Abu Dhabi’s real estate sector is set for a major boost with the announcement of Disneyland Abu Dhabi. The city’s property sector has witnessed major growth in recent years, driven by strong investor interest.
In the first quarter of 2025 alone, real estate transactions in Abu Dhabi surged 34.5 percent to $6.89 billion. A recent report by the Abu Dhabi Real Estate Center also highlighted continued FDI activity, with 384 transactions valued at AED1.582 billion concluded by investors from 68 nationalities in Q1, up from 58 nationalities during the same period last year.
“The announcement of Disneyland Abu Dhabi is a game-changer for the region and will undoubtedly generate immediate excitement and investor interest. We expect increased inquiries and speculative activity, particularly in areas adjacent to the project,” says Matt Gregory, senior director – strategy at dubizzle.
Last week, Abu Dhabi announced that it is officially getting its own Disney Theme Park Resort following a strategic partnership agreement between The Walt Disney Company and Miral.
Property prices to rise in surrounding areas
The Abu Dhabi Real Estate Center revealed its recent report that Yas Island, where Disneyland will be located, recorded the second-highest real estate transactions last quarter at AED3.6 billion.
When asked about the increase in property values in Disneyland Abu Dhabi’s surrounding vicinity, Gregory said, “I believe, particularly in Yas Island, Saadiyat Island and close-by districts, could appreciate steadily over the years. As supporting infrastructure develops and Disneyland nears completion, investor sentiment will likely continue to strengthen.”
Yas Island’s popularity among real estate investors is not new. The area continues to perform highly across several segments of the property sector. In Q1 2025, Yas Island claimed the top position for purchasing luxury apartments, boasting an average sales price of AED1.87 million, according to dubizzle.
“If we look at comparable examples globally, large-scale theme parks often lead to long-term property value uplift, both in residential and commercial segments,” he added.
Yas Island also leads the market for both buying and renting luxury villas, where the average sales price has reached AED4.68 million and rents hover around AED229,000, according to dubizzle search trends. Last quarter, Yas Island achieved the highest ROI of 6.99 percent in the luxury apartment sector.
“Just the announcement alone serves as a confidence signal for both local and international stakeholders, reinforcing Abu Dhabi’s long-term vision and attractiveness as a global lifestyle and tourism hub,” added Gregory.
Hospitality and tourism boost
In addition to the expected real estate boost, Abu Dhabi is set to witness a major increase in tourists seeking to experience the new Disney attraction. Strategically located, Yas Island serves as a gateway connecting major tourism markets across the Middle East, Africa, India, Asia and Europe. This project will become Disney’s seventh theme park destination worldwide, following its parks in California, Florida, Tokyo, Paris, Hong Kong and Shanghai.
“In many ways, Abu Dhabi has already laid the foundation for a tourism-driven real estate economy. With globally recognized attractions like Ferrari World, Warner Bros. World and SeaWorld Abu Dhabi, the emirate has positioned itself as a major destination for entertainment and family tourism,” added Gregory.
Abu Dhabi’s tourism sector continues to thrive, with the city welcoming 1.4 million overnight guests in the first quarter of 2025, reflecting sustained growth compared to the same period last year, reported the Department of Culture and Tourism – Abu Dhabi. The tourism sector is also on track to reach its target of contributing AED62 billion to the economy in 2025, a 13 percent increase from 2024, supporting 255,000 jobs across the emirate
“The addition of Disneyland Abu Dhabi builds on this momentum and further cements Abu Dhabi’s status as a world-class leisure hub. We anticipate this development will accelerate investment into mixed-use real estate, hospitality and residential communities that cater to both tourists and long-term residents drawn by the emirate’s evolving lifestyle offering,” Gregory said.
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Tourism-related commercial spaces to see positive spillover effect
Abu Dhabi’s Tourism Strategy 2030 continues to chart a bold course for growth, aiming to attract 39.3 million visitors, create 178,000 new jobs in the tourism sector, and contribute AED90 billion to the GDP by 2030 while cementing the emirate’s legacy as a place of traditions and modern cultural explorations.
In the first 10 months of 2024, hotels in Abu Dhabi welcomed 4.8 million guests and saw a 26 percent increase in international guests. This number is set to grow further as major developments like Disneyland Abu Dhabi take place.
“The hospitality and retail sectors could likely see the most immediate uplift, as a world-class attraction like Disneyland will drive significant increases in visitor numbers, creating demand for hotels, resorts, holiday homes, F&B outlets and entertainment venues,” Gregory added.
Commenting on the development’s impact on other sectors, he added, “Over time, the residential sector will benefit from increased employment opportunities and infrastructure development. Commercial spaces, especially those catering to tourism-related businesses, will also see a positive spillover effect.”
In addition to Disneyland, significant entertainment and cultural projects in Abu Dhabi are in the pipeline. This includes the expansion of Warner Bros World Abu Dhabi with the addition of a Harry Potter World. Abu Dhabi also expects construction on the Saadiyat Cultural District to end next year.
Other ongoing developments in the emirate include transforming Hudayriyat Island into a center for sports and adventure and upgrading Yas Waterworld, which will also support the emirate’s tourism and real estate growth.
