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Unlocking the allure of Al Reem Island: A comprehensive guide to luxury living in Abu Dhabi

Gain exclusive insights from Nicolas Majeau, Chief Strategy Officer at Dubizzle Group MENA on why Al Reem Island in Abu Dhabi is the top choice for luxury apartments and villas

Unlocking the allure of Al Reem Island: A comprehensive guide to luxury living in Abu Dhabi

Al Reem Island has emerged as one of the most popular areas for buying a house in Abu Dhabi, according to search trends on Dubizzle. The island features waterfront developments and offers residents a contemporary lifestyle with stunning views of Marina Bay and the Arabian Gulf. Hence, CW Property Middle East sat down exclusively with Nicolas Majeau, Chief Strategy Officer at Dubizzle Group MENA to gain more insights on the growing popularity of this area and why an investment in this part of the world is worth the money for the investors.

What is driving the real estate market of Al Reem?

Al Reem Island’s surge in popularity for luxury residency is not a mere coincidence but the result of a mix of factors. At the heart of its allure are its breathtaking waterfront developments, which offer residents not just a place to call home but a sanctuary that boasts contemporary lifestyle amenities coupled with stunning views of Marina Bay and the Arabian Gulf.

According to our data, rental trends affirm Al Reem Island’s standing, with an average annual rent increase of 5.33%, positioning it as a much sought-after area. The uptick in both rents and sales prices across all accommodation sizes shows a growing demand for high-end living spaces.

A few factors can be credited for its popularity–the island’s exceptional planning, strategic location, and comprehensive lifestyle offerings from waterfront leisure to modern urban conveniences.

Describe the current real estate ecosystem of Al Reem Island.

The current real estate ecosystem on Al Reem Island offers a vibrant mix of residential, commercial and mixed-use developments that cater to many demographics, from young professionals to families looking to buy homes in the UAE. The property offerings here include high-end apartments, luxury villas and state-of-the-art commercial spaces.

Major projects here include the Marina Bay Towers, which offers upscale living spaces and amenities, and the Gate Towers, which is known for its architectural design, and the bridge-linked Sky Tower with a unique silhouette.

Capitalising on Al Reem’s USP as a waterfront neighbourhood, developments like Mangrove Place and the Sun and Sky Towers offer living environments that blend luxury with nature.

For those interested in commercial opportunities, Al Reem Island has several state-of-the-art business parks and office towers, including the Addax Tower and Sky Tower offering world-class facilities for businesses.

Several prestigious developers are building on Al Reem Island, each bringing their unique style and offerings to the area. Among them, Aldar Properties stands out as one of the most influential, responsible for iconic developments such as the Gate Towers and The Bridges.

Another notable developer is Tamouh Investments, known for their contribution to Marina Square and City of Lights, focusing on creating integrated communities with residential, retail, and leisure facilities. Reem Developers, which is behind Najmat Abu Dhabi, has also contributed significantly to the island’s development, focusing on creating a balanced environment with lush green spaces, waterfront promenades, and modern urban amenities.

Sorouh Real Estate, before merging with Aldar, was instrumental in the early development phases of Al Reem Island, introducing projects that blend luxury with functionality.

What does the price point of residential projects (both for villas and apartments) look like?

The average annual asking price for apartments on Al Reem Island has reached AED 1.26 million, according to our annual property report, with a notable ROI of 6.54%. Prices per square foot for apartments have seen a 3.34% increase, averaging AED 1,064. For studio, 1-bedroom, and 2-bedroom apartments, the average asking prices are AED 585,000, AED 858,000, and AED 1.42 million respectively. On the other hand, luxury villas in Al Reem Island command an average price of AED 4.06 million, with a substantial ROI of 6.34%.

What does the social and physical infrastructure of Al Reem Island look like?

Al Reem Island is not just about luxury living; it’s a holistic community that boasts a robust social and physical infrastructure designed to meet the needs of its residents. The island features an array of social amenities, including international schools, state-of-the-art hospitals, retail centres, and leisure facilities. These elements come together to create a vibrant community atmosphere that caters to families and individuals alike.

Physically, the island is a showcase of modern urban planning, with well-laid-out roads, efficient public transport networks, and green spaces that add a touch of tranquillity to the bustling city life. The waterfront promenades and parks are popular gathering spots, offering residents a chance to unwind and connect with nature. With ongoing developments, the infrastructure on Al Reem Island continues to evolve, further enhancing the quality of life for its inhabitants.

How is the luxury real estate sector in Al Reem Island poised?

Al Reem Island is positioning itself as one of the most sought-after destinations for high-end property investments in Abu Dhabi, thanks to its luxury real estate sector, which is currently seeing a vibrant growth period.

The island offers a unique blend of urban sophistication and serene coastal living, which attracts buyers ranging from residents to international investors, looking for an upmarket living experience in a more dynamic part of town. It helps that there is a wide array of property types on offer i.e. apartments, penthouses, and waterfront villas, all designed with meticulous attention to detail and equipped with world-class amenities. Buyers can enjoy views of the Arabian Gulf and the Abu Dhabi skyline.

What do the sale trends and ROI in Al Reem Island look like?

In 2023, Al Reem Island recorded sales transactions worth AED 1.25 billion for ready apartments, as per our annual property sales market report. The island’s off-plan projects have also garnered significant attention, with the City of Lights project commanding an average sales price of AED 1,565,000 for apartments and the Tamouh luxury development averaging AED 4,046,000 for villas. With a projected ROI of 6.54% for apartments and 6.34% for villas, Al Reem Island continues to attract investors seeking lucrative returns.

Where is the real estate market of Al Reem Island headed and why does an investment here make sense?

Investing in Al Reem Island makes sense for several reasons. Firstly, its appeal as a luxury destination attracts a steady stream of buyers and renters, ensuring healthy returns on investment. Second, the ongoing infrastructure developments and enhancements in social amenities are set to further increase the island’s attractiveness, potentially leading to higher property valuations in the future. The island has witnessed a significant appreciation in property values, driven by high demand and a growing recognition of its potential as a premier residential and commercial hub.

Moreover, in tandem with Abu Dhabi’s overall real estate market showing solid growth due to increased demand, particularly in luxury segments, Al Reem Island stands out as a prime location for investment. Its diverse property portfolio positions it as a wise choice for investors looking to capitalise on the Abu Dhabi real estate sector.

Moreover, the real estate market on Al Reem Island is supported by Abu Dhabi’s growing economy and the government’s initiatives to attract foreign investment.