Rental Yields and ROI in Hudayriyat Island in 2025
Hudayriyat Island is one of Abu Dhabi’s newest lifestyle and leisure destinations. While still in the early stages of residential development, the island is gaining attention from forward-looking investors. With a focus on waterfront living, wellness, and sustainable design, Rental Yields and ROI in Hudayriyat Island in the coming years are expected to strengthen significantly.
Current Investment Landscape
As of mid-2025, Hudayriyat Island is still in the early phases of its residential expansion, with limited but high-quality inventory being introduced by government-backed developers such as Modon. Properties are being released gradually, which supports price stability and long-term value.
Expected Rental Yields
Given its exclusive positioning and strong lifestyle appeal, projected gross rental yields for early investors range from:
- 1-bedroom apartments/townhouses: 6.5% – 7.2%
- 2- to 3-bedroom villas: 5.5% – 6.5%
- Beachfront and branded residences (future releases): Expected to deliver 6%–7% due to strong short-term rental demand
As the area matures and more lifestyle facilities open, rental demand is expected to increase significantly, particularly from active professionals and families seeking beachfront living within Abu Dhabi city limits.
ROI Potential
With limited supply and growing infrastructure, total ROI (rental income + capital appreciation) is expected to be in the range of 9% to 12% annually over the next 3 to 5 years.
Key ROI drivers include:
- Scarcity of similar beachfront developments in central Abu Dhabi
- Government-backed master planning ensuring high design and sustainability standards
- Tourism and leisure infrastructure, including bike trails, adventure parks, and sporting venues
- Upcoming residential zones, offering early investment advantage
What Makes Hudayriyat Attractive
- Prime waterfront location close to mainland Abu Dhabi
- Low-density master plan with a focus on privacy and open space
- Eco-conscious development aligned with Abu Dhabi’s sustainability goals
- Active lifestyle amenities that attract premium tenants and tourists alike
Risks and Considerations
- Limited current resale data due to the newness of the market
- Longer investment horizon may be required as the community matures
- Market volatility possible in early stages due to construction timelines and supply fluctuations
Hudayriyat Island offers promising rental yields and ROI potential for investors who seek first-mover advantages in emerging luxury zones. With the government’s vision for a sustainable, active waterfront destination, long-term returns are expected to strengthen as infrastructure completes and demand increases.