Is Abu Dhabi the new Dubai for luxury investors?
If you are looking to enter the UAE real estate market at the 10 million AED mark or above, you might be facing a dilemma. Historically, Dubai has been the go-to for capital appreciation. But in 2025, smart money is shifting.
Welcome to Al Hudayriyat Island.
This isn’t just another waterfront project; it is a game-changer that is 58% the size of Abu Dhabi Island itself. With prices averaging AED 1,300 per sq. ft. (compared to Dubai’s AED 4,000+ for luxury waterfronts), Al Hudayriyat Island represents the single biggest value gap in the current UAE market.
In this complete guide, we will break down everything from Al Hudayriyat Island villa prices, payment plans, and floor plans to a detailed ROI calculator showing why this project is poised for massive appreciation.
What is Al Hudayriyat Island?
Al Hudayriyat Island is a massive, natural island located on the coast of Abu Dhabi, directly opposite the luxurious Al Bateen area (home to royal palaces). Unlike many man-made archipelagos, this is a natural landmass spanning over 51 million square meters.
To put its scale into perspective: Al Hudayriyat Island is almost 58% the size of mainland Abu Dhabi.
Developed by Modon Properties—now backed by a government majority stake—the island is being transformed into the “Beverly Hills of Abu Dhabi.” The master plan is unique: it utilizes man-made hills to elevate villas up to 60 meters above sea level, ensuring that every single property, whether beachfront or on the hillside, enjoys unobstructed views of the city skyline and the Arabian Gulf.
Al Hudayriyat Island Villa Prices 2025
Understanding the entry point is crucial. While Dubai’s luxury sector has seen prices skyrocket, Al Hudayriyat Island offers “Mega Mansion” sizes for a fraction of the cost.
Here is the breakdown of Al Hudayriyat Island villa prices for 2025:
| Villa Type | Bedroom Count | Built-Up Area (Sq. Ft.) | Starting Price (AED) | Price Per Sq. Ft. (Approx) |
| Al Naseem Villas | 4 – 6 Bedrooms | 5,200 – 6,700 sq. ft. | AED 9M – 14M | ~1,350 AED |
| Nawayef Homes | 3 – 5 Bedrooms | 3,700 – 5,000 sq. ft. | AED 6M – 10M | ~1,400 AED |
| Nawayef Mansions | 6 – 7 Bedrooms | 8,700 – 10,000+ sq. ft. | AED 25M – 45M | ~1,300 AED |
| Nawayef Heights (Summit) | 7 – 8 Bedrooms | 15,000 – 29,000 sq. ft. | AED 50M – 80M+ | VVIP Application Only |
Insider Note: The price per square foot here averages AED 1,300. In comparable luxury areas in Dubai (like Palm Jumeirah or Jumeirah Bay), you would be paying AED 5,000 to AED 10,000 per sq. ft. This gap is your profit margin.
Why Invest in Al Hudayriyat Island? (10 Reasons)
Based on market analysis and the current supply crisis, here is why Al Hudayriyat Island is the smartest buy in 2025:
1. The Price Gap (Undervalued Asset)
You are buying at AED 1,300 psf. If this appreciates to a modest AED 2,000 psf (still half of Dubai’s prime price), you are looking at substantial equity growth.
2. The Supply Crisis
In 2024, the UAE saw a deficit of 10,000 new homes delivered versus the demand. Al Hudayriyat Island is entering a market starved of high-quality inventory.
3. Massive Sizes (Mega Mansions)
A 6-bedroom villa here can reach 10,000 sq. ft. In Dubai, 10M AED might get you 5,000 sq. ft. Here, you get double the size for the same capital.
4. 20% Exit Strategy
The developer allows resale after paying just 20%. This allows investors to control a high-value asset with low capital deployment and flip for a profit on the equity before handover.
5. Natural Island & Blue Waters
Historical data shows that Abu Dhabi waterfront villas on natural islands hold value better during market downturns than inland properties.
6. The “Beverly Hills” Elevation Design
Modon has created three levels of land: 15m, 35m, and 60m. No villa blocks another. This tiered design is unique to Al Hudayriyat Island.
7. 2% Transfer Fee
In Dubai, you pay 4% to the DLD. In Abu Dhabi, the transfer fee is only 2%. On a 20M AED purchase, that is a saving of 400,000 AED instantly.
8. Government Backing (Safety)
ADQ (Abu Dhabi Developmental Holding Company) owns 84.5% of the project. This guarantees delivery. When the government has a majority stake, the project will be finished on time and to spec.
9. Basements & Car Collections
Unlike many Dubai villas, Hudayriyat Island villas feature massive basements capable of housing 4 to 6 cars, gyms, cinemas, and spas.
10. Payment Plan Flexibility
The plan is not aggressive. It is designed for end-users and smart investors (see details below).
Al Hudayriyat vs Dubai: Which is Better?
The age-old debate. While Dubai offers a fast-paced lifestyle, Al Hudayriyat Island offers wealth preservation and higher potential ROI due to its entry price.
| Feature | Dubai Luxury Waterfront | Al Hudayriyat Island (Abu Dhabi) |
| Entry Price / Sq. Ft. | AED 4,000 – 8,000+ | ~ AED 1,300 |
| Transfer Fee | 4% (DLD) | 2% |
| Traffic & Vibe | Heavy Traffic / Fast Paced | Light Traffic / Wellness & Calm |
| Villa Sizes (for 20M AED) | ~5,000 – 6,000 Sq. Ft. | ~10,000 Sq. Ft. |
| Ownership | Freehold | Freehold (All Nationalities) |
| Developer Backing | Various Private/Gov | 84.5% Gov Owned (ADQ) |
If you are looking for immediate hustle, choose Dubai. If you are looking for the next big appreciation wave, Al Hudayriyat Island is the clear winner.
Villa Types & Floor Plans
The architecture on Al Hudayriyat Island focuses on “California Living”—open spaces, huge kitchens (finally addressing a common complaint in UAE real estate), and indoor-outdoor flow.
Al Naseem Community
- Vibe: Californian & Art Nouveau styles.
- Layouts: 4 to 6 bedrooms.
- Key Feature: Large plots with landscaped gardens and private pools included.
Nawayef (The Hills)
This is the crown jewel of Al Hudayriyat Island.
- Nawayef Homes: Situated on the lower hills (15m high).
- Nawayef Mansions: Mid-level grandeur. Includes basements with spas and car galleries.
- Nawayef Heights (Summit): The most exclusive address in Abu Dhabi. Perched at 50-60m high. These 7-8 bedroom mansions are for the ultra-wealthy and offer 360-degree views.
Payment Plan & Fees
One of the biggest attractions of Al Hudayriyat Island investment is the payment structure. It is designed to be “light” on the investor’s cash flow.
- Down Payment: 10%
- During Construction: 30% (Typically 10% per year)
- On Completion (Handover): 60%
Why this matters: The heavy bulk (60%) is due only when you get the keys (approx. 2028/2029). This amount can be financed through a mortgage for all mainstream banks.
Hidden Saving: Remember, the property registration fee is 2%, not 4%.
ROI Calculator: The “20% Exit” Strategy
Many of our investors are asking about the Al Hudayriyat Island ROI. Let’s look at a practical calculation using the “20% Exit Strategy”.
Scenario: You buy a villa for AED 10,000,000.
- Initial Investment: You pay 20% (AED 2,000,000) + 2% fees.
- Market Growth: Let’s assume the market appreciates by 15% over 18 months (conservative given the infrastructure projects).
- New Value: The villa is now worth AED 11,500,000.
- Profit: You sell the contract. The 1.5M increase is yours.
- ROI Calculation: You made AED 1.5M profit on an invested cash capital of AED 2M.
- Return on Cash Invested: 75%
Note: This is a simplified calculation for illustration. Contact us for the full Excel breakdown.
Government Backing & Safety
Is it safe to invest here? The short answer is: Yes, arguably safer than anywhere else.
Al Hudayriyat Island is developed by Modon. Recently, ADQ (Abu Dhabi Developmental Holding Company), a sovereign wealth fund, acquired a majority stake in the project.
- ADQ Ownership: 84.5%
- Safety: Government-backed projects in Abu Dhabi have a pristine track record of delivery.
- Neighbors: You are connected by a bridge to the mainland, directly next to the Royal Palaces. This ensures the area will always be maintained to the highest standard. The robust development ecosystem in Abu Dhabi, which includes entities like Aldar, ensures that all major developments maintain the highest standards of quality and financial stability.
Amenities & Lifestyle: A Wellness Destination
Al Hudayriyat Island is not just homes; it is a sports and wellness destination. The island is already famous for its cycling tracks, but the new master plan takes it to a global level.
- Surf Abu Dhabi: The world’s largest artificial wave facility (already attracting global attention).
- Velodrome Abu Dhabi: An indoor cycling track capable of hosting international championships.
- Sports Dome (321 Sports): The largest indoor sports dome in the region.
- Urban Park: 2.25 million square meters of green parkland (the largest in the Emirate).
- Beachfront: 16km of pristine, natural beaches.
This focus on “Active Living” ensures high rental demand from families and expats in the future.
How to Buy Al Hudayriyat Island Villa
Buying property on Al Hudayriyat Island is straightforward for all nationalities (Freehold), but the best units move fast.
- Consultation: Schedule your free consultation with our Abu Dhabi specialists today to view the official master plan and access the latest exclusive inventory.
- Selection: Choose your view (City View vs. Sea View) and Elevation (Hill level).
- Booking: Pay the 10% down payment + 2% registration fee.
- VVIP Application (Summit Only): If you are looking at the 80M+ Summit villas, you must submit a profile application for developer approval.
FAQ
1. Is Al Hudayriyat Island freehold? Yes, Al Hudayriyat Island offers freehold ownership to all nationalities, meaning you own the land and the property 100% forever.
2. When is the handover date? The main phases of villas are scheduled for handover in 2028 and 2029.
3. Can I get a Golden Visa if I buy here? Yes. Any property purchase over AED 2,000,000 qualifies you, your family, and your staff for the 10-year UAE Golden Visa.
4. Is Al Hudayriyat better than Saadiyat Island? Saadiyat is the “Cultural District” (Museums). Al Hudayriyat is the “Wellness & Sports District.” Hudayriyat is currently priced significantly lower than Saadiyat, offering higher potential for appreciation.
5. Who is the developer? The developer is Modon Properties, a government-backed entity known for high-quality infrastructure and execution.
Final Verdict: Is Al Hudayriyat Island Worth It?
If you missed the boat on Palm Jumeirah in 2005, Al Hudayriyat Island is your second chance.
The combination of government safety, massive villa sizes, and a price point of AED 1,300 per sq. ft. makes this the most logical investment for anyone with a budget over 10 million dirhams. You are buying luxury real estate at a discount compared to Dubai, in a market that is supply-constrained and rich in capital.
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