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UAE developers enters the $110.83 trillion US realty market

UAE developers enters the $110.83 trillion US realty market

Arabian Post7 hours ago

By Saifur Rahman
A number of UAE developers are entering the lucrative US$110.83 trillion real estate market in the United States, after their success in the UAE, which saw real estate transactions exceeded Dh893 billion last year. Americans are also one of the top ten nationalities to invest in the UAE's real estate market where rental yield ranges between 7 to 9 percent.
'Emirati investments in the US, totaling over US$1 trillion, span from real estate to renewable energy, driving economic growth and creating jobs,' according to a report by UAE Embassy in Washington.
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'The UAE-US trade and investment partnership continues to be a testament to the strength and potential of international cooperation. The UAE trades with all 50 US states, significantly supporting the American economy. US trade with UAE supports 161,000 American jobs.'
The UAE recently announced investment of US$1.4 trillion in US data centres while UAE's ADNOC said, it will invest US$60 billion in expanded energy partnerships with major US firms and Emirates Global Aluminum said it will invest US$$4 billion in an aluminum smelter in Oklahoma. The enterprise value of UAE investments in the U.S. energy sector will rise to $440 billion by 2035 from $70 billion now.
Among the UAE developers, Moafaq Al Gaddah (MAG) Group, Invest Group Overseas (IGO), Mulk Holding, Dar Global and Sobha Realty have already announced a number of their projects that are being developed in different cities in the US. Damac Group earlier announced US$20 billion investment in data centre in the US.
'For American investors, UAE real estate offers high yields, tax benefits, and diversification in a fast-growing market. Investing in UAE real estate provides capital security, global market access, and an inflation hedge,' according to Martin Kocher, Partner at Alternative Investments.
Abu Dhabi's Mubadala Investment Company has recently injected new capital into the US alternative real estate commercial lender 3650 REIT as part of a recent funding round. Mubadala's website indicates that its real estate division has partnered with 3650 REIT and CalSTRS to commit up to US$4 billion towards the US real estate credit markets.
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'The total value of the US housing market is approaching US$50 trillion, having added $3.1 trillion in value over the past year. This represents a 6.6 percent rise compared to June 2023 and is more than double the value of a decade ago. Residential real estate is expected to be the dominant segment of the US real estate market, with a projected market volume of US$110.83 trillion in 2025,' said a recent report by Statista, a global market intelligence provider.
Foreign investment in U.S. real estate surpassed US$1.2 trillion in the last 15 years, according to a report published by The Regulatory Review.
Foreign buyers purchased 54,300 properties, worth US$42 billion from April 2023 through March 2024, according to the US National Association of Realtors (NAR). Foreign buyers who resided in the U.S. as recent immigrants or who were holding visas that allowed them to live in the U.S. purchased US$22.6 billion worth of U.S. existing homes, representing 54 percent of the dollar volume of purchases. Foreign buyers who lived abroad purchased US$19.4 billion worth of existing homes, accounting for 46 percent of the dollar volume. International buyers accounted for 2 percent of the US$2.1 trillion in total annual US existing-home sales during that period.
Florida remained the top destination for foreign buyers, accounting for 20 percent of all international purchases. Texas (13%) and California (11%) were second and third, respectively, followed by Arizona (5%), Georgia, New Jersey, New York and North Carolina (4% each), NAR said.
Inventory in Miami-Dade County, which includes one of the most expensive metro markets in Florida and the country, rose by over 43 percent in April compared to the same month a year earlier, according to data from Miami Realtors.
This surge in for-sale homes could be a telltale sign of an impending cooldown in Miami-Dade's housing market, even as prices continue to rise in the county at a rate five times faster than the national level, according to Redfin data.
The news comes as more than 100 real estate exhibitors from 15 countries including UAE are going to participate at the 2nd edition of America Property Exhibition, Summit and Gala Awards that will take place at the Miami Convention Centre from September 15-17, 2025. Organised by MIE Events, an international events organiser, and supported by Dubai Land Department, the 2nd America Property Exhibition (APEX) will see major UAE real estate developers; brokers and investors participate in the three-day event that will also focus on the cross-border investment in real estate and construction sector worldwide. APEX will attract more US investors and property buyers to buy properties in the UAE.
The APEX takes place a few months after the UAE's recent announcement of investment outlay of US$1.4 trillion in US economy in the next ten years in various sectors like AI infrastructure, semiconductors, energy, housing and American manufacturing.
More than 3,000 professional realtors are expected to attend the three-day event in which more than 100 global real estate projects will be showcased where 150 experts and speakers will offer their insights and more than 100 VIP buyers will attend to invest in the projects that will be showcased at the APEX 2025 Exhibition and Conference.
'APEX is designed to be the leading international real estate platform in the US, promoting global investment, innovation, and partnerships in the property sector and we are delighted to announce the dates for the 2nd APEX this September, following our successful first edition held last year,' Zahoor Ahmed, Vice-President for Strategy and Partnerships at MIE Events, says.
'We are also happy to announce our partnership with the Dubai Land Department which has lent its strong support to the event that is expected to attract investment from the North American markets to the UAE's property market in the coming years. This way, APEX is going to play a crucial role in strengthening the US-UAE economic partnership.'
Also published on Medium.
Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.

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