My Take on the Abu Dhabi Real Estate Market Amid Current Regional Tensions

With the current war situation in the UAE region, many people naturally worry about how it might affect property markets. In places like Abu Dhabi, however, the impact is often the opposite of what people expect. 

📈 What Government Data Confirms (ADREC) so far

From Abu Dhabi Real Estate Centre:

• Total Residential inventory is ~400,000 units in 2025

• Abu Dhabi’s population is growing at ~7.5% annually, as per SCAD

• Supply growth remains structurally below demand

Past Supply :

• Approximately 5,200 residential units were delivered in 2024 

• Over 10,000 units delivered in 2025

• Around 15,900 new homes expected in 2026

• Long-term pipeline: +64,000 units by 2028 (~4.6% annual growth)

However, the supply of 4.6% is well below 7.5% Population influx, which continues to support price and rental growth.

3 questions that my clients ask about Abu Dhabi due to current regional tensions :

1. Distress Deals /Panic Sellers?

Many clients are on the lookout for distressed deals or panic sellers, but so far, there are no true distress or below-cost deals in the market. 

I’m only seeing prior sellers willing to sell at slightly lower premiums than before — much to the disappointment of opportunistic investors.

Those who wanted to make a million AED million premium before March are okay to settle for 600-800K premium now... but that does not make it a distress deal... they are still in loads of profit.

2. Will developers lower prices for upcoming Projects or current inventory?

Abu Dhabi’s construction sector still depends heavily on imported materials such as steel and specialist fittings, leaving project costs exposed to higher global prices, tariffs, and ongoing geopolitical tensions. The war will actually increase developer overhead due to higher prices for construction material.

This ensures that the Developers cannot afford to reduce Off-plan Project costs, hence prices WILL NOT REDUCE for the upcoming launches whatsoever...

There might be better offers on more convenient payment plans and installments to make launches more enticing, but prices will not be affected. For eg, there are 30/70 payment plans in the market as compared to 50/50 in February, but prices are untouched.

3. Has Investor confidence gone down?

Instead of investors pulling out, many will actually move their money here because the city is seen as safe, stable, and well-managed. 

The situation has highlighted the highest levels of military defence preparedness by the UAE government in times of crisis. Life is running normally, the same way as before, in terms of grocery supply, water supply, transport, businesses and professions running smoothly, except for online schools for kids, for obvious safety reasons. 

The leadership has ensured the highest levels of safety and hospitality towards its residents, which is commendable and ensures end-user trust in living here long term. 

Latest Yas Island launch mid-March, Manchester City Residences, had a record 6 billion AED sales in 72 hours for its first phase launch, Aldar and Modon each reporting 1 billion AED in sales as per initial estimates( exact data will be shared by month-end in ADREC reports, estimated 10% higher than March last year)

My Conclusion 

Investors are still buying bulk deals...

 I am daily receiving clients requesting to share any hot deals in the market ... and long-term investors will continue investing in well-thought-out investable prime location properties. 

There is no denying the fact that the situation currently is not normal, but I am sure that once these times pass, the real estate market will continue to remain the best asset for investment, especially in Abu Dhabi. 

Those who miss the boat now will have to endure great opportunity loss...