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Abu Dhabi luxury residential market evolving as buyer preferences shift, says expert

Abu Dhabi luxury residential market evolving as buyer preferences shift, says expert

Abu Dhabi luxury residential market evolving as buyer preferences shift, says expert

Aug 05, 2026

Abu Dhabi's luxury residential market is evolving as buyers place greater emphasis on long-term value, quality of design and the overall living experience, according to Mered, the award-winning international real estate developer. The shift is being underpinned by continued market momentum.

As per Abu Dhabi Real Estate Centre (Adrec) data, the UAE capital had recorded AED65.4 billion ($18 billion) in real estate transactions year-to-date, including AED48.7 billion in sales, AED14.8 billion in mortgage activity and AED8.2 billion in foreign direct investment (FDI) from investors representing more than 100 countries.

The data also highlights continued activity across Abu Dhabi's established waterfront destinations, reflecting sustained investor interest in integrated lifestyle communities.

"Headline market growth tells only part of the story. Buyers are increasingly distinguishing between developments that command a premium because of genuine quality and those benefiting from broader market momentum. Abu Dhabi's luxury residential market has evolved significantly. Buyers are no longer evaluating developments solely on location, size or finishes," stated Michael Belton, the CEO of Mered.

"They're evaluating the complete living experience and the credibility of the developer behind it. That's a sign of a healthier, more mature market. As expectations rise, developers have to think beyond creating impressive buildings and focus instead on creating places where people genuinely want to live for years to come," he noted.

Drawing on its experience in Abu Dhabi's premium residential sector, Mered says three major trends are increasingly shaping buyer decisions across the market. These are

*The rise of destination living

One of the most significant shifts Mered is observing is that buyers are increasingly comparing destinations rather than developments. Decisions are being shaped not only by the quality of a residence, but by the broader environment that surrounds it, from public waterfronts and landscaped open spaces to dining, wellness, culture and walkability.

Luxury developments are increasingly expected to contribute to a complete neighbourhood rather than exist as standalone residential assets.

The market continues to concentrate around established lifestyle destinations, with Al Reem Island and Yas Island leading transaction activity, while Saadiyat Island remains the benchmark for Abu Dhabi's ultra-premium residential offering, reflecting a broader shift in buyer behaviour.

Increasingly, established waterfront destinations are valued not only for their location but also for the lifestyle they offer, combining residential communities with hospitality, retail, wellness, culture and public spaces that support long-term liveability.

*Execution the ultimate differentiator

Off-plan continues to perform strongly, but buyers are placing greater emphasis on construction progress, delivery certainty and the developer's ability to execute on its vision before making a purchasing decision.

Approximately 65% of residential sales continue to take place in the off-plan market, underscoring sustained confidence in Abu Dhabi's development pipeline. That confidence, however, is increasingly being earned through visible execution rather than marketing alone.

*Global design, local identity

As Abu Dhabi attracts a broader international investor base, buyers are bringing higher expectations around architecture, interiors and landscape design. Increasingly, these disciplines are viewed as long-term value drivers rather than aesthetic enhancements.

This shift is also reflected in the growing international appeal of Abu Dhabi's residential market with the foreign direct investment hitting AED8.2 billion, with buyers from more than 100 countries participating in the market.

These principles are reflected in Riviera Residences, Mered's landmark waterfront development on Al Reem Island, designed by Pritzker Prize-winning architects Herzog & de Meuron.

The project combines over 400 residences with a limited collection of 11 villas, integrated landscape design by Michel Desvigne Paysagiste and a waterfront promenade conceived as a vibrant public destination, bringing together architecture, landscape and community planning in line with the trends shaping the next phase of Abu Dhabi's luxury residential market.

On the future outlook, Mered said looking ahead, it expects Abu Dhabi's premium residential market to continue benefiting from the emirate's economic diversification, regulatory transparency and growing international profile.

However, as competition increases, the company believes the projects that will stand out are those that create lasting value through exceptional design, disciplined execution and thoughtfully curated living environment, it added.