Colliers' Q2 2026 report finds the UAE property market entering a more balanced phase, with quarterly price and rent adjustments across Abu Dhabi, Dubai and the Northern Emirates, even as annual growth stays firmly positive.
September 02, 2026 | Tripti Mehta | UAE | Real Estate | 4 Min Read
The UAE property market is settling into a steadier rhythm after several years of rapid expansion, according to Colliers' latest quarterly review, which points to sector, location, product quality and pricing as the factors now driving performance across Abu Dhabi, Dubai, the Northern Emirates and Al Ain.
Abu Dhabi and Dubai See Quarterly Cooling, Annual Gains Hold
In Abu Dhabi, roughly 2,200 residential units were handed over during the quarter, concentrated in Al Shamkhah's Reeman Living, Yas Island, Bloom Living in Zayed City and Al Raha Beach, with a further 3,200 units expected by year-end. The leasing market cooled after an extended run-up through 2025 and early 2026: apartment rents eased 2 per cent quarter-on-quarter and villa rents 3 per cent, concentrated among larger units and previously fast-rising developments. On an annual basis, though, momentum remains intact, with apartment rents still 7 per cent above year-ago levels and villas up 5 per cent. ADREC's newly introduced freeze on residential and commercial lease renewals shaped much of the quarter's activity, with renewals dominating leasing volumes as tenants stayed put.
Sales pricing told a similar story of quarterly cooling against a backdrop of annual strength. Apartment prices slipped 3 per cent and villa prices 1 per cent quarter-on-quarter, even as year-on-year gains held at 19 per cent for apartments and 10 per cent for villas. Transaction volumes eased 8 per cent from the previous quarter to around 7,200 deals, but remained up 83 per cent year-on-year, with off-plan sales making up roughly 84 per cent of activity. The office market stayed firm, driven largely by demand for space within the Abu Dhabi Global Market on Al Maryah Island, which is fully occupied and running an active waiting list. Masdar City Square, The Link and the Souq Al Jubail Island offices form the bulk of new supply expected in the third quarter.
Dubai's development pipeline stayed busy, with about 11,650 units delivered during the quarter, split between 9,200 apartments and 2,450 villas, and roughly 56,600 more units due by year-end. Infrastructure spending continued at pace, spanning metro expansions, road upgrades, new interchanges, tunnel projects and additional Etihad Rail stations.
Dubai's rental market also showed early signs of easing, with apartment rents down 4 per cent and villas down 2 per cent for the quarter, as affordability pressures and a gradual shift from renting toward ownership weighed on tenant demand against a backdrop of rising inventory. Leasing transactions fell by a quarter during the period. In response, the Dubai Land Department rolled out its Flexi Rent initiative, giving participating landlords the option to offer monthly, quarterly and semi-annual payment structures. On the sales side, apartment and villa prices each softened 3 per cent quarter-on-quarter, though values held up better than many had expected as the market recalibrates. Off-plan activity was mixed but demand remained selective rather than absent. Dubai's office sector was the standout segment, with sustained appetite for off-plan Grade A space keeping price growth intact across several submarkets.
Northern Emirates and Al Ain Show Steadier Trends
Handover activity in the Northern Emirates was comparatively quiet, limited to Il Teatro Residences in Sharjah's Aljada and the final units at Ras Al Khaimah's Danah Bay, but new launches picked up sharply, with roughly 4,600 residential units announced in Sharjah alone during the quarter. The region's completion pipeline for the rest of 2026 has narrowed to around 7,450 units, split between Sharjah (5,450), Ras Al Khaimah (1,400) and Ajman (600). Etihad Rail passenger services between Fujairah and Abu Dhabi also began during the quarter, adding to the region's longer-term infrastructure case.
Rents across the Northern Emirates eased by an average of about 2 per cent, with Sharjah recording the sharpest pullback at roughly minus 4 per cent, while Ajman, Fujairah and Umm Al Quwain held up better on the back of affordability-driven demand. Sales prices in Sharjah and Ras Al Khaimah dipped 3 per cent and 2 per cent respectively on a quarterly basis.
Al Ain remained the most stable of the markets covered, with rents across residential, office and retail segments broadly flat quarter-on-quarter but still posting positive annual growth. Residential was the strongest performer, with apartment rents up 7 per cent and villa rents up 4 per cent year-on-year, while office rents rose 3 per cent annually and retail rents climbed 5 per cent.
Source: Colliers
