Abu Dhabi’s real estate market is quickly establishing itself as a global contender. In 2024 alone, the Abu Dhabi Real Estate Centre (ADREC) recorded 24.2% growth in real estate transactions from 2023, reaching AED 96.2 billion in value. Supported by strong foreign investment, a wave of high-profile developments and significant price appreciation, the emirate attracts growing interest from buyers seeking capital appreciation and long-term value.
Mr. Artemiy Marinin, Project Director at MERED
Artemiy Marinin, Project director from MERED, highlights five areas that stand out for premium property investors, offering distinct advantages, from strategic locations to future-ready infrastructure:
1. Al Reem Island
Al Reem Island has transformed into one of the most attractive investment areas in Abu Dhabi. Its recent inclusion in the Abu Dhabi Global Market (ADGM) free zone has added significant appeal, placing the island within one of the world’s largest international financial hubs. This development offers investors a rare combination: prime waterfront real estate, strong rental returns, and opportunities for capital growth.
With major infrastructure projects underway, such as the 2027 bridge linking Reem Island to Saadiyat Island and the expansion of nearby business districts like Al Maryah Island, the island is quickly becoming one of the best choices for high-end apartments. MERED’s upcoming luxury waterfront development in this area is a direct response to this growing market. It’s designed to cater to an expanding base of investors looking for quality, connectivity, and long-term value. Positioned in one of the most promising locations, designed by Pritzker Prize laureates, the project will offer premium living spaces with incredible views, large modern amenities and retail, making it a key player in the future of Al Reem Island and a new landmark.
2. Saadiyat Island
Divided into seven districts, Saadiyat Island offers a mix of residential and commercial opportunities, anchored by world-class resorts, beaches, and luxury communities that appeal to high-end property investors. It is home to some of the most prestigious attractions in Abu Dhabi, including the Louvre and the upcoming Guggenheim Abu Dhabi. Saadiyat has recorded price increases of 32.4% in 2024, making it the emirate’s highest appreciating residential area. Demand for high-end apartments remains robust, driven by the island’s exclusivity and cultural ecosystem. While near-term development is constrained by land availability, long-term potential remains strong, particularly in the Saadiyat Cultural District. Investors targeting asset preservation and premium rental returns continue to prioritise Saadiyat as a resilient, high-performing market.
3. Yas Island
Located just 20 minutes from downtown Abu Dhabi and 50 minutes from Dubai, with excellent highway links and proximity to Abu Dhabi International Airport, Yas Island attracts young professionals and expatriates. Many multinational firms based on Yas also lease residences for their staff, contributing to high occupancy rates of 85–95%. Average gross rental yields for luxury apartments hover between 4-6%, with prime freehold units reaching 6-8%. Limited land availability is expected to drive future price appreciation. This ensures investors earn a regular rental income stream regardless of market cycles. Meanwhile, rising demand from tourism, infrastructure upgrades, and access to entertainment hubs like Ferrari World, Yas Marina Circuit, and luxury hotels make Yas Island a high-performing, well-rounded asset in any property portfolio.
4. Al Maryah Island
As Abu Dhabi’s central business district, Al Maryah Island offers a tightly integrated environment for both living and working. Its proximity to financial institutions, luxury retail, healthcare, and cultural venues creates a stable base for long-term residential demand. The island’s master plan supports an active, high-quality lifestyle with strong infrastructure and urban planning standards, translating into reliable tenant profiles and stable occupancy rates. As Abu Dhabi scales its knowledge economy ambitions, Al Maryah is expected to remain a prime asset for investors seeking stable yields and sustainable value growth.
5. Hudayriyat Island
Hudayriyat Island represents one of the most forward-looking investment opportunities. The island, home to several high-profile developments, including luxury resorts, beachfront villas, and world-class recreational facilities, is a high-value, low-density destination for future residents. Sustainability lies at the heart of Hudayriyat’s development, with smart city technologies and green infrastructure creating a future-proof model for urban living. This appeals to environmentally-conscious buyers and strengthens long-term asset value in an increasingly ESG-driven market. Early investors stand to benefit from strong capital appreciation once the island’s projects fully mature.
As the city’s residential footprint expands outward and infrastructure and amenities take shape, long-term returns are expected to follow.
