Al Reem Island dominates Abu Dhabi’s property surge
Abu Dhabi’s property market is showing strong momentum in 2025, with Al Reem Island emerging as the city’s most dynamic performer. According to data from MERED and analytics firm Quanta, off-plan property weighted average prices on the island surged 38% year-on-year in Q2 2025.
In comparison, Khalifa City and Jubail Island posted price increases of 24% and 20% respectively—still robust but trailing Al Reem’s explosive growth.
The island’s rental market is also thriving, with apartment rents rising 21% year-on-year, fueled by high-quality infrastructure, comprehensive amenities, and strategic positioning.
Lifestyle and connectivity drive demand
Residents of Al Reem Island enjoy a rare “live-work-play” lifestyle, featuring:
- Waterfront living and luxury apartments
- Grade-A office spaces
- Leading healthcare facilities
- Expansive retail destinations
- The landmark Reem Central Park (1 million sq. ft.)
Located between Abu Dhabi’s central business district and Saadiyat Island, the area has become the capital’s premier choice for both investors and end-users.
Luxury and branded residences redefine the market
The luxury segment of Abu Dhabi real estate is experiencing record expansion, with branded residence launches quadrupling in 2025 compared to last year, according to Metropolitan Capital Real Estate (MCRE).
Key highlights include:
- Transactions of Dhs7m+ properties reached Dhs6.3bn in just four months.
- Over 50% of deals were above Dhs10m, underscoring deep investor confidence.
- High-profile launches: Jacob & Co Beachfront Residences, Brabus Residences, Waldorf Astoria, Elie Saab Waterfront, SHA Wellness, Mandarin Oriental Residences.
A milestone transaction came from Nobu Residences Abu Dhabi, which sold a penthouse for Dhs137m—the highest-ever residential sale in the capital.
Al Reem Island + ADGM: A powerful combination
MERED is set to elevate Al Reem further with a 23,400 sq. m. waterfront project inside the Abu Dhabi Global Market (ADGM) jurisdiction. Designed by Pritzker Prize-winning architects, the project will deliver super-prime residences with iconic design and direct sea views.
Since ADGM expanded to Al Reem Island in 2023:
- Over 1,100 new businesses joined, raising the total to 11,000+ registered entities.
- This influx of global professionals has boosted housing demand and luxury appeal.
“Al Reem Island has firmly established itself as Abu Dhabi’s premier residential destination,” said Artemiy Marinin, Project Director at MERED. “Waterfront homes now average over Dhs1,800 per sq. ft., with new launches pushing higher.”
Abu Dhabi’s new benchmark in real estate
From record-breaking sales to design-led developments, Al Reem Island is leading Abu Dhabi’s transformation into a global property hotspot.
With branded living, visionary projects, and ADGM’s business ecosystem, the island is at the forefront of Abu Dhabi’s real estate evolution—setting a new standard for investment, luxury, and lifestyle.
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