Abu Dhabi, the UAE’s capital, is rapidly establishing itself as a global leader in luxury real estate, tourism and a growing branded residences hotspot. Branded residences in Abu Dhabi are being launched and selling out at a fast pace in popular hotspots like Saadiyat Island, Al Reem Island, Corniche and Yas Island.
We believe its strategic location, rich cultural offerings, and ambitious government initiatives create the perfect environment for continued growth of the sector. In our opinion, this growth is also closely tied to a booming tourism sector, which draws millions with world class attractions and gracious welcoming hospitality.
This article explores what factors are driving Abu Dhabi’s transformation into a branded residences hotspot.
Abu Dhabi’s Real Estate Market
Surge in Luxury Transactions
The real estate market in Abu Dhabi is thriving, with sales of luxury properties leading the charge.
According to market data from ValuStrat in the first four months of 2025, transactions for properties valued at AED 7 million (USD 1.9 million) and above reached AED 6.3 billion (USD 1.7 billion), a 5% increase from the same period in 2024.
More than half of these deals involved properties exceeding AED 10 million (USD 2.7 million), this real world data clearly demonstrates strong demand for premium assets.
The secondary market is also heating up, with resale activity jumping 158% year-on-year to nearly AED 3 billion (USD 816 million) by April 2025.
Super luxury resales alone accounted for AED 2.6 billion (USD 707 million), or 60% of this volume.
The Growth of Branded Residences
These luxury residential properties tied to prestigious international hotels and luxury brands are attracting high net worth individuals (HNWIs), investors, and property purchasers, from around the globe, and they are one of the fastest growing sectors of luxury real estate.
Branded residences are a standout feature of the growth in Abu Dhabi. In 2025, launches of these world class projects are expected to quadruple, with around 25 new developments launchedor slated for announcement.
Changing Investor Landscape
Investor profiles have shifted since 2024. Early dominance by Russian and CIS buyers has waned, replaced by growing interest from the UK, US, UAE nationals, and other GCC countries. Nearly half of buyers are end users long-term residents opting to purchase rather than rent, while the rest are investors eyeing capital gains.
Key areas like Saadiyat Island, Yas Island, Al Reem Island, and Al Hidayriyyat are focal points, with the latter already surpassing 20% of its 2024 sales volume in 2025 alone.
Regulatory and Market Support
Recent regulatory updates in Abu Dhabi’s real estate sector aim to enhance governance and protect investors, boosting overall confidence in the sector.
Abu Dhabi’s Tourism Sector
Record Visitor Numbers
Tourism is a vital engine for Abu Dhabi’s growth. In 2024, the emirate welcomed 5.2 million visitors, a 28.7% increase from the previous year, with 4.8 million hotel guests recorded in the first ten months alone, according to the Department of Culture & Tourism
By February 2025, hotel guest numbers hit 800,000, reflecting sustained momentum. We note that major markets driving this influx include India, China, Russia, the UK, and Saudi Arabia, drawn by a mix of cultural and entertainment offerings.
Hospitality Sector Strength
The hospitality sector mirrors the visitor number success. In March 2025, hotel revenues reached AED 611 million (USD 166 million), with room bookings contributing AED 345 million (USD 94 million) and food and beverage services adding AED 228 million (USD 62 million).
Occupancy rates averaged 69%, with a revenue per available room (RevPAR) of AED 486 (USD 132). Five-star hotels led the pack, hosting 205,000 guests, while four star properties and serviced apartments also saw strong demand.
Expanding Attractions
Abu Dhabi’s appeal stems from its diverse attractions. Cultural landmarks like the Louvre Abu Dhabi and the forthcoming Guggenheim Abu Dhabi attract art enthusiasts, while Yas Island’s theme parks and the Formula 1 Grand Prix draw thrill-seekers.
The upcoming Harry Potter World at Warner Bros World, and the recently announced Disneyland Abu Dhabi on Yas Island will further elevate its growing reputation as a family friendly destination Yas Island alone recorded 38 million visits in 2024.
Strategic Tourism Initiatives
At the 2025 Arabian Travel Market (ATM), the Department of Culture and Tourism Abu Dhabi (DCT Abu Dhabi) unveiled partnerships with travel operators, hotel groups, and digital platforms to target Europe, Saudi Arabia, and Indian markets.
These efforts align with the Tourism Strategy 2030, which aims to attract 39.3 million visitors annually by decade’s end, bolstered by plans to expand hotel capacity to 50,000 rooms.
Branded Residences: Key Projects in Focus
- Jacob & Co Beachfront Residences: Luxury homes on Saadiyat Island with Arabian Gulf views.
- Brabus Residences Bespoke properties on Al Reem Island, inspired by the German automotive brand.
- Waldorf Astoria Residences: Furnished units on Yas Island overlooking the golf course and marina circuit; sold out in one day.
- Elie Saab Waterfront: A visually striking project on Saadiyat Island, echoing the designer’s couture aesthetic.
- Mandarin Oriental Residences: 228 premium homes near cultural landmarks.
- Nobu Residences: Set a record with a USD 37.3 million penthouse sale on Saadiyat Island.
- HENGE Residences: A 166-unit project on Saadiyat Island, featuring Italian design craftsmanship.
Branded Residences in Abu Dhabi Competitive Pricing Advantage
Prices range from AED 2,500 to AED 4,000 (USD 681 to USD 1,089) per square feet, a competitive edge over markets like Dubai or Ras Al Khaimah, where similar properties can cost up to 50% more.
In our opinion, this gap, combined with a market that is still expanding, suggests significant room for value appreciation as more projects come online. This is echoed by Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate
“Abu Dhabi has firmly positioned itself as a premier destination for luxury and lifestyle-led investments, property prices in branded projects now average AED 2,500 to AED 4,000 per sq. m., depending on location, which is significantly lower than comparable properties in Dubai and Ras Al Khaimah making it very attractive for investors from around the world“
Demand for branded residences is being driven by both tourism and real estate trends. Visitors experiencing Abu Dhabi’s luxury offerings often become buyers, while investors see long term potential in a market with fewer branded options than its neighbours.
Abu Dhabi Branded Residences Future Outlook
Government Vision and Goals
The Tourism Strategy 2030 is a cornerstone of Abu Dhabi’s future. Beyond its 39.3 million visitor target, it aims to create 178,000 jobs and boost the sector’s GDP contribution to AED 90 billion (USD 24.5 billion) by 2030. We believe this ambition supports real estate growth by increasing demand for accommodation and investment properties.
Real Estate Growth Potential
The branded residences sector is poised for expansion. With only a handful of projects in 2024 compared to over 25 planned for 2025, supply remains tight against rising demand. New developments like Fahid Island, a mixed-use project with a USD 10.9 billion gross development value, will add thousands of residences, further diversifying options for buyers.
Market Positioning
Abu Dhabi’s competitive pricing and strategic investment, position it as a rising star among global luxury branded real estate markets. The entry of international brands like, Waldorf Astoria, ELIE SAAB, Mandarin Oriental and W Hotels (among others) working alongside local developers, signals confidence in its trajectory.
The quadrupling of branded project launches in 2025, coupled with record-breaking sales and visitor numbers, underscores its momentum. With government backing and a pipeline of ambitious developments, the emirate is not just keeping pace with regional rivals it’s setting a new standard for luxury branded living and travel in the UAE.
FAQ’S
1. What makes Abu Dhabi a prime destination for branded residences in 2025?
Abu Dhabi’s branded residences are gaining traction due to a sharp increase in project launches, with dozens introduced in 2025 compared to just a few in 2024. These properties, linked to renowned names like Waldorf Astoria and Elie Saab, appeal to affluent buyers with prices ranging from USD 681 to USD 1,089 per square foot which far below regional competitors. A robust real estate sector, bolstered by USD 1.7 billion in high-end deals early in 2025, and a vibrant tourism industry hosting millions annually create a compelling investment case.
2. What is fueling the expansion of Abu Dhabi’s high-end property market?
The luxury property market in Abu Dhabi is thriving, driven by strong interest from wealthy individuals, global investors, and local residents. Early 2025 saw USD 1.7 billion in transactions for properties above USD 1.9 million, up 5% from last year, with resales soaring 158% to USD 816 million. Enhanced regulations, attractive pricing compared to nearby emirates, and prime locations like Saadiyat and Al Reem Islands are key catalysts for this growth.
3. How does Abu Dhabi’s tourism sector boost its branded residences market?
A flourishing tourism industry, with 5.2 million visitors in 2024 and 800,000 hotel guests by February 2025, showcases Abu Dhabi’s luxury appeal to affluent travelers, many of whom later invest in properties. Iconic sites like the Louvre Abu Dhabi, Yas Island’s entertainment hubs, and forthcoming attractions like the Harry Potter theme park and Disneyworld will draw global crowds and attention to the region. Ambitious plans to reach 39.3 million visitors by 2030 amplify demand for upscale residences.
4. Who is investing in Abu Dhabi’s branded residences in 2025?
The buyer pool in 2025 includes a mix of UK, US, UAE, and GCC nationals, shifting from earlier Russian and CIS dominance. About half are residents choosing ownership over renting, reflecting trust in the market’s stability, while others are investors seeking long term gains. High activity in areas like Yas Island, Saadiyat Island, and Al Hidayriyyat highlights their appeal as premium investment zones.
5. Why are Abu Dhabi’s branded residences an attractive investment?
Abu Dhabi’s branded residences are more affordable than those in Dubai or Ras Al Khaimah, offering significant growth potential in a market with limited supply. The surge from a few projects in 2024 to over 25 in 2025, alongside landmark sales like a USD 37.3 million penthouse, signals strong demand.
