Fahid Island – The real estate jewel in Abu Dhabi’s crown
| With the upcoming launch of Fahid Beach Terraces in Abu Dhabi. Like ourselves, many of you are seeing the potential. As always, we like to provide you with as much information as possible to make informed decisions based on trends, previous numbers and potential forecasted pitfalls. Fahid Island Investment Overview Here’s a clear and investor-focused overview of Fahid Island in Abu Dhabi, detailing expectations for rental yields, capital appreciation, and how it compares to other local island developments. Rental Yields Early projections suggest annual gross rental yields of 4–5% for 1–3 bedroom apartments (based on today’s prices). Some marketing sources cite yields as high as 7–10%, although these predictions may be overly optimistic. Capital Appreciation Potential Fahid Island has strong long-term growth potential due to several factors: – There is a limited supply of beachfront units and villas. Its strategic location between Saadiyat and Yas Islands, near major attractions and infrastructure. – Development by Aldar, a reputable and financially stable developer. – Sustainability certifications such as Fitwel, LEED Platinum, and Estidama 3 Pearl enhance the appeal for tenants and investors. Comparable areas have exhibited robust appreciation: Saadiyat Island – On Saadiyat Island, luxury villas have appreciated by over 45% from 2021 to the current day. – Reports indicate that all properties on Saadiyat have increased in value by 45% over the past three years. -One investment project account noted a 171% price increase for 2–3 bedroom apartments on Saadiyat since 2022. Yas Island Apartments (1 Bedroom): Average sale price has risen significantly from AED 836,000 in 2020 to about AED 1,290,000 in 2025, an increase of approximately 54%. Villas: – 4-bedroom villas appreciated from around AED 4.3 million in 2020 to AED 5.6 million in 2025, reflecting a 30% increase.Larger – 5- to 6-bedroom villas experienced even more substantial gains, with increases ranging between 33–61% over the same period. Recent Year-on-Year Trends (2024–2025): – Overall premium property segments in Abu Dhabi, including Yas Island, saw average price growth of around 5.3% in Q2 2025. – For luxury apartments on Yas Island, the annual return (ROI) stands at approximately 6.99%, with average sale prices at AED 1.87 million. – Luxury villas are averaging AED 4.68 million, delivering a 5.53% ROI. – In 2024, Yas Island saw a per-square-foot price increase of roughly 11.3%, marking it as one of the fastest-growing areas in Abu Dhabi. Early-Mover Advantage: As Fahid Island is in its initial launch phase, it offers lower entry prices with significant upside potential as infrastructure and demand grow. Aldar promptly launched a second residential tower following high demand on the same day. Fahid Beach Terraces is on the waterfront. This is where you see the most premium options with the most significant potential. Comparison with Other Abu Dhabi Islands Saadiyat Island: Known as a cultural hub, featuring the Louvre and a planned Guggenheim. It has historically strong appreciation (12–45% in recent years). Yas Island: A tourism and leisure powerhouse, offering attractions like the F1 Grand Prix and Ferrari World. Investors report excellent short-term rental yields due to high tourist demand. Reem Island: A mixed-use development with high supply, experiencing some rental spikes, but facing challenges like lower appreciation and oversupply. Maryah Island: A fast-growing financial district anchored by ADGM, known for its limited supply and high appreciation potential. |
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| Final Thoughts for Investors Fahid Island presents a compelling value proposition with its limited beachfront real estate, prestigious development by Aldar, eco-conscious design, and early pricing advantages. The conservative rental yield expectation is 4–5%, with potential upside to 7–10% due to strong rental demand. Capital appreciation is anticipated to be robust as the island matures. Saadiyat Island serves as a benchmark for capital appreciation in Abu Dhabi and remains a smart choice for those seeking long-term value growth in a proven cultural district. Yas Island is ideal for short-term rental strategies, thanks to the influx of tourism and events. Reem Island may appeal to buyers looking for lower entry-level options, but they should expect slower appreciation and higher competition. Meanwhile, Maryah Island offers prestige and a limited supply with robust business demand potential. Fahid Island for us offers a blend of all of the above. We are fortunate to have witnessed the future development in scale, and anyone who purchases in the initial stages will be sitting on some of the strongest real estate in the UAE. |
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