Yas Island property owners can expect an increase in the value of their homes and in rents when the planned Disney theme park opens in Abu Dhabi.
The park, which was announced on Wednesday, will have a wide-ranging impact on the local economy, especially in the property sector, experts have told The National.
It is expected to lead to a surge in demand for properties on the island and nearby, with the value of villas and apartments going up in tandem.
An increase in the development of luxury homes on Yas Island is also expected.
"The surge in interest from tourists and potential residents will likely drive up demand across various property types, including apartments, villas and commercial spaces," said Nada Osman Jaouhar, Abu Dhabi branch director for property firm Betterhomes. "Consequently, we anticipate higher property values, positioning Yas Island as an even more compelling investment opportunity.
"To accommodate the growing demand, we foresee developers introducing a more diverse range of properties, potentially including more luxury apartments and landmark developments offering varied options for sale and rent. Property owners can also anticipate increased rental yields due to the heightened demand for both short-term and long-term rentals."
The announcement that Disney was coming to Yas Island was made on Wednesday by Mohamed Khalifa Al Mubarak, chairman of the Department of Culture and Tourism Abu Dhabi (DCT Abu Dhabi), and Disney chief executive Bob Iger at W Abu Dhabi - Yas Island.
The theme park will have a significant impact across a range of sectors, added Ms Jaouhar. "Existing property owners on Yas Island are well-positioned to benefit from increased property values and rental yields," she said.
"Developers with a presence on the island, such as Miral, are also likely to capitalise on the increased demand for properties and the growth in tourism. Furthermore, local businesses, including restaurants, retail outlets and entertainment venues, can expect a rise in customer footfall and revenue."
However, she warned of the risk of saturating the property market on the island.
"One potential challenge could be market saturation," she said. "If the increase in property supply is not carefully managed, it could impact property values and rental yields."
Boost for Abu Dhabi News of Disney coming to Yas Island came after the emirate of Abu Dhabi was experiencing a significant boost in the value of its properties. Earlier this year, The National reported how Abu Dhabi’s residential sale prices and rents rose in 2024 against a back drop of higher demand and a supply shortage in the emirate.
Home sale prices increased by 11 per cent annually last year, while rents rose 20 per cent, a report by commercial real estate firm Cushman & Wakefield Core found. The same report said Yas Island had made gains of 14 per cent during that period.
"From an estate agent's point of view, the eyes of the world are going to be more on the Emirates, particularly Abu Dhabi and especially Yas Island [with Disney opening a theme park there]," said Mario Volpi, head of brokerage at Novvi Properties.
"Anybody that's already bought there will of course see an uptick [in value]. Disney is a massive, massive brand and it's an affirmation that the Emirates have made enough noise on the world stage to be a destination of choice."
The level of employment the theme park is likely to create will have a major impact across the board, not least in the real estate sector, said another expert. Disney's theme parks each tend to employ several thousand people.
"This is going to bring new jobs to the island and [this many] new jobs obviously create additional demand for residential new housing," said Matthew Green, head of research at real estate company CBRE Mena. "It will have a positive knock-on impact on various parts of the real estate market."
Disney's announcement that it is opening a theme park in Abu Dhabi comes at a time when demand for property at Yas Island is already significant.
Property developer Aldar recorded sales of more than Dh1.4 billion ($381 million) for residential units at a project on the island last September. Prices of units at Yas Riva, which comprises 151 canal-front villas, started from Dh8.3 million and the project sold out within 24 hours of its launch.
It stands to reason, Mr Green said, that Disney will want its staff members living near the theme park, which would mean a substantial increase in those looking to live on Yas Island or nearby.
"Operators tend to want to have their staff within relative proximity. You don't have to be immediately on site, but they generally still want you to be comparatively close," he said.