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Arabian Business
7 days ago
- Business
- Arabian Business
Disneyland Abu Dhabi triggers real estate shift: Price moves, investor interest and new hotspots identified
Disney recently announced a theme park in Yas Island, Abu Dhabi, marking its seventh destination globally. According to real estate experts, the announcement is already positively impacting the capital's property market. While the project is years from completion, early signs point to growing investor interest, increased inquiries for off-plan units, and early price adjustment discussions. 'Even for an established, world-class tourism and leisure hub, Yas Island's recent announcement of Disneyland Abu Dhabi is a major touristic coup, and yet another reason why Yas is one of Abu Dhabi's most dynamic residential investment destinations. The news has put Yas firmly in the spotlight and immediately boosted investor confidence in this world-class destination,' Riyad Magdy, Chairman and Founder, Oia Properties, said in an exclusive interview with Arabian Business. Abu Dhabi real estate boom According to recent market data, Abu Dhabi real estate has already been on a growth trajectory prior to Disney's announcement, with April transactions up 15.7 per cent from March, reaching AED 2.9 billion (£615 million), however, a noticeable increase in interest was observed in the week following the announcement. 'There's definitely a growing buzz and a noticeable uptick in interest over the past week. and are confident in the short medium and long-term interest in Yas – and surrounding areas,' Magdy said. Amid rising investor interest in Abu Dhabi's real estate sector, the off-plan segment saw a significant boost. In April, the off-plan sector accounted for over 70 per cent of transactions in locations including Yas Island, Saadiyat Island, and Al Jubail Island. 'Disneyland will have a positive and far-reaching impact on Abu Dhabi as a whole, most notably lifting sentiment on Yas Island and boosting interest in off-plan projects, but also reaching into all surrounding areas in mainland Abu Dhabi. It will also add impetus to new emerging areas such as Zayed City,' Magdy explained. Additionally, the short-term and long-term rental market is also set to benefit from the uptick. In April, over 18,000 rental transactions totalling AED 1.3 billion was recorded. Experts anticipate that Disneyland Abu Dhabi will further boost this number. 'Yas has always been popular for residential investors looking for short-term rentals – the integration of premium residences, plus the existing exhilaration from Ferrari World and Yas Marina Circuit makes the island uniquely appealing, especially with limited hotel inventory. We are seeing increasing traction from those looking for ROI in short-term lettings and vacation rentals,' he said. . 'Disneyland will be a game-changer for Abu Dhabi's property landscape. We predict increased property demand on Yas Island and nearby areas, with buyers seeking high-quality, future-oriented homes,' said Nada Jaouhar, Abu Dhabi Branch Director at Betterhomes. According to the Savills Abu Dhabi Residential Market in Minutes – Q1 2025 report, the Abu Dhabi real estate market is supported by sustained demand, new supply and the emirate's growing international appeal. Average sales rates across the market increased from AED 14,100 ($3,840) per sqm in Q1 2024 to AED 16,200 ($4,410) per sqm in Q1 2025, a 13.4 per cent increase year on year. Although experts believe that it is still early to predict a significant shift in behaviour there is already visible attention from real estate enthusiasts. 'The news cycle has tended to favour Dubai in terms of scale and volume of real estate and tourism announcements, but Disney's endorsement of Abu Dhabi is a major milestone and one that reminds us all of the significant achievements the emirate has made with its own tourism ambitions and destination marketing campaign,' Magdy said. However, the impact is expected to scale beyond the real estate sector, experts believe that hospitality brands will also flock in to cater to the rising demand. 'I predict that hospitality brands will compete for a property on, or surrounding Yas, enhancing Abu Dhabi's hotel inventory, which is smaller when compared to the saturated nature of Dubai's,' he explained. Developments including Etihad Rail further support Abu Dhabi's increased recognition as an international hotspot, providing accessibility and convenience from all the Emirates. The rail's passenger service is expected to launch in 2026, slashing travel time between Dubai and Abu Dhabi to just 30 minutes. For investors looking to tap into Abu Dhabi's real estate market, experts advise consulting with trusted and experienced industry advisors. 'Consulting a trusted real estate advisor is essential for investors eyeing opportunities ahead of Disneyland Abu Dhabi's debut. A qualified expert can help analyse transaction history, price trends, and pinpoint high-growth zones like Yas Island, where property values are expected to rise significantly. They can also guide buyers and investors through off-plan options and projected rental yields to help structure their investment wisely,' Magdy concluded.
Gulf News
28-04-2025
- Business
- Gulf News
In Dubai property, first-time home buyers are driving growth in 2025
Dubai: First-time property buyers are making their presence felt in Dubai over the first four months –they could well be what the market needs to sustain the growth story through the rest of 2025. The first-timers' presence is showing up in developers' sales records, with data showing them to be younger and being residents in the UAE for 3-5 years before taking the decision to buy a home. 'Where it used to be 10-15 years before residents thought of buying a property in Dubai, newer residents are coming in much earlier,' said an estate agent. 'The 2021-22 Dubai property boom was set off by these long-term residents – now, the market is getting the 'short-termers' turning homeowners. In earlier times, you still had to convince many long-timers to buy a property here – these days, new residents in Dubai are thinking how long to wait before they buy.' (The same trend is visible in Abu Dhabi and Sharjah real estate too, market sources add.) With visionary policies, a dynamic economy, and unmatched quality of life, Dubai has created an environment where first-time buyers feel empowered to invest, live, and grow. Dubai's real estate evolution is giving first-time buyers more than just keys to a property—it's giving them ownership of a lifestyle and a future. Throw into the mix the steady stream of overseas investors wanting to park their investments in the UAE through property buys or other assets, it gives the Dubai and wider UAE property market the cushion to see off the geopolitical turmoil. And hopefully, add more fuel to the growth engine that's been the Dubai property market for five years now.) Developers have been quick to spot opportunities with first-time buyers. Their sales talk has been tweaked to give more emphasis to this group rather than just wait for investors wanting to buy a unit and then place it in the rental market. When it comes to the projects, developers are setting them up in emerging parts of the city. Attention is also being given to the apartment sizes and amenities within – if these buyers are not looking for bigger built-up areas, then so be it. More units around the 1,000-1,200 square foot built-up are available in the market. All that potential buyers need to do is look. These details also effectively lower the cost of entry for first-time buyers. (Developers are also going all in on the 'wellness' part of what they are offering beyond the actual buildings and homes too.) It seems to be paying off. Sweet spot on pricing "We've seen a noticeable surge in first-time buyers in their thirties (so far) this year, up by an estimated 25%,' said Riyad Magdy, Chairman of Oia Properties. '(They're') each investing between Dh1.2 million to Dh3 million. 'We put this trend down to increased access to home loans and growing confidence in the investment potential of the Emirates. 'These are residents who are now looking to build lives and families here - mainly Indians and Brits, with some Chinese and Egyptians starting to get in on the act.' Steady on the mortgages Apart from the developer incentives, the other major factor driving first-timers into the property market is the relative ease of access to mortgages. Sure, interest rates have not dropped as much as any had been expecting by now – but that's OK. 'Fixed mortgage rates in the UAE have remained largely stable over the past year, with current rates starting at around 4% for a 3-year fixed period,' said Haider Qureshi, Managing Director of Amity Mortgages. 'This rate stability is offering end-users financial predictability. In Q1-2025 alone, the total value of rental transactions rose by 19% quarter-on-quarter — a trend that's pushing many tenants to consider mortgages as a smarter long-term investment. 'Additionally, more lenders are now expanding their offerings to include mortgage products for non-resident buyers.' All of which adds up nicely in keeping the property growth rates going. Even if the numbers have stabilized from the turbo-charged levels of 2023-24. If the rest of 2025 sees first-timers as active as they were in the first four months, developers have the pool of buyers they need for the new launches and projects that are being delivered. 'Every year after 2021, the Dubai property market keeps asking how long can the growth last,' said the estate agent. 'Each year delivered its own dynamics, like the rush of end-users in 2021-22 and Golden Visas in 2023-24.
