Dubai attracts capital from global real estate giants
Dubai attracts capital from global real estate giants
According to Bloomberg, major international investment funds, including Brookfield, Goldman Sachs and Apollo, are increasing their investments in UAE real estate amid rising yields and the region's tax advantages.
International investment giants are actively increasing their presence in the real estate market in Dubai and neighboring Abu Dhabi. According to Bloomberg, Canadian company Brookfield is considering a new mixed-use project in the Dubai Hills neighborhood. This will be a continuation of the successful cooperation with Investment Corporation of Dubai, which previously built a 53-storey business center ICD Brookfield Place in DIFC.
US-based Goldman Sachs is also stepping up investment in the region: its Goldman Sachs Asset Management division has invested an additional $25 million in Sunset Hospitality Group (SHG), which plans to manage 20 hotels in different countries by 2026.
The Asian market is not lagging behind: the Chinese fund Hillhouse Investment through the structure of Rava Partners acquired the real estate of Hartland International School in Dubai for $100 million.
Meanwhile, Singaporean Mapletree Investments, controlled by the sovereign fund Temasek, announced plans to invest about $2 billion in the Gulf countries.
In Abu Dhabi, investment giant Apollo invested $500 million in Aldar Properties' hybrid bonds, bringing its total investment in the company to $1.9 billion from 2022.
The rise in foreign investment in Dubai and Abu Dhabi real estate could mean a further strengthening of the region's economy, rising residential and commercial prices, and increased employment in the construction, hospitality and financial sectors. It also indicates the confidence of major players in the stability and growth prospects of the UAE.
The activation of global investors in the UAE real estate sector confirms the region's status as one of the world's leading investment destinations. Government support, tax incentives and strong demand from tenants and tourists make the market particularly attractive in the face of global economic instability.
