Disneyland Abu Dhabi: Rents to increase; hotel rates to rise by up to 25%

Khaleej Times

20-05-2025

Hotel rates in Abu Dhabi and other emirates are expected to rise by as much as 25% following the opening of Disneyland in the UAE capital, with rents and property prices also anticipated to experience significant growth.
Industry executives say that Disneyland Abu Dhabi will especially have a strong impact on the leasing business and hotel rates as it will attract tourists and resident visitors throughout the year, having a ripple effect across the UAE.
Disneyland Abu Dhabi will be the region's first-ever Disney theme park and the brand's seventh resort worldwide. The park will be located on Yas Island Waterfront, joining Ferrari World, Warner Bros. World, and SeaWorld Abu Dhabi and further solidifying Yas Island's status as a global entertainment hub.
Ayman Ashor, Cluster General Manager, Al Bandar Rotana and Arjaan by Rotana, said that with the anticipated surge in tourism, hotel rates in Abu Dhabi are expected to experience a notable increase once Disneyland becomes operational.
'Industry experts estimate that hotel rates may rise by approximately 15 per cent to 25 per cent, driven by the heightened demand for accommodations from both local and international visitors,' he said.
Ripple effect
Ashor noted that Disneyland Abu Dhabi will 'significantly increase footfall to the emirate' and 'visitors will extend their stay,' benefitting hospitality, retail, and entertainment sectors.
Ashor added that tourists are likely to combine their visits to both Dubai and Abu Dhabi, thus enhancing the overall attractiveness of the UAE as a diverse holiday spot.
Iftikhar Hamdani, area general manager of Bahi Ajman Palace and Coral Beach Resort Sharjah Northern Emirates, said 'Disney Effect' will have 'ripple effects extending far beyond Yas Island.'
'Based on current market trends and the 'Disney Effect' observed globally, we anticipate a 10–15 per cent increase in hotel rates across Abu Dhabi and the Northern Emirates, once the park becomes operational, particularly in the initial 3–5 years post-opening,' he told Khaleej Times.
'Disney's global appeal will amplify demand, attracting families from the GCC, South Asia, Europe, and beyond. Family tourism, which prioritises multi-day stays and premium accommodations, will drive up occupancy while encouraging hotels to optimise room mixes — such as suites and interconnected rooms — to cater to this demographic. This shift will elevate Average Daily Rates (ADR) as guests prioritise comfort and convenience over cost.'
Abu Dhabi's Tourism Strategy 2030 aims to nearly double annual visitors to 39 million, with Disneyland serving as a cornerstone. The UAE's centralised location —within a four-hour flight from one-third of the world's population— positions it to capture regional travellers who previously bypassed the UAE for distant Disney destinations.
'This influx will create sustained demand, benefiting not only Yas Island's hotels but also properties in the Northern Emirates as tourists explore the broader UAE,' added Hamdani.
'We are preparing for this surge by enhancing family-centric amenities and aligning pricing strategies with projected demand,' he said.
Impact on short-term rentals, property
Nada Jaouhar, Abu Dhabi Branch Director at Betterhomes, expected that property prices, rents and short-term rentals for Airbnb will also see growth.
'We expect the prices to soar –on Yas Island, especially for leasing– once we are close to the handover of Disneyland. If anyone thought Yas Island has a lot of hotels and airbnbs, that is not the case anymore as Disneyland is an all-year-round event and we will need more airbnbs to cope with the influx of year-round tourists,' she added.
'Abu Dhabi's property market has been on an upward trajectory, and the announcement of Disneyland's arrival is expected to serve as a major accelerator,' said Betterhomes, a UAE-based property management and brokerage firm.
In April, the emirate recorded a 15.7 per cent increase in transactions over March, reaching Dh2.9 billion in sales. Off-plan sales dominated, and represented over 70 per cent of the total, indicating significant investor interest in new and upcoming developments. This trend underscores growing investor appetite for new developments and future-forward communities.
'A game-changer'
Hotspots such as Yas Island, Saadiyat Island, and Al Jubail Island have already been commanding premium prices, with villas on Al Jubail selling for up to Dh10 million and leases reaching Dh400,000 annually.
'Disneyland will be a game-changer for Abu Dhabi's property landscape. We predict increased property demand on Yas Island and nearby areas, with buyers seeking high-quality, future-oriented homes, given its closeness to a major future attraction," said Jaouhar.
It is estimated that the Disneyland project in the UAE capital will take between five and eight years to complete.
Rohit Bachani, co-founder of Merlin Real Estate, also expects 'a significant ripple effect on nearby freehold areas.'
'The most immediate beneficiaries will likely be Yas Island itself, Saadiyat Island, Al Reem Island, Al Raha Beach, and Al Shamkha — which are already gaining traction among investors and end-users alike. These locations combine proximity to the new attraction with lifestyle appeal, beach access, and master-planned infrastructure,' said Bachani.
He added that this new project will 'catalyse long-term capital appreciation across these strategic zones. Smart investors would do well to start positioning early.'