In 2025, the real estate sector in Abu Dhabi is experiencing significant growth, with Al Reem Island standing out for both investments and lifestyle offerings. According to MERED, an internationally recognized real estate developer, the island saw a remarkable 38% year-on-year surge in average prices for off-plan properties during the second quarter of 2025.
These statistics, derived from detailed transaction analyses by Quanta, highlight the island’s attractiveness as an investment hub. In contrast, Khalifa City and Jubail Island saw more modest price increases of 24% and 20% respectively, affirming the overall strength and positive trend of Abu Dhabi’s property market.
On the rental front, Al Reem Island also recorded a significant 21% year-on-year jump in apartment rents, fueled by ongoing demand and high-quality infrastructure. Quanta’s rental indices reveal a growing interest in communities that provide comprehensive amenities and strategic transportation links.
Residents of Al Reem Island enjoy a distinctive urban lifestyle that blends waterfront living with premium office spaces, excellent healthcare facilities, extensive retail options, and the expansive 1,000,000 square-foot Reem Central Park. Positioned between Abu Dhabi’s business center and the cultural epicenter of Saadiyat Island, the island embraces a modern “live-work-play” lifestyle.
The Luxury Real Estate Market Flourishes
The flourishing real estate sector in Abu Dhabi is not confined to a single locale.
The market for luxury and branded residences is witnessing unprecedented expansion in 2025, with the number of branded property launches increasing fourfold compared to the previous year, as reported by Metropolitan Capital Real Estate (MCRE).
Driven by heightened interest from high-net-worth individuals (HNWIs), foreign investors, and an increasing number of long-term residents, the city’s premium segment has experienced a five-percent rise in transactions exceeding Dhs7m, amounting to Dhs6.3bn in just the first four months of the year. Over half of these transactions fell within the Dhs10m and above range, reflecting growing investor confidence in Abu Dhabi’s high-end real estate market.
“Abu Dhabi has firmly established itself as a premier destination for investments centered around luxury and lifestyle,” stated Evgeny Ratskevich, CEO of MCRE. “Many investors who started with a single property are now expanding their portfolios, while long-term residents are increasingly opting to purchase homes rather than rent, showcasing their confidence in the market’s long-term potential.”
A significant contributor to this growth has been the surge in branded residence developments, particularly in desirable locations like Saadiyat Island, Al Reem Island, and Mariah Island. With at least 25 new branded residences anticipated to be launched in 2025, up from just a few last year, Abu Dhabi is rapidly becoming a center for high-end, lifestyle-oriented living.
Some notable launches this year include Jacob & Co Beachfront Residences, Brabus Residences by Cosmo, Waldorf Astoria Residences, Elie Saab Waterfront, SHA Wellness Residences, and Mandarin Oriental Residences. A standout deal this year was Nobu Residences, which made headlines with a record-setting penthouse sale at Dhs137m, marking the highest residential sale ever in Abu Dhabi.
Transformative Developments for Al Reem Island and ADGM
MERED is set to further enhance Al Reem Island’s stature with a new waterfront project encompassing over 23,400 square meters within the jurisdiction of Abu Dhabi Global Market (ADGM). Developed in partnership with Pritzker Prize-winning architects, this endeavor aims to redefine ultra-luxury living in the capital, offering stunning sea views, iconic architecture, and unparalleled luxury.
“Al Reem Island has decisively established itself as the premier residential area in Abu Dhabi. Waterfront properties are currently averaging over Dhs1,800 per square foot, with new developments exceeding these prices,” commented Artemiy Marinin, Project Director at MERED.
A pivotal factor in Al Reem’s rise has been the extension of ADGM’s jurisdiction to the island in April 2023. Since then, over 1,100 new businesses have registered, raising the total to more than 11,000 entities. This influx of professionals, executives, and entrepreneurs has further enhanced the island’s luxury appeal and rental demand.
As Abu Dhabi’s urban landscape continues to evolve, the combination of strong economic fundamentals, innovative developments, and branded living is setting a new standard for the residential real estate sector. With record sales and design-driven innovations, Al Reem Island is leading the transformation of the capital into a global real estate hub.