Disneyland Abu Dhabi expected to triple housing demand, says expert

Disneyland Abu Dhabi is already creating a buzz in the property market, driving up demand and prices across the capital, according to real estate experts.

Since the May 7 announcement, some properties across Abu Dhabi have seen overnight increases of up to 15 per cent.

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Three-bedroom apartments on Reem Island, for example, rose from Dh1.8 million to Dh2.5 million, said Khaled Al Najjar, property sales manager at Oia Properties.

Officials have not formally announced the site yet.

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Pricing ripple effect

Al Najjar said some developers delayed launches until after the announcement to capitalise on the surge in value. High-profile neighbouring attractions, including the Sphere entertainment venue and King’s College School Wimbledon on Fahid Island, are also pushing up demand. Many projects “sold out immediately after the Disney announcement,” he said.

In many cases, resale prices climbed 10 to 15 per cent. With Disneyland Abu Dhabi expected to attract three to eight million visitors annually, Al Najjar estimated that 30,000 housing units will be needed by 2030, nearly triple the 11,000 scheduled for delivery this year.

This will be the region’s first-ever Disney theme park and the seventh Disney resort worldwide. Miral will oversee development and operations, while Disney will lead creative design and attraction development. The project will combine Disney stories and characters with elements of Emirati and Arab cultures.

Market trends and investor focus

Ben Crompton, Managing Partner at Crompton Partners, said there is not yet a premium for units with a Disney view because “people are still not sure of the exact location or its dimensions,” although sales spiked after the announcement.

He noted that short-term rentals, already popular in developments like Water’s Edge and Raha Beach, are expected to expand closer to the park’s opening. The Department of Culture & Tourism regulates short-term lets, requiring property owners to obtain a licence, a process Crompton described as “relatively straightforward” with the help of professional operators.

• Abu Dhabi

Haneen Dajani

haneen@khaleejtimes.com

Haneen Dajani is special correspondent in Abu Dhabi with over 15 years of reporting experience. She’s also a passionate athlete, full Ironman finisher, and mountaineer who loves to embark on unusual challenges.