How much do you really know about Hudayriyat Island, or do you only recognize the name because it appears in some comparison of Abu Dhabi’s islands? Most investors following the Gulf market have been hearing the name for months without fully understanding why this island, and not another, is drawing the attention of the most patient and strategic capital.
The numbers are clear: projected rental yields of between 7% and 8% annually, with appreciation during the construction phase estimated by analysts at between 15% and 20%. And most importantly, the project is still in the early stages of residential delivery, which means the pre‑mainstream entry window hasn’t completely closed yet.
Hudayriyat Island: the project Abu Dhabi had been preparing for decades
Hudayriyat Island spans 3,000 hectares of planned development, just 25 kilometers from Abu Dhabi’s city center and 30 minutes from the international airport. The master plan, officially revealed in June 2023, adds 53.5 km of new coastline to the Emirati capital’s landscape, including 16 km of beaches, creating a product with no direct competition in the Gulf.
The project is led by Modon Properties, a government‑backed developer, which eliminates the abandonment risk that has hindered other regional developments. The operational infrastructure already exists: an indoor velodrome, permanent cycling circuits, over 200 km of bike lanes, and 600‑meter public beaches that have been operating since 2025, even before the main residential phases are completed.
Hudayriyat Island’s urban plan in detail
The development’s layout divides the island into interconnected themed areas: residential communities with seafront villas, a sports complex featuring the Velodrome Abu Dhabi and the artificial wave facility Surf Abu Dhabi, eco‑sustainable parks, and a future waterfront promenade with premium dining and retail. It is not a single‑purpose development but a self‑sufficient ecosystem designed to function as a destination in itself.
The focus on high‑performance sports is one of its strongest strategic differentiators. The island already hosts international cycling and obstacle‑race events, creating a steady flow of visitors even during construction — a data point institutional funds particularly value when modeling future rental demand.
Current prices in Hudayriyat Island: the window still open
Current residential offerings include three‑bedroom villas starting at 6 million AED, with sizes ranging from 325 m² to over 740 m². The Bashayer project, slated for delivery in 2028, starts at approximately 3.45 million euros, with a payment plan of 10% upfront, 40% during construction, and 50% upon handover. Nawayef East and West, the most advanced projects, already show documented appreciation of 21.8% since their launch prices.
Compared with consolidated markets in the region, Hudayriyat Island is still trading at a structural discount. Emirates Hills in Dubai has reached prices of 85 million dollars per mansion, pushing out mid‑high‑tier buyers who are now redirecting their capital to Abu Dhabi in search of similar assets at pre‑consolidation prices.
Why institutional funds are looking at Hudayriyat Island in 2026
The institutional capital movement follows a clear logic: Abu Dhabi, as of January 2026, offers 10‑year residence visas for investments over 2 million dirhams, with full tax exemption on income and capital gains. The legal framework protects foreign investment with freehold ownership across all the emirate’s islands, removing the restrictions that still exist in other Gulf jurisdictions.
The second factor is programmed scarcity. Hudayriyat Island does not allow speculative high‑density developments because its master plan sets building restrictions to preserve its residential and sports character. This means controlled supply in a market with growing structural demand — exactly the profile institutional capital seeks when entering emerging markets before they go mainstream.
| Indicator | Hudayriyat Island | Yas Island | Saadiyat Island |
|---|---|---|---|
| Projected rental yield | 7–8% yearly | 5.2–6.3% yearly | 5–7% yearly |
| Annual appreciation (pre‑handover) | 15–20% | 10–13% | 10–13% |
| Recommended investment horizon | 3–5 years | 1–3 years | 1–3 years |
| Risk level | Moderate‑High | Low‑Moderate | Low |
| 3‑bedroom villa price from | 6 million AED | 4.5 million AED | 7 million AED |
| Golden Visa eligibility | ✅ From 2M AED | ✅ From 2M AED | ✅ From 2M AED |
Hudayriyat Island in 2026: forecast and expert advice
The market consensus for Hudayriyat Island points to a 20–30% price appreciation from current levels once the main residential delivery phases are completed, expected between 2027 and 2028. Projects targeting 5 million annual visitors by the end of 2026 will generate rental demand pressure not yet priced into current launch values.
The practical advice is the same that always makes the difference in pre‑mainstream markets: the entry window with a structural discount relative to the consolidation price doesn’t wait until all catalysts are visible. Those entering Hudayriyat Island today are buying into the project; those entering in two years will be paying for the reputation others already built.
