Abu Dhabi – the capital of the UAE – has emerged as a prominent real estate investment destination in recent years. Considering factors such as strong economic growth, increased foreign investment interests, premium waterfront properties for sale in Abu Dhabi and high rental yield opportunities, the real estate market of the emirate of Abu Dhabi continues to expand in 2025. People who seek passive income or who prefer living a splendid lifestyle should explore Abu Dhabi for their real estate investment.
Abu Dhabi boasts several island developments such as Al Fahid Island, Yas Island, Saadiyat Island, Al Reem Island and Jubail Island. All these island projects are prone to offer scenic locations and high-end living standards. The demand for real estate in every project is increasing over time because people from all across the globe come to Abu Dhabi for various purposes, including real estate investment and business ventures.
If you are planning to invest in Abu Dhabi then you should be aware of a few factors such as estimated rental yields, capital appreciation potential, accessibility and development timelines before making any investment decision to secure a profitable deal. Continue reading this blog to explore prominent investment locations in Abu Dhabi and compare the ROI potential of properties in Fahid Island and other island developments.
Al Fahid Island: A Closer Look at Aldar’s Coastal Marvel
Al Fahid Island by Aldar Properties is an island development located just off the coast of Abu Dhabi, between Jubail Island and Yas Island. Deemed a premier waterfront destination that is known for offering a perfect blend of nature, luxury and pristine. It is a properly planned development that allows people to enjoy a comfortable and relaxing living environment away from the hustle and bustle of the city. However, all sorts of modern facilities are also available. In addition to that, this waterfront neighborhood is also seamlessly accessible from several key areas of Abu Dhabi such as Yas Island, Saadiyat Island and Downtown Abu Dhabi.
It is a mixed-use island development that comes with a range of upscale residential, hospitality and lifestyle elements, redefining the perfection of the utmost living. Fahid Island’s master plan includes 4 to 7-bedroom villas for sale in Abu Dhabi, luxury apartments and townhouses, offering diverse living experiences and catering to the various needs of investors. Features such as private beach access, waterfront properties for sale in Al Fahid Island, boutique hotels, retail promenades, a variety of recreational spaces, eco-friendly infrastructure, lush landscapes and kids’ play areas make it a sustainable and family-friendly community.
Al Fahid Island is in its early stage of development and the development work is ongoing. That’s why, investment in this project has a strong potential for high ROI because property value is expected to increase further. Also, investors’ interests are growing gradually in this project. Let’s consider its facilities and amenities, waterfront features, proximity to prime areas, high demand for properties and growth potential. Investors are likely to generate significant returns on investment, which can be even greater than other island developments in Abu Dhabi.
Comparative Analysis of Other Coastal Developments
Saadiyat Island
Home to several popular museums and art galleries such as the Zayed National Museum, Louvre Abu Dhabi and upcoming Guggenheim Abu Dhabi, Saadiyat Island is called the cultural hub of the United Arab Emirates. Also dubbed “Island of Happiness”, this island offers an upscale living environment, allowing residents to live as per their own standards.
It spans over 27 sq. km and is located 500 meters off the coast of Abu Dhabi. Sheikh Khalifa bin Zayed Street (E12) connects it with the main city. Furthermore, this island development is divided into seven districts. Properties for sale in Saadiyat Island include luxury villas, apartments and townhouses.
The average annual rental value of a studio apartment in Saadiyat Island is AED 61,000 and that of a 1-bed is AED 107,000. The average annual rental value of a 3-bed villa in this area is AED 397,000 and that of a 4-bed is 506,000. The cost of a studio apartment for sale in Saadiyat Island is AED 1,017,500 and the price of a 1-bed apartment is 1,667,500. The price of a 2-bed villa for sale in Saadiyat Island is AED 6,960,000.
If you invest in a studio apartment in Saadiyat Island, you can expect 4.46% ROI and if you invest in a 1 5-bedroom apartment then your ROI can reach up to 8.56%. On the other hand, if you invest in a 5-bedroom villa in Saadiyat Island then you can expect 6.31% ROI and an investment in a 6-bed villa can produce 6.08% ROI.
Yas Island
Yas Island is one of the best residential islands in Abu Dhabi, UAE. It is home to Yas Mall, Yas Marina Circuit, Ferrari World and Yas Waterworld. Properties for sale in Yas Island are perfectly designed to elevate the living standards of residents. It is well-connected to Abu Dhabi, offering easy accessibility. It spans over 25 square kilometers and comes with a variety of real estate investment opportunities, catering to investors of diverse interests. Premium amenities, entertainment facilities and recreational facilities make it a family-friendly community, attracting luxury enthusiasts.
The average annual rental value of a studio apartment in Yas Island is AEd 71,000 and the yearly rental value of a 1-bed apartment is AED 91,000. The average annual rental value of a 2-bedroom villa in this area is AED 171,000, and that of a 3-bedroom villa is AED 258,000. The cost of a studio apartment for sale in Yas Island is AED 929,000 and that of a 1-bed is AED 1,416,000. The selling price of a 1-bed villa for sale in Yas Island is AED 1,040,000 and the price of a 2-bed villa is AED 1,265,000.
People who invest in a studio apartment can expect a 7.28% ROI. An investment in a 1-bedroom apartment in this island neighborhood can produce roughly 6.92% ROI. A 2-bedroom villa investment in Yas Island can offer 5.81% ROI and a 3-bed villa can generate 5.51% ROI.
Al Reem Island
Al Reem Island is a natural island which is developed by Aldar Properties PJSC. Located 600 meters off the northeastern coast of Abu Dhabi, it extends seamless connectivity to key areas such as Saadiyat Island and Al Maryah Island. It is also considered one of the most sought-after areas for living a deluxe life in Abu Dhabi. It is a mixed-use community that features premium residential options such as penthouses for sale in Abu Dhabi. Its easy connectivity to the city, scenic waterfront developments, futuristic facilities and amenities and vibrant living atmosphere enhance its captivation.
The average annual rental value of a studio apartment in Al Reem Island is AEd 61,000. The yearly rental value of a 1-bed apartment in the same area is AED 81,000. The average annual rental value of a 3-bedroom villa in this area is AED 248,000 and that of a 4-bed villa is AED 270,000. The cost of a studio apartment for sale in Al Reem Island is AED 723,000 and that of a 1-bed apartment is AED 1,017,000. The price of a 2-bed villa for sale in Al Reem Island is AED 1,890,000.
If you invest in a studio apartment in this neighborhood, you can earn 8.64% ROI. If you invest in a 1-bedroom apartment then your ROI can reach 7.80%. On the other hand, an investment in a 1-bedroom villa in Al Reem Island can generate 9.42% ROI and an investment in a 5-bedroom villa can offer 7. 26% ROI.
Al Raha Beach
Al Raha Beach is a mixed-use development in Abu Dhabi. This coastal neighborhood comes with a wide range of living options such as apartments, townhouses and villas for sale in Al Raha Beach. Upscale properties are perfectly designed to offer scenic views of the sea, allowing residents to experience the utmost extravagance. It is a vibrant community that is aimed at offering a perfect blend of luxury, serenity and convenience. Spans over 52 million square meters, and this area is also located near key areas like Yas Island.
The average annual rental value of a studio apartment in this area is AED 66,000 and that of a 1-bed is AED 82,000. The yearly rental cost of a 2-bedroom villa in this area is AED 263,000 and the annual rental price of a 3-bed villa is AED 353,000. The cost of a studio apartment for sale in Al Raha Beach is AED 997,000 and the price of a 1-bed apartment is AED 1,303,000. The cost of a 2-bed villa is AED 2,083,000.
An investment in a 4-bedroom apartment in Al Raha Beach can produce up to 7.08% ROI and an investment in a 2-bed apartment can generate roughly 6.47% ROI. If you invest in a 4-bedroom villa in this area, you can expect a 7.44% return on investment.
Conclusion:
Abu Dhabi has become a popular real estate investment destination. People from all over the world come to live here, enjoy its luxury lifestyle and offerings and start and expand their businesses. The capital of the UAE boasts several island developments such as Al Fahid Island, Yas Island, Saadiyat Island, etc. All of these island projects are considered popular investment choices because they offer scenic views, luxury living and high-end facilities.
Furthermore, investors can also generate significant returns on investment by investing in their favorite properties for sale. It is hard when we have to choose an investment area on the basis of ROI because each area offers considerable returns. However, Al Fahid Island is the latest one among these and it is in its initial development stages. Given this, it has the potential to offer a marginally high ROI and meet the long-term investment objectives of investors.
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FAQs
Is Al Fahid Island a good investment in 2025?
Yes. It is considered a promising investment choice in 2025 because it is in its early stages of development. Prices of properties are comparatively low and investors can expect a significant increase in property prices in coming years. Based on this, it can be stated that Al Fahid Island is a good investment choice in Abu Dhabi in 2025.
Is Fahid Island suitable for families?
Yes. It is a family-friendly island development that features kids’ play areas, parks, playgrounds, eco-friendly infrastructure and a peaceful living environment.
Can foreigners buy real estate in Fahid Island and obtain a long-term residency option?
Yes. It is a freehold development. It allows foreigners to purchase and own all types of residential and commercial properties for sale. Furthermore, if you purchase a property worth AED 2 million then you can also obtain a 10-year renewable residency visa and stay here for an extended period.
What is the future outlook for Al Fahid Island real estate prices?
If we consider its current development status, its strategic location, available facilities and amenities and waterfront living spaces then we can estimate that the prices of real estate in Al Fahid Island will increase over time.
