The real estate boom in Abu Dhabi is likely to reflect in the rent in 2026 though rental demand has remained stable during 2025, according to reports. As per the Abu Dhabi Real Estate Market Report for 2025, released by PropTech portal Bayut, there was an increase in rent by eight to 30 per cent in the affordable apartment sector while rents in the villa segment increased by up to 16%.
Other studies reveal rents are expected to grow at a slower pace in 2026 compared to previous years.
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Preferred locations
Affordable communities such as Khalifa City and Al Shamkha remained popular for both apartments and villas, according to Bayut report. While Al Reem Island and Al Khalidiya remained sought-after locations in the mid-tier segment, Shakhbout City and Al Raha Gardens were in demand for villas. At the premium end, Al Raha Beach and Yas Island have been the top choices for apartments and villas, respectively, with Saadiyat Island continuing to attract demand across all luxury categories, the Bayut report added.
Rents in 2025
There was a rise of 8% to 30% in rents in the affordable apartment category. The sharpest increase was recorded in Al Nahyan, which indicated that tenants wanted well-connected yet affordable locations.
In the mid-tier, apartment rents climbed by 25 per cent, led by notable price growth in Al Reem Island and Hamdan Street. In the luxury segment, apartment rents have increased by as much as 32 per cent, driven largely by high demand for one-bedroom units in Al Raha Beach and Saadiyat Island, according to the Bayut report.
As for villas, there was a 16 per cent increase in the affordable segment, while mid-tier villas have recorded growth of 1 per cent to 13 per cent. Luxury villa rents have also generally increased, rising by 6 per cent to 16 per cent across key locations. The five and six bed units in Yas Island and Saadiyat Island have seen corrections of up to nine per cent.
However, analysts predict the property market in Abu Dhabi to remain tight amid higher demand and limited supply. The indications are that the residential prices will rise by about 30 per cent year on year in December and rents up 23 per cent.
It is also predicted that about 6,500 new residential units will be delivered in Abu Dhabi in 2026.
