Disneyland Abu Dhabi Sparks Demand For Studios, One-Bed Apartments On Yas Island

(MENAFN- Khaleej Times) Yas Island is witnessing a shift in residential demand, with buyers increasingly favouring studios and one-bedroom apartments in Abu Dhabi as global entertainment projects influence investment behaviour and housing choices.

Property executives say demand for smaller, lower entry-point units has strengthened since mid-2025. This is driven largely by the announcement of the Disneyland Abu Dhabi and expectations of rising short-term rental demand linked to the island’s growing leisure and tourism ecosystem.

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According to Ben Crompton, the change has been particularly visible on Yas Island, where investors are prioritising compact apartments over larger homes.“We are seeing more demand for these smaller, lower entry-point units when compared to larger villas and apartments,” he said.“We noticed this trend starting from the middle of 2025."

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Crompton said the shift was kick-started by the announcement of the Disney theme park in May 2025, which prompted investors to reassess what type of property best fits the island’s evolving profile.“Many investors saw this as an opportunity to purchase smaller units to be used as Airbnb-type short-term lets on the island,” he said.

He added that the pipeline of upcoming attractions has reinforced this behaviour, with buyers also factoring in future projects such as a large-scale Sphere-style venue and the planned expansion of Warner Bros. World Abu Dhabi, inspired by the Harry Potter books.“If a buyer is looking for a property for short-term letting, then size really matters,” Crompton said.“Anything larger than a two-bedroom isn’t really practical for this segment of the market, which directly competes with hotel stays.”

While investors are driving most of the demand, Crompton said smaller units are not exclusively investor-led.“Smaller units are not exclusively investor units, but that is the primary market,” he said, adding that most end users ultimately aspire to larger homes as their circumstances change.

Market conditions have also played a role, with rising prices encouraging buyers to enter the market at a lower price point. Crompton noted that many investors are opting for studios and one-bedroom apartments to gain exposure to capital appreciation while keeping initial costs manageable.

This demand pattern was reflected earlier this month when NORD Development announced the complete sell-out of NOVAYAS, its 96-unit mixed-use residential project on Yas Island, just weeks after launch. The Dh300 million development, located within walking distance of the upcoming Disney theme park, comprises studios, one-, two- and three-bedroom apartments, along with a single penthouse.

According to the developer, buyer interest was strongest among UAE-based residents familiar with Yas Island’s rental performance and long-term growth prospects, with smaller units attracting particular attention from investors planning to lease homes once the project is handed over in early 2029.

Crompton expects demand to eventually rebalance as prices adjust.“As these smaller units increase in price due to their popularity, larger units will begin to seem like a bargain in comparison and become more popular,” he said.“However, for that first investment, or for those focused on the short-term letting market, this type of unit will always be popular.”

He added that rising prices and limited availability on Yas Island are already pushing buyers to look nearby.“Raha Beach in particular can be seen as a very similar substitute to Yas Island, and we have seen massive demand there,” Crompton said, noting that Fahid Island is also attracting strong off-plan interest, albeit at higher price points.

From a planning perspective, Abu Dhabi authorities say the growth of residential projects alongside major leisure destinations reflects a broader shift toward integrated, mixed-use communities.

In comments to Khaleej Times, the Department of Municipalities and Transport said it has seen a steady rise in the number of mixed-use master plans submitted for approval, linking residential, retail, commercial, and recreational uses within a single framework. DMT said such projects support the emirate’s long-term urban strategy by improving land-use efficiency, encouraging walkability and reducing reliance on long commutes, while standalone residential buildings will continue to be developed in established districts with existing infrastructure.

Looking ahead, the department said mixed-use developments will play a central role in shaping Abu Dhabi’s urban landscape, particularly in high-density areas where vertical community hubs can deliver housing, services and amenities within a compact footprint.

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