Damac Properties Dubai: Dubai investments are bullish in the UAE real estate market as it continues to expand globally

Dubai Investments is bullish on the UAE property market and is continuing to expand internationally to bolster its portfolio this year, its vice president and managing director said.

The Dubai-listed company, in which the emirate’s sovereign wealth fund Investment Corporation of Dubai has an 11.54% stake, has completed two major projects in the United Arab Emirates – a 3 billion dirham (816 million) in Mirdif and a 500 million dirham development in Fujairah.

It plans to start a Dh1bn project on Al Marjan Island in Ras Al Khaimah in the second quarter of this year, Khalid bin Kalban said. The National.

“We are discussing with various financial institutions for financing the project,” Bin Kalban said of the Ras Al Khaimah development.

“There will be a hotel with 300 rooms, 170 villas and 400 apartments and a few shops. We hope to complete the project in 30 months maximum.”

The UAE real estate market is recovering from the start of the Covid-19 pandemic thanks to new government initiatives such as residence permits for retirees and remote workers, in addition to the extension of the golden visa by 10 years.

Measures to contain the spread of the virus, such as vaccination, have also helped the real estate market recover. Many foreigners have invested in real estate with the aim of settling in the Emirates.

“So far the real estate market is good, values ​​have improved, rents have stabilized and supply has been absorbed,” Bin Kalban said. “Whatever action the government and companies have taken to slow down projects has helped protect and stabilize the market.”

Residential property prices in Dubai rose 21% in the first 10 months of 2021 to reach Dh1,235 per square foot in October, from Dh1,021 per square foot in January, according to a recent study by Knight Frank. .

Ultra-high net worth individuals, among others, are buying up properties in droves to boost the market. In Abu Dhabi, prices rose 2.2% on the year to August, according to a separate CBRE report.

The company, which has interests in other sectors including health care and education, sold 1 billion dirhams worth of goods last year and expects demand to continue this year.

“We’re almost out of inventory [and] that’s why we are building in Ras Al Khaimah,” Mr. Bin Kalban said.

Dubai Investments also plans to expand outside the United Arab Emirates. He has signed an agreement to build a similar project at Dubai Investments Park in the South African nation of Angola. With a total area of ​​20 square kilometers, it will have land for residential use, logistics and offices, Bin Kalban said.

Dubai Investments Park is a mixed-use industrial, commercial and residential free zone occupying 2,300 hectares near Al Maktoum International Airport.

The site hosts thousands of companies serving a variety of industries, including oil and gas, construction, and pharmaceuticals.

Mr Bin Kalban said the company was “positive” about profits and revenue in 2022 after a strong financial performance last year amid the UAE’s economic recovery.

“Whatever the measures taken by the government last year or the year before, it has contributed a lot to improving the overall economic situation and is reflected in the results of most companies, including banks,” said- he declared.

Dubai Investments reported a 78% increase in net profit in 2021 to Dh619.4 million, with revenue during the period increasing by 28% to Dh3.41 billion.

The new corporate tax introduced by the UAE government in 2023 will bring “stability to government revenue and grow the economy in a faster way”, Bin Kalban said.

Penny D. Jackson