Al Reem Island leads the pack: 38% price surge puts it at no 1 in Abu Dhabi

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Abu Dhabi’s real estate market is witnessing momentum in 2025, with Al Reem Island emerging as the standout performer in both investment and lifestyle offerings. According to MERED, the international award-winning real estate developer, Al Reem Island recorded a 38 per cent year-on-year increase in off-plan property weighted average prices during Q2 2025.

Read more: Why Abu Dhabi is the new hotspot for homebuyers

These figures, based on extensive transaction data from Quanta, underscore the island’s appeal as an investment destination. In comparison, Khalifa City and Jubail Island saw notable, though more modest, price increases of 24 per cent and 20 per cent respectively, further confirming the overall resilience and upward trajectory of Abu Dhabi’s property market.

In the rental segment, Al Reem Island also posted a robust 21 per cent year-on-year rise in apartment rents, driven by sustained demand and high-quality infrastructure. Quanta’s rental indices point to growing interest in communities that offer comprehensive amenities and strategic connectivity.

Residents of Al Reem Island benefit from a unique urban lifestyle that blends waterfront living, Grade-A office spaces, top-tier healthcare, expansive retail offerings, and the sprawling 1,000,000 square-foot Reem Central Park. Situated between Abu Dhabi’s business core and the cultural hub of Saadiyat Island, the island embodies a modern “live-work-play” ethos.

Branded residences power luxury real estate growth

Abu Dhabi’s booming real estate sector isn’t limited to just one location.

The luxury and branded residences market is experiencing record growth in 2025, with branded property launches increasing fourfold compared to 2024, according to Metropolitan Capital Real Estate (MCRE).

Fuelled by rising interest from high-net-worth individuals (HNWIs), international investors, and a growing pool of long-term residents, the capital’s premium segment has seen a five per cent increase in transactions valued at Dhs7m and above, totaling Dhs6.3bn in the first four months of the year alone. More than half of these deals were in the Dhs10m and above bracket, signaling heightened investor confidence in Abu Dhabi’s upscale real estate offerings.

“Abu Dhabi has firmly positioned itself as a premier destination for luxury and lifestyle-led investments,” said Evgeny Ratskevich, CEO of MCRE. “Many investors who began with a single unit are expanding their portfolios, while long-term residents are choosing to buy rather than rent, reflecting a deep trust in the market’s long-term potential.”

One of the most significant drivers of this growth has been the surge in branded residence developments, particularly in hot spots like Saadiyat Island, Al Reem Island, and Mariah Island. With at least 25 new branded residences expected to launch in 2025, up from just a handful last year, Abu Dhabi is quickly becoming a hub for high-end, lifestyle-centric living.

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. One standout transaction came from Nobu Residences, which made headlines with a record-breaking penthouse sale of Dhs137m, the highest ever residential sale in Abu Dhabi.

New era for Al Reem Island and ADGM

MERED is poised to further elevate Al Reem Island’s profile with a new waterfront project that spans over 23,400 square meters within the Abu Dhabi Global Market (ADGM) jurisdiction. Designed in partnership with Pritzker Prize-winning architects, the project promises to redefine super-prime living in the capital, offering direct sea views, iconic design, and unmatched luxury.

“Al Reem Island has unequivocally established itself as Abu Dhabi’s premier residential destination. Waterfront properties are now averaging over Dhs1,800 per square foot, with new launches exceeding those prices,” said Artemiy Marinin, Project Director at MERED.

A major catalyst in Al Reem’s ascent has been the expansion of ADGM’s jurisdiction to the island in April 2023. Since then, more than 1,100 new businesses have joined, bringing the total to over 11,000 registered entities. This influx of professionals, executives, and entrepreneurs has added further depth to the island’s luxury appeal and rental demand.

As Abu Dhabi’s urban landscape evolves, the combination of strong fundamentals, visionary developments, and branded living is setting a new benchmark for residential real estate. From record-breaking sales to design-driven innovation, Al Reem Island is leading the charge in the capital’s transformation into a global real estate hotspot.