Abu Dhabi-based Crompton Partners Estate Agents highlights market trends, developments, and predictions for 2026 16 December, Abu Dhabi: Crompton Partners Estate Agents, one of Abu Dhabi's longest serving and most trusted brokerages, is marking one of its strongest years in a decade, after market reports reveal that the last 12 months have seen apartments appreciate by 28% and villas/townhouses by 25%. As Ben Crompton, Managing Partner, Crompton Partners puts it: 'These are numbers we haven’t seen since 2014 and are more reminiscent of Dubai than our quieter, more cautious emirate.' He also notes that apartment rents in the bustling capital have risen by 16%, and villas by a more modest 7% in the last year. Based on his decades of local market experience, Ben suggests the outlook doesn’t look much different going forwards, either. ADREC’s H1 report 2025 shows supply of new units coming onto the market will be subdued into 2028, with less than 5% increases in inventory each year. 'In 2024, the population increased by over 8% - so if this imbalance is maintained, we will continue to see these price and rent increases across the board,' the real estate expert comments. And the biggest market catalyst is the booming economy. The International Monetary Fund (IMF) expects the Emirate of Abu Dhabi to post economic growth of around 6% for 2025 - that’s outstripping almost every other economy in the world, including the USA and China. He highlights two key market shifts in 2025. Firstly, the return of investors to the secondary market. The capital has traditionally seen investors focus solely on off-plan projects, but the seismic shift in secondary market sales underlines massive growth in this sector. The second big market shift is seeing more foreign buyers moving into the off-plan market. This has taken off in 2025, particularly on Aldar projects. It was reported that 67% of initial sales on Fahid Island went to expats and overseas investors from countries including the UAE, Russia, UK, and China. “The IMF predicts 5.8% growth for 2026, so the real estate outlook looks buoyant in the coming years. Add the willingness of the Abu Dhabi government to continuously attract more and more business from abroad, using vehicles like the ADGM to attract them, and we’ll only see the economy continue to grow,' says Ben. He's bullish heading into 2026, suggesting that: 'Supply is manageable, and if demand stays as high as predicted, it should be smooth sailing for the real estate sector,' but adding a caveat that 'there is always the opportunity for external shocks, and ongoing regional instability which could affect us here in the Gulf.' In terms of 2026, he underlines that supply remains severely constrained. Cavendish Maxwell predicted that approximately 8,000 new residential units would be delivered by the end of 2025. ADREC has predicted that 2026 might see up to a 5% increase in stock, but in the market, Ben comments that: 'We’re hearing more and more of delays and handover dates being pushed back. COVID froze a lot of development, and construction only came back to the market in a big way in 2023 and 2024. Supply is likely to be low until the end of 2028, and if the population keeps on as it has been, we will only see more price rises.' He is also mindful of what's being dubbed a potential “AI Recession” due to the predicted gains from artificial intelligence not being realised as quickly as some predicted. Another potential challenge he sees is the unpredictability of local population growth: 'Abu Dhabi relies on immigration for most of its growth. Although we can predict supply with scientific accuracy, it is harder to tell how attractive the city will be going forward.' Crompton says Abu Dhabi's real estate sector faces a stable period up to 2029, when there will be a significant increase in property becoming available to the market. 'For developers and investors launching or buying off-plan now, they need to understand these deliveries in 2029 and onwards will be a challenge to the market,' he warns, adding that: 'Luckily, the path to 2029 is punctuated with the delivery of some truly stunning projects which will soften the landing. The Guggenheim, Etihad Rail, The Sphere and Harry Potter World, to name a few, should keep interest in the market going strong. And the potential Disney opening in the 2030s will certainly keep us all on our toes.' 'One thing is certain however,' he concludes: 'is that the Abu Dhabi government is business-friendly and is always looking to open the Emirate up to innovation and commerce. As long as this is maintained, the future looks bright whatever clouds may appear.'
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