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Yahoo
5 days ago
- Business
- Yahoo
A Surge In Value Of 70% In 4 Years Sees Wall Street Running To Invest In Dubai Real Estate
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Dubai's real estate market has been on a roll recently, with property values increasing by 70% in four years. This has caught the attention of Wall Street, and now, Bloomberg reports, some of New York's biggest investment banks want a piece of the action. According to Bloomberg, Brookfield is considering developing a mixed-use community in the Dubai Hills neighborhood, its first investment in the area. Goldman Sachs (NYSE:GS) and Asia-based asset manager Hillhouse Investment have already invested heavily in Dubai real estate. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Dubai's luxury residential market is renowned for its celebrity clientele. However, recently, the city's commercial sector has been making headlines. In the last two years, there have been eight office building sales, Bloomberg reports, more than in the prior decade. Hotel transactions have been equally as prolific, with real estate consultancy Knight Frank reporting 15 sales occurring over the last 30 months. "The past two years have been busier for us than the whole previous decade on the capital market side," Andrew Love, head of capital markets and commercial agency at Knight Frank, told Bloomberg. "Demand is growing from overseas buyers who are coming in search of better returns and lower taxes." Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Like many major cities, Dubai's real estate market has been on a roller coaster recently. Overbuilding before the financial crash of 2008 led to expat residents escaping the city once they could no longer afford the payments on their debts, Bloomberg says. However, Dubai real estate has been on a tear since the pandemic. The city opened before many other metro areas that were still in lockdown, attracting well-heeled investors to its sunny shores. The city has also benefited from the fallout of the war in Ukraine, with many oligarchs looking to shield cash from sanctions and international governments, Bloomberg reported. Financial firms are also drawn to Dubai's low taxes and central global position. Brookfield began tentatively exploring the Dubai market in 2020 when the company's asset manager and its partner, Investment Corp. of Dubai, opened Dubai's largest office tower, ICD Brookfield Place, Bloomberg says. It quickly filled, garnering the highest rents in the city, allowing Brookfield to sell 49% of its share in the tower in a deal that saw the building valued at $1.5 investors, such as Singapore's Mapletree Investments, are looking to invest around $2 billion, and Goldman Sachs has invested $25 million into hotelier Sunset Hospitality Group. UAE-based investors have also been at the forefront of new construction; Aldar Properties—the city's biggest listed developer—raised $500 million from Apollo Global Management (NYSE:APO), bringing Apollo's total investment to $1.9 billion since 2022, Bloomberg says. There is a shortage of existing cash-flowing buildings for foreign investors to buy in Dubai, as most are owned by wealthy Emirati families or government entities. "The institutional money wants to be here and is starting to arrive, but the challenge is stock to sell," Knight Frank's Love told Bloomberg. "Most of the offices have been built by government and semi-government entities," he added, explaining that the "lack of Grade A buildings to acquire means there is a lack of market depth, which an institution requires to make it worth their while to enter the market." Read Next: Invest Where It Hurts — And Help Millions Heal: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock Send To MSN: 0 This article A Surge In Value Of 70% In 4 Years Sees Wall Street Running To Invest In Dubai Real Estate originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
20-05-2025
- Business
- The Star
Dubai's red-hot real estate attracts big name backers
Iconic view: The Sheikh Zayed Road is seen with Dubai's iconic skyline illuminated in the background. — AP DUBAI: Dubai's real estate market – where property values have surged 70% in the last four years – is starting to entice a slew of new Wall Street investors. Brookfield Corp is weighing plans to develop a mixed-use community in the Dubai Hills neighbourhood, which would be its first residential real estate bet in the region, according to sources. A property manager owned by Singapore's Temasek Holdings is also currently scouting for investments in the city, some of the sources said. They would be joining the likes of Goldman Sachs Group and Asia-based asset manager Hillhouse Investment, which have both recently ploughed millions into the emirate's real estate. They have all been drawn by the surge in activity taking place across Dubai. In the last 24 months, the city recorded eight office building sales – more than the previous 10 years combined. The same goes for hotel transactions, where 15 deals took place in the past 30 months, according to real estate consultancy Knight Frank. 'The past two years have been busier for us than the whole previous decade on the capital market side,' said Andrew Love, head of capital markets and commercial agency at Knight Frank. 'Demand is growing from overseas buyers who are coming in search of better returns and lower taxes.' It is a far cry from the years following the financial crisis, when the image of hundreds of luxury cars left abandoned at Dubai International Airport by expats who could not keep up with their debts was etched into the minds of institutional investors around the world. It had been a visceral reminder of the boom-and-bust nature of the real estate market in the city, where the population is still dominated by foreigners to this day. Dubai's turnaround started in the aftermath of the pandemic when the city reopened earlier than others, drawing scores of wealthy tourists and investors to its sunny shores. The government's introduction of more liberal visa policies poured more fuel on that rally. After Russia's invasion of Ukraine, many of the country's wealthy moved some of their cash to the city in an effort to shield their assets from sanctions and tighter capital controls at home. They were soon joined by loads of newly minted crypto millionaires and hedge fund managers who were lured to Dubai by the emirate's low tax regime and a time zone that allows workers to trade across Asian, European and US hours. Taken together, the moves have sparked an unprecedented surge in residential and commercial real estate values. In the first quarter of 2025, before US President Donald Trump's trade war weighed on investor sentiment and contributed to a plunge in oil prices, Dubai notched record sales of homes valued above US$10mil. Brookfield began furthering its foray into Dubai's real estate market in 2020. Back then, the asset manager – along with its partner Investment Corporation of Dubai (ICD) – opened ICD Brookfield Place, Dubai's largest office tower. The building quickly filled up and now commands the city's highest commercial rents; in 2024, Brookfield was able to offload a 49% stake in the tower in a deal valuing the property at US$1.5bil. Now, the Canadian firm is weighing plans to build residential towers alongside offices and retail space that it would make available to rent in Dubai Hills, an area known for its luxury villas. Then there is Mapletree Investments, a property manager owned by Singapore's sovereign wealth fund Temasek. The firm's hoping to deploy about US$2bil in the Gulf region after opening an office in Abu Dhabi in 2024, other sources said. Inside Blackstone, executives have also held preliminary discussions across the Middle East region about commercial real estate investments, the sources said. — Bloomberg
Business Times
18-05-2025
- Business
- Business Times
Dubai's red-hot real estate attracts big name backers, including Mapletree
DUBAI'S real estate market – where property values have surged 70 per cent in the last four years – is starting to entice a slew of new Wall Street investors. Brookfield is weighing plans to develop a mixed-use community in the Dubai Hills neighbourhood, which would be its first residential real estate bet in the region, according to people familiar with the matter. A property manager owned by Singapore's Temasek Holdings is also currently out scouting for investments in the city, some of the people said. They'd be joining the likes of Goldman Sachs Group and the Asia-based asset manager Hillhouse Investment, which have both recently ploughed millions into the emirate's real estate. They've all been drawn by the surge in activity taking place across Dubai. In the last 24 months, the city recorded eight office buildings sales – more than the previous 10 years combined. The same goes for hotel transactions, where 15 deals took place in the past 30 months, according to the real estate consultancy Knight Frank. 'The past two years have been busier for us than the whole previous decade on the capital market side,' said Andrew Love, head of capital markets and commercial agency at Knight Frank. 'Demand is growing from oversees buyers who are coming in search of better returns and lower taxes.' It's a far cry from the years following the financial crisis, when the image of hundreds of luxury cars left abandoned at Dubai International Airport by expats who couldn't keep up with their debts was etched into the minds of institutional investors around the world. It had been a visceral reminder of the boom-and-bust nature of the real estate market in the city, where the population is still dominated by foreigners to this day. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Newfound enthusiasm Dubai's turnaround started in the aftermath of the pandemic when the city reopened earlier than others, drawing scores of wealthy tourists and investors to its sunny shores. The government's introduction of more liberal visa policies poured more fuel on that rally. After Russia's invasion of Ukraine, many of the country's wealthy moved some of their cash to the city in an effort to shield their assets from sanctions and tighter capital controls at home. They were soon joined by loads of newly minted crypto millionaires and hedge fund managers who were lured to Dubai by the emirate's low-tax regime and a time zone that allows workers to trade across Asian, European and US hours. Taken together, the moves have sparked an unprecedented surge in residential and commercial real estate values. In the first quarter of this year, before US President Donald Trump's trade war weighed on investor sentiment and contributed to a plunge in oil prices, Dubai notched record sales of homes valued above US$10 million. Brookfield began furthering its foray into Dubai's real estate market in 2020. Back then, the asset manager – along with its partner Investment Corp of Dubai – opened ICD Brookfield Place, Dubai's largest office tower. The building quickly filled up and now commands the city's highest commercial rents; last year, Brookfield was able to offload a 49 per cent stake in the tower in a deal valuing the property at US$1.5 billion. Now, the Canadian firm is weighing plans to build residential towers alongside offices and retail space that it would make available to rent in Dubai Hills, an area known for its luxury villas. Then there's Mapletree Investments, a property manager owned by Singapore's sovereign wealth fund Temasek. The firm is hoping to deploy about US$2 billion in the Gulf region after opening an office in Abu Dhabi last year, other people familiar with the matter said. Inside Blackstone, executives have also held preliminary discussions across the Middle East region about commercial real estate investments, the people familiar with the matter said. They'd be in the company of a bevy of other big name backers that have invested across the city. In April, Goldman's asset management arm plowed US$25 million into the UAE's Sunset Hospitality Group to allow the hotelier to expand its portfolio of resorts in the region. Hillhouse this month made its debut investment in the region when its unit Rava Partners acquired the real estate of Hartland International School in Dubai, in a deal valuing the property at US$100 million. In nearby Abu Dhabi, Aldar Properties – the city's biggest listed developer – raised US$500 million from Apollo Global Management in January in one of the region's largest-ever corporate hybrid private placements. The deal meant Apollo has led investments totalling US$1.9 billion in Aldar across four transactions since 2022. The latest investment underscores Apollo's 'commitment to serving as a leading capital provider to the broader Abu Dhabi ecosystem,' Jamshid Ehsani, a partner at Apollo, said in a statement announcing the news. Representatives for Mapletree, Brookfield and Blackstone declined to comment. Lack of supply One major problem remains for the overseas asset managers, insurers and pension funds looking to invest in the city's real estate: finding revenue-generating assets that they are actually able to purchase. To this day, many of the city's buildings are owned by wealthy Emirati families or government entities, who are keen to hold onto the lucrative assets. That's forcing many funds and investors to consider investing in new developments. 'The institutional money wants to be here and is starting to arrive, but the challenge is stock to sell,' Knight Frank's Love said. 'Most of the offices have been built by government and semi-government entities,' he said, adding that means there is a 'lack of Grade A buildings to acquire, which means there is lack of market depth, which an institution requires to make it worth their while to enter the market'. Getting traction So far, that risk hasn't hindered Martin Linder, who's Global Partners Limited has raised over US$350 million for its second fund after securing investments from American family offices, two German pension fund and a prominent Singaporean institution. For Linder, it's a stark reversal from when he was raising Global Partner's first fund, when he spent six months in Boston trying to convince a myriad of investors of Dubai's potential. At the time, few were swayed by a market they knew little about, he said. Linder ultimately did raise more than US$200 million that first go around and used it to construct two residential buildings on Dubai's Water Canal. After that first fund started paying out investors over time, conversations with backers got easier. 'We get cold calls from high profile family offices from the United States,' Linder said. 'They've heard from other offices. Their allocations are also getting bigger.' BLOOMBERG
Business Times
18-05-2025
- Business
- Business Times
Dubai's red-hot real estate is starting to attract big name backers
DUBAI'S real estate market – where property values have surged 70 per cent in the last four years – is starting to entice a slew of new Wall Street investors. Brookfield is weighing plans to develop a mixed-use community in the Dubai Hills neighbourhood, which would be its first residential real estate bet in the region, according to people familiar with the matter. A property manager owned by Singapore's Temasek Holdings is also currently out scouting for investments in the city, some of the people said. They'd be joining the likes of Goldman Sachs Group and the Asia-based asset manager Hillhouse Investment, which have both recently ploughed millions into the emirate's real estate. They've all been drawn by the surge in activity taking place across Dubai. In the last 24 months, the city recorded eight office buildings sales – more than the previous 10 years combined. The same goes for hotel transactions, where 15 deals took place in the past 30 months, according to the real estate consultancy Knight Frank. 'The past two years have been busier for us than the whole previous decade on the capital market side,' said Andrew Love, head of capital markets and commercial agency at Knight Frank. 'Demand is growing from oversees buyers who are coming in search of better returns and lower taxes.' It's a far cry from the years following the financial crisis, when the image of hundreds of luxury cars left abandoned at Dubai International Airport by expats who couldn't keep up with their debts was etched into the minds of institutional investors around the world. It had been a visceral reminder of the boom-and-bust nature of the real estate market in the city, where the population is still dominated by foreigners to this day. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Newfound enthusiasm Dubai's turnaround started in the aftermath of the pandemic when the city reopened earlier than others, drawing scores of wealthy tourists and investors to its sunny shores. The government's introduction of more liberal visa policies poured more fuel on that rally. After Russia's invasion of Ukraine, many of the country's wealthy moved some of their cash to the city in an effort to shield their assets from sanctions and tighter capital controls at home. They were soon joined by loads of newly minted crypto millionaires and hedge fund managers who were lured to Dubai by the emirate's low-tax regime and a time zone that allows workers to trade across Asian, European and US hours. Taken together, the moves have sparked an unprecedented surge in residential and commercial real estate values. In the first quarter of this year, before US President Donald Trump's trade war weighed on investor sentiment and contributed to a plunge in oil prices, Dubai notched record sales of homes valued above US$10 million. Brookfield began furthering its foray into Dubai's real estate market in 2020. Back then, the asset manager – along with its partner Investment Corp of Dubai – opened ICD Brookfield Place, Dubai's largest office tower. The building quickly filled up and now commands the city's highest commercial rents; last year, Brookfield was able to offload a 49 per cent stake in the tower in a deal valuing the property at US$1.5 billion. Now, the Canadian firm is weighing plans to build residential towers alongside offices and retail space that it would make available to rent in Dubai Hills, an area known for its luxury villas. Then there's Mapletree Investments, a property manager owned by Singapore's sovereign wealth fund Temasek. The firm is hoping to deploy about US$2 billion in the Gulf region after opening an office in Abu Dhabi last year, other people familiar with the matter said. Inside Blackstone, executives have also held preliminary discussions across the Middle East region about commercial real estate investments, the people familiar with the matter said. They'd be in the company of a bevy of other big name backers that have invested across the city. In April, Goldman's asset management arm plowed US$25 million into the UAE's Sunset Hospitality Group to allow the hotelier to expand its portfolio of resorts in the region. Hillhouse this month made its debut investment in the region when its unit Rava Partners acquired the real estate of Hartland International School in Dubai, in a deal valuing the property at US$100 million. In nearby Abu Dhabi, Aldar Properties – the city's biggest listed developer – raised US$500 million from Apollo Global Management in January in one of the region's largest-ever corporate hybrid private placements. The deal meant Apollo has led investments totalling US$1.9 billion in Aldar across four transactions since 2022. The latest investment underscores Apollo's 'commitment to serving as a leading capital provider to the broader Abu Dhabi ecosystem,' Jamshid Ehsani, a partner at Apollo, said in a statement announcing the news. Representatives for Mapletree, Brookfield and Blackstone declined to comment. Lack of supply One major problem remains for the overseas asset managers, insurers and pension funds looking to invest in the city's real estate: finding revenue-generating assets that they are actually able to purchase. To this day, many of the city's buildings are owned by wealthy Emirati families or government entities, who are keen to hold onto the lucrative assets. That's forcing many funds and investors to consider investing in new developments. 'The institutional money wants to be here and is starting to arrive, but the challenge is stock to sell,' Knight Frank's Love said. 'Most of the offices have been built by government and semi-government entities,' he said, adding that means there is a 'lack of Grade A buildings to acquire, which means there is lack of market depth, which an institution requires to make it worth their while to enter the market'. Getting traction So far, that risk hasn't hindered Martin Linder, who's Global Partners Limited has raised over US$350 million for its second fund after securing investments from American family offices, two German pension fund and a prominent Singaporean institution. For Linder, it's a stark reversal from when he was raising Global Partner's first fund, when he spent six months in Boston trying to convince a myriad of investors of Dubai's potential. At the time, few were swayed by a market they knew little about, he said. Linder ultimately did raise more than US$200 million that first go around and used it to construct two residential buildings on Dubai's Water Canal. After that first fund started paying out investors over time, conversations with backers got easier. 'We get cold calls from high profile family offices from the United States,' Linder said. 'They've heard from other offices. Their allocations are also getting bigger.' BLOOMBERG
Straits Times
18-05-2025
- Business
- Straits Times
Dubai's red-hot real estate attracts big name backers, including Temasek-linked Mapletree
In the last 24 months, the city recorded eight office buildings sales – more than the previous 10 years combined. PHOTO: AFP Dubai's real estate market - where property values have surged 70 per cent in the last four years - is starting to entice a slew of new Wall Street investors. Brookfield Corporation is weighing plans to develop a mixed-use community in the Dubai Hills neighborhood, which would be its first residential real estate bet in the region, according to people familiar with the matter. A property manager owned by Singapore's Temasek Holdings is also currently out scouting for investments in the city, some of the people said. They would be joining the likes of Goldman Sachs Group and the Asia-based asset manager Hillhouse Investment, which have both recently plowed millions into the emirate's real estate. They have all been drawn by the surge in activity taking place across Dubai. In the last 24 months, the city recorded eight office buildings sales – more than the previous 10 years combined. The same goes for hotel transactions, where 15 deals took place in the past 30 months, according to the real estate consultancy Knight Frank. 'The past two years have been busier for us than the whole previous decade on the capital market side,' said Andrew Love, head of capital markets and commercial agency at Knight Frank. 'Demand is growing from oversees buyers who are coming in search of better returns and lower taxes.' It is a far cry from the years following the financial crisis, when the image of hundreds of luxury cars left abandoned at Dubai International Airport by expats who could not keep up with their debts was etched into the minds of institutional investors around the world. It had been a visceral reminder of the boom-and-bust nature of the real estate market in the city, where the population is still dominated by foreigners to this day. Newfound Enthusiasm Dubai's turnaround started in the aftermath of the pandemic when the city reopened earlier than others, drawing scores of wealthy tourists and investors to its sunny shores. The government's introduction of more liberal visa policies poured more fuel on that rally. After Russia's invasion of Ukraine, many of the country's wealthy moved some of their cash to the city in an effort to shield their assets from sanctions and tighter capital controls at home. They were soon joined by loads of newly-minted crypto millionaires and hedge fund managers who were lured to Dubai by the emirate's low-tax regime and a time zone that allows workers to trade across Asian, European and US hours. Taken together, the moves have sparked an unprecedented surge in residential and commercial real estate values. In the first quarter of 2025, before US President Donald Trump's trade war weighed on investor sentiment and contributed to a plunge in oil prices, Dubai notched record sales of homes valued above US$10 million (S$13 million). Brookfield began furthering its foray into Dubai's real estate market in 2020. Back then, the asset manager - along with its partner Investment Corporation of Dubai – opened ICD Brookfield Place, Dubai's largest office tower. The building quickly filled up and now commands the city's highest commercial rents; in 2024, Brookfield was able to offload a 49 per cent stake in the tower in a deal valuing the property at US$1.5 billion. Now, the Canadian firm is weighing plans to build residential towers alongside offices and retail space that it would make available to rent in Dubai Hills, an area known for its luxury villas. Then there is Mapletree Investments, a property manager owned by Singapore's sovereign wealth fund Temasek. The firm's hoping to deploy about US$2 billion in the Gulf region after opening an office in Abu Dhabi in 2024, other people familiar with the matter said. Inside Blackstone, executives have also held preliminary discussions across the Middle East region about commercial real estate investments, the people familiar with the matter said. They would be in the company of a bevy of other big name backers that have invested across the city. In April, Goldman's asset management arm plowed US$25 million into the UAE's Sunset Hospitality Group to allow the hotelier to expand its portfolio of resorts in the region. Hillhouse in May made its debut investment in the region when its unit Rava Partners acquired the real estate of Hartland International School in Dubai, in a deal valuing the property at US$100 million. In nearby Abu Dhabi, Aldar Properties – the city's biggest listed developer – raised US$500 million from Apollo Global Management in January in one of the region's largest-ever corporate hybrid private placements. The deal meant Apollo has led investments totaling US$1.9 billion in Aldar across four transactions since 2022. The latest investment underscores Apollo's 'commitment to serving as a leading capital provider to the broader Abu Dhabi ecosystem,' Mr Jamshid Ehsani, a partner at Apollo, said in a statement announcing the news. Representatives for Mapletree, Brookfield and Blackstone declined to comment. Lack of Supply One major problem remains for the overseas asset managers, insurers and pension funds looking to invest in the city's real estate: finding revenue-generating assets that they are actually able to purchase. To this day, many of the city's buildings are owned by wealthy Emirati families or government entities, who are keen to hold onto the lucrative assets. That's forcing many funds and investors to consider investing in new developments. 'The institutional money wants to be here and is starting to arrive, but the challenge is stock to sell,' Knight Frank's Love said. 'Most of the offices have been built by government and semi-government entities,' he said, adding that means there is a 'lack of Grade A buildings to acquire, which means there is lack of market depth, which an institution requires to make it worth their while to enter the market'. Getting Traction So far, that risk has not hindered Mr Martin Linder, who's Global Partners Limited has raised over US$350 million for its second fund after securing investments from American family offices, two German pension fund and a prominent Singaporean institution. For Mr Linder, it is a stark reversal from when he was raising Global Partner's first fund, when he spent six months in Boston trying to convince a myriad of investors of Dubai's potential. At the time, few were swayed by a market they knew little about, he said. Mr Linder ultimately did raise more than US$200 million that first go around and used it to construct two residential buildings on Dubai's Water Canal. After that first fund started paying out investors over time, conversations with backers got easier. 'We get cold calls from high profile family offices from the United States,' Mr Linder said. 'They've heard from other offices. Their allocations are also getting bigger.' BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
