UAE master developers partner for 9,000 Dubai homes

Dubai Holding Resource Library

• Dubai Holding and Abu Dhabi’s Aldar join forces in milestone venture
• Aldar is exploring other expansion and investment opportunities 

UAE mast developers Aldar Properties and Dubai Holding have formed a partnership to develop 9,000 residential units across prime locations in Dubai, with the first phase of launches planned to start this year.

The joint venture will oversee the development of new communities in three locations along the E311 and E611 corridors – in the suburban heart of Dubai and in close proximity to several notable residential communities.

The 9,000 units will consist of villas, townhouses and apartments, served by retail and community facilities. 

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Dubai Holding, the private investment vehicle of Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum, will support Abu Dhabi’s Aldar as it takes overall responsibility for the full development cycle including concept design, sales, delivery and management of the developments.

Aldar, which is listed on the Abu Dhabi Securities Exchange, has developed desirable communities across the emirati capital in destinations including Yas Island, Saadiyat Island, Al Raha and Reem Island.

“Our entry to Dubai is a milestone for Aldar, and we’re excited about our long term growth potential alongside Dubai Holding, a prominent and strategic partner,” said Talal Al Dhiyebi, group CEO of Aldar Properties.

“We will continue to explore further expansion and investment opportunities in Dubai, reflecting our belief in the market’s maturing real estate fundamentals.

“We’re confident in its status as a growing and lucrative market, where long-term demand from end users and investors is supported by a diversified economy, proactive government policy and population growth.”

Aldar

Amit Kaushal, group CEO of Dubai Holding, said: “With the favourable economic environment in Dubai and the upward trend in its real estate sector, we are well positioned to attract international investors through such a strategic partnership.” 

The developments will cover an area of 3.55 million sq m and represent some of the last remaining undeveloped plots of land in the E311 and E611 corridors. 

Faisal Durrani, partner and head of Middle East research at property consultancy Knight Frank, expects the proposed location for the new developments to be popular with buyers and investors, given the established community infrastructure and proven demand for housing there.

“It’s positive news when it comes to addressing the supply-demand imbalance in the city,” Durrani said.

“The villa pipeline accounts for 22 percent of all new supply expected in Dubai until the end of 2026.

“Aldar’s entry into the Dubai market with such a substantive development pipeline is reflective of the appeal of Dubai’s buoyant residential sector to investors and developers.”

Richard Waind, group managing director at real estate firm Betterhomes, said the Dubai villa and townhouse market was seeing strong growth, and this is an area Aldar “has a very strong track record in”.

“It is interesting to see Aldar, Abu Dhabi’s national developer, making this move into Dubai at this time. It really is another indication of the long-term positive perception of the Dubai real estate market,” he said.

Nick Maclean, managing director of property consultancy CBRE Mena, said: “Dubai Holding and Aldar have, in their own emirates, driven the development of the built environment and provided the accommodation – commercial and residential – that has created strong and complementary economies. 

“Their combined skills and scale will bring ideas and economies of scale.” 

Aldar is Abu Dhabi’s biggest listed developer. In early trading on the ADX today, its stock rose 1.83 percent to AED4.4, with the traded value passing AED27 million inside the first 30 minutes of the market opening.

The company’s Dubai debut forms part of its broader expansion into new markets following its recent acquisitions of Al Fahid Island in Abu Dhabi and a new waterfront development in Ras Al Khaimah.

“Ras Al Khaimah is fast establishing itself as a holiday destination all on its own,” said Barnaby Crompton, super prime property broker and partner at Crompton Saltini Real Estate.

“Aldar has eyes on expansion and it would make sense if it was also looking at some parts of Europe in the near future. 

“Some European countries are experiencing a level of turmoil that is likely only going to be exacerbated as the world markets slow. There will be rich pickings for those in a position to identify them and move quickly.”