New supply limits the pace of rise in Abu Dhabi rental prices in the second quarter

Data prepared by the “Property Finder” real estate platform for “Emirates Today”, which monitored rents in Abu Dhabi during the first half of this year, showed that there were noticeable movements in rental prices between the first and second quarters in six major regions in the emirate.

According to the data, all regions witnessed declines in rents of varying percentages in various categories of residential units, as a result of the availability of new supply that provided tenants with wider options.

The list of the six areas monitored included: “Al Raha Beach”, “Al Reem Island”, “Corniche Area”, “Yas Island”, “Musaffah”, and “Khalidiya”.

The data showed that the average rental prices for the “studio” category in Abu Dhabi in five areas under monitoring during the second quarter of 2026 amounted to about 73.89 thousand dirhams, compared to an average annual rent of 79.79 thousand in the first quarter of the same year, a decline of 7.39%.

The average rent for a one-bedroom apartment in the six areas monitored during the second quarter of this year reached about 94.16 thousand dirhams, compared to 100.83 thousand dirhams at the end of last March, an estimated decrease of about 6.6%, while the average rent for an apartment consisting of two rooms and a living room reached about 131.67 thousand dirhams, compared to 139.08 thousand dirhams, a decrease of 5.33%.

The data revealed that the “Al Raha Beach” area topped the five areas monitored during the second quarter in terms of the average rental price for a residential unit in the “studio” category at 95 thousand dirhams annually, while “Al Khalidiya” was the lowest for this category at 49.49 thousand dirhams.

For its part, the “Corniche area” topped six areas in the category of one-bedroom residential units at 114.99 thousand dirhams annually, while “Musaffah” was the lowest priced at 55 thousand dirhams annually.

The data also showed that “Yas Island” topped six areas in the second quarter of this year, in terms of the average annual rental price for two-bedroom residential units at 175 thousand dirhams annually, while “Musaffah” was the lowest price at 70 thousand dirhams annually.

Varying pace

In addition, Chief Revenue Officer at Property Finder, Sherif Suleiman, said that data for the first half of 2026 showed that the rental market in the UAE is moving at a varying pace from one emirate to another, with the market shifting from general and comprehensive growth to local trends that are more affected by price levels.

He pointed out that the rental market in Abu Dhabi witnessed a decline in prices during the first half of the year, especially in upscale areas, such as Yas and Al Reem Islands, as a result of the entry of new housing supply into the market, which provided tenants with wider options and contributed to easing pressure on rents.

He explained that areas such as Musaffah maintained stable rental levels, which reflects the continued demand for affordable areas and their ability to maintain price balance.

Suleiman expected that if supply continues to increase during the second half of 2026, the rental market in Abu Dhabi will become more closely linked to price levels.

Correction movement

For his part, Head of Planning and Investment at Le Rev Properties, Haitham Ali, said that the rental market in Abu Dhabi recorded notable increases during the first quarter of this year, ranging in most areas of the emirate between 13% and 35%, which reflected the pressures faced by tenants, especially in areas with high occupancy rates.

He explained that the rental market witnessed a balanced price correction movement during the second quarter of the year, as most vital areas recorded gradual declines ranging between 4% and 13% compared to the first quarter, stressing that these indicators reflect a healthy and flexible price correction, which would enhance the competitiveness of the rental market in Abu Dhabi.

Ali stated that rent levels vary even within one region, according to a group of factors, most notably the location of the unit within the project, the quality of finishes, the age of the building, the availability of facilities and services, in addition to the efficiency of building management and maintenance work.

He added that renovated units for current tenants are often lower in price than newly offered units, while prices vary between residential communities according to levels of demand for them.

He pointed out that the decision of the Abu Dhabi Real Estate Center to freeze rent increases on residential, commercial and industrial contracts at 0% until further notice is expected to contribute to calming the pace of rising rents and stabilizing rental values ​​at their current levels, thus enhancing market stability and limiting increases when units are transferred to new tenants.

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