Island Leads Abu Dhabi Residential Sales

Al Reem Island has become the top residential location in Abu Dhabi for the first half of 2025, experiencing significant investor interest since its acquisition by ADGM in 2024. Driven Properties data indicates an average price of Dh1,194 per square foot, a 10.7% increase from the second half of 2024. Despite the price gains, Al Reem Island maintains competitive rates within the mid- and upper-mid residential market in Abu Dhabi.

The strong sales activity is attributed to affordability compared to Abu Dhabi's luxury hubs, established infrastructure, and substantial supply from developments like Shams and Reem Hills. This suggests a preference for communities offering a balance of yield and quality of life. The ADGM's acquisition of Al Reem Island in April 2024, along with the granting of free zone status, has also made it a prominent office sub-market.

This has fueled residential investment demand, both from end-users and investors seeking rental income. Current rental rates for two-bedroom units range from Dh110,000 to Dh120,000, while one-bedroom units rent for Dh70,000 to Dh90,000.