about 30% year on year in December, and rents are forecasted to increase by 23%. Additionally, it is anticipated that approximately 6,500 new residential units will be delivered in Abu Dhabi in 2026.

This forecast indicates a continued strong performance in the Abu Dhabi real estate market, driven by ongoing economic growth and strategic developments in key areas. Investors and property seekers should be prepared for a competitive market with rising prices and limited availability.