Al Reem Island has been the best-kept secret of the Persian Gulf for years. A 633-hectare island 500 meters off the coast of Abu Dhabi that started as a bet by construction companies and is now where the world’s most aggressive investment funds keep pouring money.
The catalyst arrived in February 2026: a new direct bridge connects the island with Saadiyat Island in five minutes, and the announcement of a light metro station for 2028 has boosted inquiries about Abu Dhabi as an investment destination by 340% in two months.
What is Al Reem Island and why does everyone want it
Al Reem Island is a mixed-use artificial island developed by Tamouh, Aldar and Reem Investments. The cumulative investment exceeds $30 billion and the project is designed to house 280,000 residents. It is already a consolidated community with shopping centers, international schools and hospitals.
What makes it unique is its location: adjacent to Abu Dhabi’s financial district, ten minutes from the airport and now, after the new bridge, five minutes from the Louvre Abu Dhabi. That connectivity is what investors needed to justify the price leap.
The secondary market moves two-bedroom apartments from $550,000 in Shams Abu Dhabi, with net yields of 6% to 7% annually on one-bedroom units, a figure that surpasses London, Paris or Madrid.
Why it is exploding now and not six months ago
The trigger was February 10, 2026: the opening of the northern bridge connecting Reem Hills with Saadiyat Island. In six weeks, townhouse prices in that strip rose 14%.
The data that explain the explosion:
- January–February 2026: real estate inquiries in Al Reem rose 340% compared to 2025
- Reem Hills: townhouse prices jumped from 2.8 to 3.2 million AED in six weeks
- Only 47 units unsold in Reem Hills according to Imkan Properties as of February 7, 2026
- Light metro with a station in Al Reem planned for 2028, confirmed second catalyst
- Funds from China, Singapore and South Korea buying entire towers in Shams
How this affects those who want to buy today
Faced with this scenario, the individual investor faces a market that moves faster than their decisions. Those who in November 2025 waited “to see how things evolved” are now paying between 18% and 20% more for the same units.
Those who bought off-plan in Reem Hills between 2023 and 2024 are seeing appreciation of 22% to 28% before receiving the keys. Third-quarter 2026 deliveries are already trading on the secondary market with premiums of between 600,000 and 850,000 AED over the original price.
Rentals are not easing either. Three-bedroom townhouses that in December 2025 were listed at 135,000 AED now start at 155,000 AED, a 15% increase in ten weeks, with annual increase clauses of 8% to 10%.
What this means beyond the price per square meter
Beyond the price increase, Al Reem reveals how real estate investment works in 2026: Asian institutional funds are not buying apartments, they are buying ecosystems. They control the entire chain, from rental management to maintenance, eliminating intermediaries.
The Emirates environment reinforces that logic: unrestricted freehold ownership, zero taxes on rental income or capital gains, and institutional buyers that guarantee liquidity. That does not exist in Europe.
The 15% increase in the secondary market in Shams over the past year confirms it is not a bubble but a maturation. The sustained demand from high-purchasing-power expatriates differentiates Al Reem from more speculative bets.
The doubts every investor has before entering
The questions repeat among those analyzing entering for the first time:
Q: Can foreigners buy without restrictions in Al Reem Island?
A: Yes, it is a freehold zone; any nationality can buy, sell and rent without local intermediaries.
Q: What is the real net rental yield today?
A: Between 6% and 7% annually on one-bedroom apartments, above the European average.
Q: Is there a bubble risk with such rapid increases?
A: Sustained occupancy and the 2028 infrastructure point to consolidation, not a bubble.
Q: What entry price exists today?
A: From $243,000 off-plan; finished two-bedroom units start from $550,000.
What will happen when the metro arrives in 2028
There are three milestones that will mark the price. The first has already happened: the northern bridge to Saadiyat (February 2026). The second is Reem Mall Phase II in October 2026, one minute from Reem Hills. The third is the light metro station planned for 2028.
When the RTA confirmed in January 2026 the line extension to Dubai Hills Estate, prices rose 18% in 90 days. The logic here is identical: infrastructure drives prices up before it opens, not after.
The window remains open, but it is narrowing. Those who bought between 2023 and 2024 are already winning on paper. Those who buy in 2026 enter before the metro. Those who wait until 2028 will pay with that price already factored in.
