“Yas Island” records the highest return on investment for luxury apartments and villas in Abu Dhabi

The “Bayut” real estate platform revealed the areas with the highest investment returns for luxury, medium- or low-priced residential apartments, as well as the villa category in Abu Dhabi.

The platform identified three areas in the “low price” category for apartments, topped by “Al Reef” with returns amounting to about 9.68%, followed by “Al Ghadeer” area with 8.4%, then “Zayed City” with about 3.52%, and in real estate with “medium prices” “Masdar City” came at the top of the areas with returns amounting to 8.45%, followed by “Al Reem Island” with about 7.49%, then “Bani Yas.” By 5.52%.

“Bayut” reported that “Yas Island” topped the regions with the highest investment return in the luxury apartments category, during the past year, with a return of 7.07%, followed by the “Al Raha Beach” area with a return of 6.66%, then “Saadiyat Island” with a return of about 4.05%.

In the villas category, Bayut identified nine areas that are considered to be the highest in terms of investment returns, with “Al Reef” taking the lead in terms of low-priced villa prices at 6.27%, followed by “Khalifa City” with 3.95%, then “Al Shamkha” with 3.68%.

In the medium-priced villas, “Al Raha Gardens” came in the lead with 6.2%, followed by “Al Samha” with 5.37%, then “The Park” with 4.58%, while “Yas Island” came in the lead in the luxury category with 5.43%, then “Jubail Island” with 4.88%, and “Saadiyat Island” with 4.47%.

Rent trends

In addition, Bayut revealed the trends in demand for rentals in Abu Dhabi during the past year, as most of the major residential areas recorded increases in asking prices, and rents for apartments with reasonable (low) prices rose by a rate ranging between 8 and 30%, and rents for apartments in the middle category also increased by a rate of up to 25%, driven by noticeable growth on Reem Island and Hamdan Street, and in the luxury apartments category, rents rose by a rate of up to 32%, especially for apartments consisting of One bedroom in Al Raha Beach and Saadiyat Island.

As for the villa sector, rents in the low price category increased by 16%, and in the medium category by between 1 and 13%. Luxury villas also witnessed general increases ranging between 6 and 16% in the most prominent locations. In contrast, five- and six-bedroom units in Yas and Saadiyat Islands recorded price corrections of up to 9%, indicating a gradual balance between supply and demand in this category.

Purchasing trends

Property values ​​in Abu Dhabi continued their upward trajectory in 2025, as buyers looking for cost-effective options focused on communities such as Al Reef, Al Ghadeer, Khalifa City, and Al Shamkha.

In the middle-income category, Al Reem Island, Masdar City, Al Raha Gardens, and the tourist area (The Park) emerged as preferred options, while buyers in the luxury category continued to prefer Al Raha Beach, Yas Island, and Saadiyat Island areas, due to the upscale lifestyles they provide.

Apartment prices

Apartment prices in low-priced communities recorded an increase of between 10 and 13%, while apartment prices in the middle category increased by 19%, driven mainly by the continued demand for housing overlooking the waterfront on Reem Island. As for the luxury category, prices witnessed greater increases, reaching 27%, especially on Yas and Saadiyat Islands, especially after the announcement of “Disney World” Abu Dhabi.

Villa prices

With regard to villas, the prices of affordable villas in existing communities increased by 11%, with “Al Reef” topping the growth list, and medium-priced villas recorded increases ranging between 2 and 41%, with “Al Samha” achieving the highest rates of increase, driven by its strategic location and the increasing demand for middle-class housing.

As for the luxury category, the prices of villas on Yas and Saadiyat Islands increased by between 10 and 13%, while Jubail Island witnessed a price correction that reached 19%, which provided greater opportunities to access some high-end properties.

Market equilibrium

For his part, Haider Ali Khan, CEO of Bayut and CEO of Dubizzle Group in the Middle East and North Africa, said: “Today, the Abu Dhabi real estate market enjoys an advanced level of balance and harmony between supply and demand across various categories.”

Khan pointed out that this is supported by the continued strong performance in the main regions, in addition to the fact that transparency is gaining pivotal importance as it is a fundamental pillar for the sustainability and growth of the market.

Investment opportunities

In turn, the founder and CEO of Nationwide Real Estate – Middle East, Amin Al-Qudsi, said, “The investment returns for apartments and villas vary clearly according to the price category and region, which reflects diverse investment opportunities for investors according to their goals.”

Al-Qudsi pointed out to Emirates Al-Youm that Al-Reef and Al-Ghadeer topping investment returns in the low-priced category is logical, given the high occupancy rate and low purchase price compared to other areas, pointing out that “the medium-sized apartment category in Masdar City and Al Reem Island provides balanced options between a good return and a distinguished location.”

He explained that the return in luxury categories focuses more on preserving the value of the asset than on rental income, noting that returns on villas are usually lower, but areas such as Al-Reef and Al Raha Gardens have proven high rental stability.

Al-Qudsi stressed that the demand for real estate ownership in Abu Dhabi is still high, and that the distinguished projects that were launched attracted wide interest from investors and end-users, which contributed to the rapid sale of many projects by real estate development companies. He expected that the real estate market in Abu Dhabi will continue to achieve strong results, supported by the emirate’s sustainable economic growth, its stability and the security and safety it enjoys, in addition to government initiatives that have played an important role in enhancing the confidence of investors and buyers.

---

The most popular areas for purchase and rent in Abu Dhabi

Bayut revealed a group of the most popular areas for buying and renting apartments and villas in Abu Dhabi during the past year, 2025. It indicated that the areas most in demand for purchasing apartments in the luxury category were topped by Al Raha Beach area, Yas Islands and Saadiyat. As for apartments with medium prices, Al Reem Island, Masdar City and Baniyas came in the lead, while apartments with low prices came in Al Reef and Al Ghadeer.

While Yas Island, Saadiyat Island, and Jubail Island topped the most demand for purchasing villas in the luxury category.

As for the areas most in demand for renting apartments, Al Raha Beach, Yas Island, and Saadiyat Island were in the luxury category, and in the middle category were Al Reem Island, Al Khalidiya, and Hamdan Street, and in the low price category were Khalifa City and Al Shamkha.

. Prices of luxury villas on Yas Islands and Saadiyat Islands increased by between 10 and 13%.

. Apartment prices in affordable communities rose between 10 and 13%.