According to a recent report by multinational developer MERED, waterfront real estate in the UAE is in unparalleled demand, with Abu Dhabi's seaside districts outperforming the overall market by a significant margin. 

Within the same period, the prime waterfront areas of Abu Dhabi reported a 69% increase in value between Q4 2021 and Q3 2025, more than tripling the 22% increase seen within non-waterfront areas. Overall, off-plan projects throughout the capital recorded a weighted average price increase of 47%, bolstered by a 429% jump in sales volume.

"Al Reem Island is a case in point," said Artemiy Marinin, Project Director at MERED. "Waterfront projects on the island have gained 57% in price since the end of 2021, significantly outperforming the 20% rise in non-waterfront locations. This performance reflects not only the current market demand but also displays significant potential for future growth compared to other established luxury destinations."

Waterfront projects on Yas Island set the upper benchmark, registering an 81% price increase for the same period, while defining the peak of Abu Dhabi's premium residential market. As analysts explain, Al Reem is centrally located and is still undergoing transformation, so it still carries room for appreciation as the island fills out with cultural, commercial, and residential anchors.

Major design-led developments emphasizing exclusivity and architecture have strengthened this momentum. The most recent project of MERED, Riviera Residences, occupies two prime plots totaling more than 23,400 square meters within the Abu Dhabi Global Market district.

The property, which was created by the Pritzker Prize-winning architects Herzog & de Meuron, has more than 400 apartments and 11 unique villas, including sky villas, ocean villas, and a penthouse that was inspired by the capital's history of pearl digging. The demand for waterfront homes with pedigree design and solid lifestyle credentials was demonstrated by the fact that every pre-launch property sold out right away. 

It is a similar case in Dubai, where the real estate on the waterfront remains the most competitive segment of the market, with a constrained supply. Some districts have posted annual rises of up to 24% in prices, with Jumeirah Bay Island posting an average of Dh4,122 per square foot in early 2025.

The villas with a waterside address achieved gains of over 20% year-on-year, and homes with direct access to the water can now command premiums of 20-40%, while sea-facing apartments typically achieve a 15-25% uplift compared to similar units without views.

Forecasts indicate that premium waterfront values can appreciate by an additional 15 percent in 2027, enabled by an irreplaceability factor described by many: no new supply can replicate the location, amenity mix, or prestige of the neighborhoods.

Marinin said "The superior performance of waterfront properties underlines a simple principle-limited supply that meets consistent demand,". "Waterfront land is finite, and a premium lifestyle means these properties will continue to be highly sought after. This scarcity and strong buyer interest continue to steadily translate into secure, profitable investments with superior rental yield, capital appreciation, and liquidity."

Data from Abu Dhabi and Dubai indicate a maturing but still accelerating segment, where design investment, branded developments, lifestyle infrastructure, and global visibility increasingly determine value. For investors, the UAE's waterfront real estate continues to be one of the most dependable long-term growth plays in the region.