(Bloomberg) – The real estate market in Dubai has begun – the real estate values have increased by 70 % in the past four years – in the temptation of a large number of new investors in Wall Street.
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Brussfield Corp weighs plans to develop a multi -use community in the Dubai Hills neighborhood, which will be the first residential real estate bet in the region, according to the people familiar with the matter. Temasek Holdings in Singapore. Some people said that scouting is currently for investments in the city.
It will join the likes of Goldman Sachs Group Inc. The Asian -based Hillhouseouse Investment Director, who recently plowed millions in the emirate’s property.
It has all drawn through the increase in activity that occurs throughout Dubai. In the past 24 months, the city has recorded eight sales for offices buildings – more than the previous ten years combined. The same applies to hotel transactions, as 15 transactions have occurred during the past thirty months, according to Knight Frank.
“The past two years were more preoccupied for us than the entire previous decade on the side of the capital market,” said Andrew Loew, head of the capital and commercial agency at Knight Frank. “The demand grows from buyers looking for better returns and less taxes.”
It is far from the years that followed the financial crisis, when the image of hundreds of luxury cars was left abandoned at Dubai International Airport by expatriates who were unable to keep pace with their debts were engraved in the minds of institutional investors around the world. It was a brutal reminder of the nature of the boom and the step of the city market in the city, where foreigners still dominate them to this day.
New enthusiasm
Dubai began to turn in the wake of the epidemic when the city was reopened earlier than others, as it drew dozens of wealthy tourists and investors into its sunny beaches. The government’s introduction to the most liberal visa policies poured more fuel on this gathering.
After Russia’s invasion of Ukraine, many wealthy people in the country transferred some of their money to the city in an attempt to protect their assets from sanctions and the most strict capital controls at home. Soon, many of the owners of the cryptocurrencies and the hedge fund managers who were seduced to Dubai were joined by the emirate’s low tax system and a time area that allows workers to trade across Asian, European and American watches.
Combating, the movements sparked an unprecedented increase in residential and commercial real estate values. In the first quarter of this year, before the trade war of US president Donald Trump weighed the morale of investors and contributed to the drop in oil prices, Dubai recorded home sales of more than $ 10 million.
Brussfield began strengthening its invasion in the real estate market in Dubai in 2020.
At that time, the Asset Manager – along with her partner Investment Corp. In Dubai – ICD Brookfield Place, the largest office tower in Dubai. Soon the building was filled and now ordered the highest commercial rents in the city; Last year, Brussfield managed to empty a 49 % stake in the tower in a real estate deal at $ 1.5 billion.
Now, the Canadian company weighs plans to build residential towers alongside offices and retail spaces that will provide it for rent in Dubai Hills, a known area in its luxurious villas.
Then there is MAPLETREE Investments PTE, real estate director owned by the sovereign wealth fund in Singapore. Other people said knowledge of the issue that the company was in the hope of publishing about two billion dollars in the Gulf region after the opening of an office in Abu Dhabi last year.
Inside Blackstone Inc. Executive officials also held preliminary discussions throughout the Middle East on commercial real estate investments.
They will be accompanied by a large group of supporters of the big names who invested all over the city.
In April, Goldman’s asset management arm plowed $ 25 million in the hospitality group in the United Arab Emirates to allow the hotel institution to expand its resorts portfolio in the region. This month, Hillhouse took its first investment in the region when its unit Rava Partners acquired real estate at Hartland International School in Dubai, in a deal estimated at the property of $ 100 million.
In the nearby Abu Dhabi, Aldar Properties-the largest developer listed in the city-500 million dollars from Apollo Global Management Inc. In January in one of the largest private places in the region. The deal means that APOLLO has led investments that total $ 1.9 billion in Aldar via four transactions since 2022.
Jamsheed Issani, a partner in Apollo, said in a statement announcing the news that the recent investment confirms “Apollo’s commitment” as a great capital provider for the broader ecosystem in Abu Dhabi.
Representatives of Mapletree, Brookfield and Blackstone refused to comment.
Lack of display
One of the main problems of external asset managers, insurance companies and pension funds that look forward to investing in real estate in the city remains: finding assets that are generated in revenues that they can already buy.
To this day, many of the city’s buildings are owned by the wealthy Emirati families or government entities, which are keen to adhere to the profitable assets. This forces many money and investors to think about investing in new developments.
“The institutional funds want to be here and began to reach, but the challenge is to sell the stocks,” said Knight Frank Loew. He said: “Most of the offices have been built by the government and the semi -government entities,” adding that there is “the absence of first -class buildings to gain, which means that there is a lack of the depth of the market, which requires the institution to make it deserve while entering the market.”
Get traction
So far, this risk has not hindered Martin Linder, which was collected by Global Partners Limited for more than $ 350 million for his second fund after obtaining investments from American family offices, the German retirement fund and a prominent Singaporean Foundation.
For Linder, it is a flagrant reflection of when he was raising the first global partner box, when he spent six months in Boston in an attempt to persuade countless investors of Dubai’s capabilities. He said that at that time, few were affected by the market, they only knew about it.
Ultimately, Linder collected more than $ 200 million, which revolves around and used to create two residential buildings on the water channel in Dubai. After that, the first fund began pushing investors over time, talking with supporters became easier.
“We get cold calls from high -level family offices from the United States,” Linder said. “They heard from other offices. Their specialties are also increasing.”
-With the help of Nicholas Paracei and Woy Di.
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