Aldar Properties, one of the UAE’s leading real estate developers, has entered the Dubai real estate market through a joint venture agreement with Dubai Holding. The agreement will see the two companies jointly develop 9,000 residential units in three communities across 38.2 million sq. ft. in the suburban area of the Emirate, close to notable residential communities and E311 and E611.
Aldar will assume the full scope of the development process, covering project conception, marketing, distribution, and supervision. They will be in charge of all the projects’ stages, ensuring they are realized according to plan. Their duties will include gathering necessary materials, working with vendors, monitoring progress and performance, and conducting regular reviews of the project’s status. Recently, another luxury project was in news, which is Views by Danube Properties that is defining luxury in a new way.
Dubai’s strong growth – Impetus behind the JV
To put this in perspective, the Dubai property market experienced a record-breaking performance in 2022 in terms of sales volume and value. Looking at the end of previous year, we can state that December 2022 concluded on a positive note for Dubai real estate sector. A report by one of the region’s leading portals, and apps for interactive data in real estate, also revealed that the emirate achieved 76% growth in sales compared to 2021, with a total value of AED 265 billion. The year experienced remarkable success with off-plan property sales that grew by 100%, registering more than 52,000 transactions worth over AED 124 billion. These numbers also represent an increase in value by 144% compared to the off-plan property sales in 2021.
2022 closed on a positive note
In terms of the growth in transactions and value of ready properties, sales increased by 30% to reach 45,200 units amounting to dealings worth AED 140 billion, along with an increase in value by 41%. The Dubai real estate sector continued this impetus well into August 2022, attracting a record AED 24.3 billion investment through 9,720 sales deals. The month of November 2022 saw a record 10,941 sales transactions estimated to be about AED 30.5 billion.
In terms of value, off-plan properties witnessed a record-breaking performance, transacting more than AED 12.7 billion for the first time in a decade, with an increase of 87.1% compared to AED 6.8 billion in November 2021. It is also true that Dubai prime areas remained in higher demand with property prices were up by 90%.
More about Aldar’s new project
The development of new communities, set to begin in 2023, is an ambitious project that seeks to provide 19.3 million sq. ft. of space in the form of villas, townhouses, and apartments. Along with retail and community facilities, these new dwellings will be designed with a focus on liveability, sustainability, quality design, and creating a strong sense of community culture. These new homes will provide a great level of comfort and convenience while also promoting a stronger sense of community and sustainability.
Dubai Holding, headed by the ambitious CEO Amit Kaushal, has said that the joint venture demonstrates the company’s ability to be the go-to investor for regional and institutional partners looking for a secure and prosperous investment opportunity. With the Emirate’s economic landscape looking ever more favourable and its real estate sector showing steady growth, Dubai Holding is taking advantage of these conditions to bring in international investors and create new products in the market. This groundbreaking partnership is sure to provide strong returns and support the realization of Dubai’s and the UAE’s economic objectives.
Do you know it’s not Aldar’s first attempt?
Aldar has previously made an attempt to enter the Dubai property market through a partnership with Emaar, but this was later put on hold. Al Dhiyebi stated that they would continue to look for expansion and investment opportunities in Dubai due to their confidence in the market’s growth and the support from a diversified economy, proactive government policy, and population growth. The upcoming communities will offer a fresh and unique opportunity for Aldar to target a wider customer base. Read here, if you need more key reasons to start investing in Dubai real estate market.
Community-themed projects in Dubai have been popular with buyers, with successful launches from various companies such as Emaar, Damac, Majid Al Futtaim, Sobha, and Azizi. Kaushal, the Group CEO of Dubai Holding, mentioned that with the favorable economic environment and upward trend in Dubai’s real estate sector, they are well-positioned to attract international investors through strategic partnerships like the joint venture with Aldar. Dubai Holding aims to continue positioning the Emirate as the leading destination for investments from around the world.
What the world has to say about Dubai real estate?
Every other person suggests investing in Dubai real estate, seeing its growth potential and track-record. You should also know what others comment about Dubai real estate market.
World Economic Forum statements
The World Economic Forum in 2023 highlighted the success of the United Arab Emirates (UAE) in design thinking and governance. The Gulf region was also identified as a bright spot for the post-pandemic global economy, despite the cost-of-living crisis and the war in Ukraine. The IMF also raised global growth forecasts for 2023, indicating that the region will likely remain an important hub for the global economy in the coming years.
Besides that, the government of Dubai has launched its own initiatives to ensure that Dubai remains robust in all aspects, whether they are investments in properties in Dubai or industry and trade. The recent AED 32 trillion economic plan to make the Emirate one of the world’s main financial and trading hubs is another brilliant move to keep investor and buyer confidence strong in the Emirate.
In addition to the measures aimed at boosting the economy, Dubai has also made legal and policy changes to enhance the ease of doing business and maintain its attraction to foreign investors and talent. The Emirate began the year by lifting a 30% tax on alcohol. Over the years, the UAE has made several changes, such as lifting the ban on cohabitation by unmarried couples, adopting a five-day work week, and introducing new visas that allow foreigners to work, live, and study without the need for sponsorship.
Aldar Properties is an Abu Dhabi-based real estate developer. It is considered one of the leading real estate companies in the UAE, known for its diverse portfolio of high-quality residential and commercial developments. The company has a strong presence in Abu Dhabi and has recently expanded into other markets, including Dubai. Aldar Properties has a history of delivering innovative and sustainable real estate projects and is known for its commitment to providing customers with exceptional living experiences.
The Dubai real estate sector’s exceptional growth has been a magnet for property development companies and investors from around the world. Aldar is not the only Abu Dhabi-based developer to have entered the market to construct and promote properties for sale in Dubai. Last year, Abu Dhabi-based real estate developer Eagle Hills entered the Dubai property market with the launch of its flagship project, Marasi Business Bay.
The project is set to become one of the world’s largest waterfront developments, featuring 16 residential and commercial buildings and a marina spread over 13.5 million square feet. The developer has also announced plans to launch a new property development in Dubai’s Jumeirah Village Circle in the near future.