Skip to content Skip to Search
Skip navigation

Dubai luxury real estate has stabilised, says Deyaar CEO

  • Interview with Saeed Al Qatami
  • Demand rising for mid-range property
  • Company to launch in Abu Dhabi

Demand for mid-segment and affordable properties will increase in the coming months as luxury real estate prices start to stabilise, according to Saeed Al Qatami, CEO of the Dubai master developer Deyaar Development. 

“This is a segment that will see more demand and an increase in prices. Luxury has stabilised,” Al Qatami said.

Last month Deyaar launched a AED750 million ($204 million) residential project, Eleve, in Downtown Jebel Ali in Dubai, scheduled to be completed in 2027.

The company will also be announcing the launch of another affordable low-rise residential project in the second half of this year.

Later this year Deyaar will launch its first project in Abu Dhabi on Reem Island, joining developers such as Aldar that are expanding beyond their core markets.

Deyaar’s net profit more than trebled to AED440 million in 2023, thanks to the launch of new projects and a hot real estate market. The company, which is listed on Dubai Financial Market, announced the approval of a dividend for the first time this week. 

“We have to ensure that we launch two to three billion dirham worth of projects every year. That’s why we’re considering launching three to four projects every year,” Al Qatami said. 

While a crisis could be looming for commercial real estate in the West, the sector is doing particularly well in the UAE.

The market-wide average occupancy rate in institutional-grade buildings tracked by the real estate consultancy company CBRE reached 91 percent in Q3 2023 and Prime, Grade A, and Grade B rents grew by 0.5 percent, 3.4 percent, and 4.8 percent respectively in Q4 2023.

“In Dubai, an office space on Sheikh Zayed Road would have been leased for AED100 per square foot a few years back. Today, you can’t get it for AED300 [per square foot],” Al Qatami said.

“We’ve seen phenomenal growth into the commercial space and this is something that developers need to tap into. Maybe, we could have a project within the next 12 months. We need to find the right location.”

Latest articles

The funding of Midas is among the 'biggest ever' Series A fund raise by a Turkish fintech

Turkish fintech Midas raises $45m for new products

Turkish fintech startup Midas has raised $45 million in equity funding to expand its services and launch new products. The new products include cryptocurrency trading, mutual funds and savings accounts. The funding is among the “biggest ever” Series A fund raise by a Turkish fintech and comes less than three years after Midas was launched.  […]

Plenary founder and director Paul Oppenheim, Plenary CEO David Lamming and Ahmed Ali AlShamsi, director of energy and utilities at ADQ

ADQ buys stake in Australian investment company

The UAE’s investment fund ADQ has acquired a 49 percent stake in Australian infrastructure investor Plenary Group as part of its expansion drive. The Abu Dhabi state-backed company will acquire all shares currently owned by Canadian pension fund Caisse de dépôt et placement du Québec, which will continue to invest in a range of Plenary’s […]

Over 400 global food brands are taking part in the SaudiFood Manufacturing show in Riyadh this month

Saudi Arabia’s food factory count rises to 1,300

The total number of food factories operated by the Saudi Authority for Industrial Cities and Technology Zones (Modon) has reached 1,300, across 36 cities. The increase signifies the growing capacity of the domestic food industry and its localisation efforts, the state-run Saudi Press Agency reported. Food industry companies have recorded a growth rate of more […]

Garden, Nature, Outdoors

UAE commits $50m to development fund

The UAE has committed $50 million to the second phase of the Lives and Livelihoods Fund 2.0 (LLF 2.0), a multi-donor initiative targeting sustainable economic development in the Islamic Development Bank’s (ISDB) 57 member countries. The funding will be deployed by LLF 2.0 to support critical projects in health and infectious diseases, agriculture, and social infrastructure in low […]