Al Reem Island tops Abu Dhabi's residential sales on ADGM boost

Investors pile into Al Reem Island even with price gains

Last updated: August 14, 2025 | 09:23

Manoj Nair, Business Editor

1 MIN READ

The Al Reem Island became part of the ADGM portfolio in 2024. The gains are now being felt in residential demand at the island.

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Dubai: Al Reem Island has emerged as the highest selling residential location in Abu Dhabi during the first six months of 2025 – and clearly gaining sizable investor interest after being bought by ADGM a year ago.

When it comes to price per square foot, Reem Island homes are averaging Dh1,194, according to new data from Driven Properties.

This price range is around 10.7% higher than Al Reem island rates during H2-2024.

Also Read: Buying or renting an Abu Dhabi property? Check for 'Madhmoun' permits

Even then, Reem island still has one of the most competitive rates in the mid- and upper-mid residential options available in Abu Dhabi currently. This is what’s showing up in the latest sales data too.

“This robust (sales) activity backed by affordability relative to (Abu Dhabi’s) luxury hubs, mature infrastructure, and strong supply from developments like Shams and Reem Hills signals investor preference for communities offering balanced yield and quality of life,” says the Driven Properties report.

Also Read: Abu Dhabi rents soar, home prices steady as fewer homes hit the market

It was in April 2024 that ADGM (Abu Dhabi Global Market) confirmed it was acquiring Al Reem Island, and granting free zone status to companies that were operating on the island. That decision also made Al Reem island one of the hottest office sub-markets in the emirate.

Rents at Al Reem Island

This obviously fueled demand for residential investments on Al Reem, both among end-users and investors wanting to rent out. Current rents on 2-bedroom units at the island show a range between Dh110,000-Dh120,000, while 1-beds there are in the Dh70,000-Dh90,000 band.

More to follow...

Manoj NairBusiness Editor

Manoj Nair, the Gulf News Business Editor, is an expert on property and gold in the UAE and wider region, and these days he is also keeping an eye on stocks as well. Manoj cares a lot for luxury brands and what make them tick, as well as keep close watch on whatever changes the retail industry goes through, whether on the grand scale or incremental. He’s been with Gulf News for 30 years, having started as a Business Reporter. When not into financial journalism, Manoj prefers to see as much of 1950s-1980s Bollywood movies. He reckons the combo is as exciting as it gets, though many will vehemently disagree.