Abu Dhabi’s largest publicly traded developer, Aldar Properties, has announced the master plan for Fahid Island, which has a gross development value of more than AED 40 billion ($10.9 billion), amid sudden growth in UAE real estate market
Aldar said in a statement on Monday that more than 6,000 premium properties are planned for the 2.7 million square metre island, which apartments and townhouses to ultra-luxury villas.
The project will also contain two hotels, one of which will be disclosed shortly, according to Jonathan Emery, CEO of Aldar Development, speaking to The National on the sidelines of the project’s unveiling.
“We anticipate interest in the project from all over the world. We also have devoted local clients who have supported our projects from the beginning,” Mr Emery stated.
The new project, with an 11-kilometer coastline, will be erected in the UAE’s capital between Yas Island and Saadiyat Island.
Aldar paid AED 2.5 billion for Al Fahid Island, a 3.4 million square meter land bank, in January 2023, with the developer estimating a gross development value of AED 26 billion at the time. Aldar stated the transaction consideration would be paid over a five-year period.
The first residential development on Fahid Island, Fahid Beach units, will consist of seven structures, each with 65 units.
The first residential development will include essential infrastructure, such as schools and bridges, ready for people to move in the first quarter of 2029.
Mr Emery expects sales to begin quickly after the Eid holidays, with beginning pricing of AED 3.5 million ($953,029) for a one-bedroom unit.
“This project has been fully funded by the sales generated through our corporate, bonds and sukuk”
Fahid Island “builds on the success of Saadiyat and Yas Islands to create a new benchmark in premium waterfront living, wellness and sustainable design” as mentioned by Mohamed Al Mubarak, Chairman of Aldar
According to real estate firm Cushman & Wakefield Core, residential property sale prices in Abu Dhabi increased by 11% yearly last year due to surging demand and a supply deficit in the emirate.
The Abu Dhabi Real Estate Centre revealed that total transaction values in the emirate grew by 34.5% to AED 25.3 billion from 6,896 agreements in the first quarter of 2025, compared to AED 18.8 billion from 5,773 transactions in the same time previous year.
The UAE’s property market continues to perform well as a result of government programs like as residency permits for retirees and remote workers, the expansion of the 10-year golden visa scheme and overall economic growth.
An influx of wealthy individuals is also boosting the property market. According to Knight Frank, 7,200 millionaires landed in the UAE last year, up from 4,700 in 2023 and 5,200 in 2022.
The UAE has 130,500 dollar millionaires as of December 31, making it the world’s 14th-largest wealth market.
Natural places will take up 30% of Fahid Island’s space and a 10-kilometer landscaped berm park is also proposed. With three bicycle paths that link to Abu Dhabi’s bike loop and running tracks, it will function as the island’s wellness and fitness corridor, according to Aldar.
The waterfront promenade will offer a variety of retail, dining and art experiences, while Coral Drive, the island’s boutique retail avenue, will have outlets, concept stores, art galleries, a ballet school, cafes and public artworks.
The island will also include an international school.
Disney theme park’s impact
This comes after Miral announced plans to build a Disney theme park on Yas Island, which are likely to boost Abu Dhabi’s tourism potential and property demand on the island.
Mr Emery stated that the Disney announcement has “really accelerated sales in Abu Dhabi in a really positive way”.
Aldar announced last Monday that it sold all 133 residences at Waldorf Astoria Residences Yas on launch day, earning AED 850 million in sales.
Property Market Outlook
The UAE’s housing market is strong and “global volatility reinforces the attractiveness of the UAE,” according to Mr Emery.
“Everything is still green; we’re not experiencing any lag at all. We’re cautious but enthusiastic.
In a report published last week, ratings agency Fitch forecasted that Dubai property prices will decline by 15% this year due to market glut. It anticipates that unit deliveries in 2025 and 2026 will quadruple compared to 2022 to 2024, “which could cause a price correction”.
“We are still very positive and things can move quite quickly,” Mr. Emery explained.
The company intends to launch 12 more projects in the Emirates this year, including one project per month.
“We respond as dynamically as we possibly can in terms of choosing where and when and which project, so that can change.”
It also plans to introduce cheap properties in Abu Dhabi and Dubai before the end of the year.
“There is a high demand for more affordable products and we will be addressing that very shortly this year.”
Compared to Dh33.6 billion last year, the Abu Dhabi-listed company anticipates development sales of between Dh36 billion and Dh39 billion in 2025.
According to Mr Emery, Aldar intends to meet its sales targets this year.
“We’ve given an outlook for the year and we remain as we predicted.”
