Yas Island, Al Reem Apartment Prices Rise 18%

Apartment prices on Yas Island and Al Reem Island rose by around 18 percent year-on-year in the year to June 2026, as Abu Dhabi’s residential market continued to show resilience despite wider regional uncertainty.

According to Knight Frank’s latest Abu Dhabi Residential and Office Market Review, waterfront communities remained among the strongest-performing residential markets in the emirate, supported by robust domestic demand and continued investor interest.

Al Saadiyat Island remained Abu Dhabi’s most expensive apartment market, with average transaction prices reaching AED43,100 per square metre, up 21 percent year-on-year. In the villa segment, Al Jubail Island recorded the strongest annual price growth at around 40 percent, while Al Saadiyat Island retained its position as the emirate’s most expensive villa location, with average transaction values of AED26,500 per square metre.

Faisal Durrani, Partner and Head of Research, MENA at Knight Frank, said Abu Dhabi’s residential market has continued to be supported by domestic demand despite geopolitical challenges.

“Despite the geopolitical challenges posed by the ongoing regional conflict, Abu Dhabi's residential market continues to be supported by robust domestic demand, with prime waterfront communities such as Al Saadiyat and Yas Island leading the emirate's price growth,” he said.

He added that the breadth of price appreciation across apartments and villas reflects the market’s positive momentum, supported partly by Abu Dhabi’s relative affordability compared with Dubai.

The latest price data comes as Abu Dhabi’s wider real estate market recorded a strong first half of the year. According to Abu Dhabi Real Estate Centre, total real estate transactions reached AED117 billion in H1 2026, up 112 percent year-on-year. Transaction volumes rose 61.7 percent to 16,838, while sales transactions accounted for AED86.1 billion during the period.

Foreign direct investment into Abu Dhabi real estate also increased sharply, reaching AED13.8 billion in the first half of 2026, up 309 percent compared with the same period last year. Non-resident investors from 116 nationalities invested in the emirate’s market, compared with 82 nationalities during H1 2025.

Knight Frank said Abu Dhabi has approximately 36,900 homes under construction between 2026 and 2030. Apartments account for 66 percent of the pipeline, villas for 33 percent and serviced apartments for around 1 percent.

Nearly 70 percent of the apartment pipeline is expected to be completed in 2026 and 2027, although Knight Frank noted that rising construction material costs and higher shipping insurance premiums could affect delivery timelines.

Yas Island accounts for the largest share of upcoming residential supply, with around 7,700 units under construction. It is followed by Fahid Island with 3,550 units and Saadiyat Island with 3,250 units.

Shehzad Jamal, Partner, Real Estate Consultancy, MENA at Knight Frank, said supply is beginning to catch up with several years of sustained demand, but premium communities are expected to retain their strength.

“With close to 37,000 homes in the pipeline through to 2030, supply is beginning to catch up with several years of sustained demand,” he said.

He added that the concentration of new stock in a handful of master-planned communities means well-located, ready properties in areas such as Al Saadiyat and Yas Island are likely to retain their premium.

While Abu Dhabi’s residential market continued to strengthen, the office sector showed signs of cooling. Knight Frank said office leasing transactions totalled around 23,616 in the first half of 2026, down 13 percent compared with the same period last year. However, Al Reem Island stood out, with leasing activity rising by more than 148 percent.

The data points to a residential market led by waterfront and master-planned communities, where limited premium supply, strong domestic demand and rising foreign investor participation continue to support price growth.

Source: Knight Frank data reported by Khaleej Times and The National confirms the 18 percent rise on Yas Island and Al Reem Island, the 21 percent rise on Al Saadiyat apartments, Al Jubail villa growth of around 40 percent, and the 36,900-unit residential pipeline. ADREC’s official H1 2026 release confirms AED117 billion in total real estate transactions, AED86.1 billion in sales, AED13.8 billion in FDI and non-resident investors from 116 nationalities.