Published: 2026-08-21
Hudayriyat Island is now the single largest residential market in Abu Dhabi. According to the H1 2026 Abu Dhabi Real Estate Market Report released by the Abu Dhabi Real Estate Centre (ADREC) and covered by Gulf News on 2026-08-21, the island recorded AED 19 billion in residential sales in the first half of 2026, 27% of the emirate’s total, and led the market for the second consecutive quarter. Saadiyat Island followed with AED 13.3 billion, Al Reem Island and Al Maryah Island together with AED 10.5 billion, and Yas Island with AED 7.3 billion. Investment zones, the districts where foreign nationals can buy freehold property, now hold about 72,000 homes, more than 22% of the emirate’s residential stock. For investors who have so far looked only at Dubai, the capital has become a second, fast-growing destination for real estate capital, with its own leaders and its own pricing logic.
What ADREC reported for H1 2026
The Abu Dhabi Real Estate Centre is the emirate’s property regulator, and its half-year report is the most authoritative picture of where money is going. The district ranking by residential sales value in January to June 2026 is unambiguous: Hudayriyat Island, a master-planned leisure and residential island west of the main Abu Dhabi island, closed AED 19 billion in deals and took 27% of the emirate-wide total on its own. That is more than Saadiyat, the long-established cultural island with the Louvre Abu Dhabi and the Guggenheim site, which sold AED 13.3 billion, and more than Al Reem and Al Maryah combined (AED 10.5 billion), even though Al Reem is the biggest residential hub in the investment zones by number of homes.
The report also stresses that this is not a one-quarter spike. Hudayriyat led the emirate in Q1 2026 and repeated the result in Q2, which means the island has held the top position for the whole of the first half of the year. In a market where residential sales across the emirate nearly tripled year on year to AED 70.4 billion, keeping a 27% share through two quarters requires a steady stream of launches and buyers.
District ranking: where Abu Dhabi’s AED 70.4 billion went
| District | H1 2026 residential sales | Note |
|---|---|---|
| Hudayriyat Island | AED 19 billion | 27% of emirate total, leader for two consecutive quarters |
| Saadiyat Island | AED 13.3 billion | Second place, cultural district, villa and branded-residence market |
| Al Reem Island and Al Maryah Island | AED 10.5 billion (combined) | Al Reem is the largest investment zone by stock, Al Maryah is the ADGM financial centre |
| Yas Island | AED 7.3 billion | Entertainment and leisure island, large ready and off-plan supply |
| Emirate total | AED 70.4 billion | Up from AED 25.3 billion in H1 2025, off-plan 89% of value |
Together the four leading island districts account for roughly AED 50 billion, or about 71% of all residential sales value in the emirate. The rest is spread across the mainland and the other investment zones. The concentration matters for anyone entering the market: liquidity, resale depth and rental demand are strongest exactly where sales volumes are strongest, and in 2026 that means the islands.
Why Hudayriyat Island is selling
Hudayriyat was, until recently, known mostly as a sports and leisure destination, with cycling tracks, beaches and outdoor venues, and had almost no residential stock for sale. The picture changed when Modon, the Abu Dhabi developer responsible for the island’s master plan, began releasing residential communities. The market response has been extraordinary by any standard. In December 2025 Modon announced that Bashayer, its waterfront community on the island, sold out within one day of launch. In 2026 the final phase of Bashayer, about 300 residences, also sold out in a single day and generated approximately AED 1.25 billion; Modon noted that 71% of those buyers were new customers to the developer.
Several factors explain the demand. First, the product is new: buyers are getting first-release prices in a district that had no secondary market, which historically is where early capital growth happens in the UAE. Second, the island’s positioning is lifestyle-led, with waterfront promenades, beach access and sports infrastructure already in place rather than promised for later. Third, Hudayriyat is one of the six districts that ADREC expects to deliver 77% of Abu Dhabi’s new housing supply through 2030, so the pipeline of launches will continue. Fourth, the broader Abu Dhabi market is pulling in foreign money at record pace: foreign direct investment into property reached AED 13.8 billion in H1 2026, up 309% year on year, with buyers from 116 countries.
Investment zones: 72,000 homes open to foreign buyers
Abu Dhabi’s real estate market works differently from Dubai’s in one important respect. Foreign nationals, both residents and non-residents, can own property only inside designated investment zones. ADREC’s report puts the stock in these zones at about 72,000 residential units, more than 22% of all homes in the emirate. Al Reem Island is the largest zone by far, with around 27,500 units, followed by Al Raha, Yas Island and Saadiyat Island. Hudayriyat, although smaller in existing stock, is adding units quickly through off-plan launches.
For a foreign investor this geography defines the shortlist. The choice is not between hundreds of neighbourhoods but between a dozen islands and coastal districts, each with a different profile: Al Reem for volume and mid-market apartments next to the financial centre, Saadiyat for premium villas and culture, Yas for leisure and short-term rental demand, Al Raha for established family communities, and now Hudayriyat for new waterfront launches. Rents are moving in the same direction as sales: ADREC recorded new-lease apartment rents up 21% in investment zones in H1 2026, with villa rents up 16%.
Abu Dhabi versus Dubai: what changes for investors
Dubai remains by far the larger market, with sales well above AED 200 billion per half-year and a much deeper resale pool. But the gap in growth rates has narrowed sharply. Abu Dhabi residential sales nearly tripled in a year, total transactions across all segments rose 112% to AED 117 billion, and the emirate has added eight new investment zones, bringing the total to 50. At the same time the capital’s supply pipeline is concentrated in the hands of nine major developers who control 76% of the projects, which reduces the delivery risk associated with small builders.
In practical terms the capital now offers what many investors have been looking for: first-release pricing in new districts, a regulator that publishes detailed half-year data, strong government-linked developers, and rental growth that is currently outpacing Dubai in percentage terms. The trade-off is lower liquidity and fewer ready units, which is why many buyers combine an off-plan purchase on Hudayriyat or Saadiyat with a ready, income-producing unit in Al Reem or Yas.
What this means for businesses and relocating founders
Real estate is rarely a stand-alone decision for our clients. A founder who buys a home on Hudayriyat or Saadiyat usually also needs a UAE company, a residence visa and a local bank account. Abu Dhabi offers its own free zones, including ADGM on Al Maryah Island, as well as mainland licensing, and property ownership above AED 2 million qualifies the owner for a long-term Golden Visa. Holding the property through a UAE company, or buying through an ADGM special purpose vehicle, is a common structure for family offices and investors who want clean succession and reporting.
- Confirm the district is an investment zone before signing any reservation form; foreign ownership outside these zones is not possible.
- For off-plan purchases, check that the project and its escrow account are registered with ADREC, and read the payment plan against the handover date, which for new Hudayriyat launches typically falls in 2028-2029.
- Decide on the holding structure early: personal name, UAE company or ADGM SPV each have different costs, disclosure and inheritance implications.
- Plan the visa route: a property of AED 2 million or more supports a 10-year Golden Visa application, while a company licence supports employee and partner residence visas.
- Open the bank account in parallel with the purchase, as developers and the land registry expect payments from a UAE account in the buyer’s or the buyer’s company’s name.
How Atlant Capital can help
Atlant Capital works with founders, investors and family offices who are moving capital and operations to the UAE. We set up companies in Abu Dhabi and Dubai, including ADGM structures suitable for holding property, arrange residence and Golden Visa applications for owners and their families, and support corporate and personal bank account opening so that the purchase and subsequent rental income flow through a compliant UAE banking setup. For the broader market context, read our analysis of Abu Dhabi’s plan to add 71,000 homes by 2030.
Conclusion
The H1 2026 ADREC report confirms a shift that started in 2025: Abu Dhabi is no longer a secondary option next to Dubai but a real estate market with its own momentum, and Hudayriyat Island is its new centre of gravity. AED 19 billion in sales, 27% of the emirate, two consecutive quarters in first place and sell-outs measured in hours are signals that institutional and private capital has already made its choice. Investors who want exposure should treat the capital as a separate market with its own rules, starting from the investment-zone map, the developer’s track record and the right holding and visa structure.
FAQ
Which area of Abu Dhabi had the highest property sales in 2026?
Hudayriyat Island led Abu Dhabi in residential sales value in H1 2026 with AED 19 billion, 27% of the emirate’s total, according to ADREC. It was the top district in both Q1 and Q2 2026. Saadiyat Island was second with AED 13.3 billion, followed by Al Reem and Al Maryah islands with AED 10.5 billion combined and Yas Island with AED 7.3 billion.
Can foreigners buy property on Hudayriyat Island?
Yes. Hudayriyat Island is one of Abu Dhabi’s designated investment zones, where foreign nationals, including non-residents, can buy residential property. ADREC counts about 72,000 homes across all investment zones, more than 22% of the emirate’s housing stock. The largest zone by number of homes is Al Reem Island with around 27,500 units.
Who is the developer of Hudayriyat Island?
Hudayriyat Island is master-planned and developed by Modon, an Abu Dhabi developer. Its residential launches on the island, including the waterfront community Bashayer, sold out within a day of release; the final phase of Bashayer alone generated approximately AED 1.25 billion in sales in 2026, with 71% of buyers new to the developer.
Does buying property in Abu Dhabi give a residence visa?
Property worth AED 2 million or more in the UAE qualifies the owner for a 10-year Golden Visa, which also covers the spouse and children. Properties below that threshold can support a shorter investor residence permit subject to current rules. Many buyers combine the purchase with a UAE company licence, which provides residence visas for partners and employees and a corporate structure for holding the asset.
