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Al Reem Island property prices surge 38% in Q2 2025, cementing lead as Abu Dhabi’s top investment hotspot

Some Abu Dhabi rents up 21 per cent as demand grows for luxury waterfront living in ADGM’s residential hub

Abu Dhabi’s real estate market
Reem Island and Yas Island are delivering the highest rental yields, owing to attractive pricing and location, experts said Image: Shutterstock

Al Reem Island has reinforced its position as Abu Dhabi’s premier residential investment destination, recording a 38 per cent year-on-year rise in off-plan property weighted average prices in Q2 2025, according to analysis by international developer MERED using Quanta transaction data.

Other leading areas also posted strong growth, with Khalifa City up 24 per cent and Jubail Island up 20 per cent, underscoring the capital’s buoyant real estate market.

Al Reem Island’s popularity extends to rentals, where apartment rents climbed 21 per cent year-on-year in Q2 2025, supported by a mix of high-quality infrastructure, waterfront living, Grade-A offices, diverse retail, advanced healthcare, and the 1,000,000sq ft Reem Central Park.

Abu Dhabi real estate

Strategically positioned between Abu Dhabi’s mainland business district and Saadiyat Island’s cultural attractions, the island offers a fully integrated “live-work-play” lifestyle.

Building on this momentum, MERED is developing a design-led waterfront project across two prime plots totalling more than 23,400sq m within the Abu Dhabi Global Market (ADGM).

The scheme, crafted by Pritzker Prize-winning architects, aims to set a new benchmark for super-prime living in the UAE capital.

Artemiy Marinin, Project Director at MERED, said: “Al Reem Island has unequivocally established itself as Abu Dhabi’s premier residential destination. Average prices in waterfront projects have exceeded AED 1,800 ($490)per square foot, with new projects launched at even higher prices.

“We’re proud to contribute to this dynamic market with our forthcoming project, offering direct sea views and architectural distinction crafted by Pritzker Prize-winning visionaries.”

The island’s growth has been boosted by ADGM’s April 2023 jurisdiction expansion to Reem Island, which has attracted more than 1,100 new businesses and lifted total registrations past 11,000.

The influx of high-earning professionals has reinforced its status as the residential hub of choice for ADGM.

With sustained price growth, rising rents, and a steady pipeline of landmark developments, Al Reem Island is poised to remain Abu Dhabi’s go-to address for luxury living and long-term investment.

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