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South China Morning Post
a day ago
- Business
- South China Morning Post
HKEX to connect Asian start-ups with worldwide investors as exchange marks silver jubilee
Hong Kong Exchanges and Clearing (HKEX) will broaden its role to connect companies across Asia with global capital through secondary listings in the city, the bourse operator's chairman said. HKEX is already linked with 20 of the world's stock exchanges through mutual recognition agreements, a technical accreditation that lets companies listed in Thailand, Indonesia, Singapore, Saudi Arabia and Abu Dhabi sell additional shares in Hong Kong. 'There is certainly interest among Asian companies to tap [global and mainland Chinese] funds in Hong Kong, indicating that Hong Kong can be a major regional connector [besides] its core position connecting China with the world,' Carlson Tong Ka-shing said in an interview this week after attending the World Federation of Exchanges board meeting in Singapore. Two Singapore-based companies listed in Hong Kong this year, while a Thai coconut-water producer based in the Lion City is also in the queue to raise funds in Hong Kong. Carlson Tong Ka-shing, chairman of the Hong Kong Exchanges and Clearing Limited (HKEX), during an interview on June 11, 2025. Photo: Edmond So.
Gulf Business
22-05-2025
- Business
- Gulf Business
Nisus Finance on why global investors are turning to UAE real estate
Image: Supplied The UAE's real estate sector is going to see an influx of global private capital, institutional capital, and international family offices and funds as the market matures. With strong regulatory environment that supports international capital to benefit from the opportunities, capital from all over the world is entering the UAE market. It is expected to see a shift towards digitization with Cryptocurrency, Tokenisation, Virtual Assets, Crowdfunding, Fractional Ownership, among others. Amit Goenka, Chairman and MD of Nisus Finance, explains why and how this is happening and how the market will benefit from the influx of new capital. What's driving the growing appeal of real estate funds like yours in 2025 — and how are institutional investors benefiting from the size, speed, and governance advantages they offer over traditional channels? UAE has historically been seen as a trading hub—and not a permanent economy for international investment directly into capital assets. However, with the extraordinary vision of the Rulers, who have created future ready foundations, we see a paradigm shift. The UAE is now more of a destination for global capital to invest and benefit from the opportunities thanks to its strong regulatory environment, progressive policies, and supportive ecosystem. The UAE real estate market comprises almost US$680 billion worth of assets and US$ 207 billion of annual sales today. It is one of the fastest growing real estate markets globally with the highest rental yields, hospitality demand and new emergence of office, healthcare, education, and industrial assets, which are in short supply. We see that the total amount of funding required each year to continue this pace of growth is in excess of US$100 billion. Also traditional families are unlocking legacy assets with an estimated USD 8 billion of free hold rented assets available for sale and another USD 6 billion of GCC assets for sale. There is hence a unique opportunity for institutional funds to buy into this USD 14 billion plus basket. Monies realized from such sales will recycle back into new age asset classes like tokenization and new real estate projects. So we see this USD 100 billion real estate finance gap and USD 14 billion of asset sales as core value proposition. So, the need for private capital, private credit, and private equity to part-fund or buy into these developments is very critical to continue the current pace of growth. With NiFCO deploying capital in areas like JVC and Al Furjan, how do you view the long-term investment case for affordable housing in Dubai, and how is this segment evolving? We have a sharp focus on affordable housing. About 95 percent of the rental demand lies in the affordable housing market which is under short supply. We have seen nearly 1000 families take up residency each day in Dubai (which makes over 90,000 residencies in the first quarter of 2025) which are prime consumers for mid income and affordable housing The rental growth has surged by over 28% y-o-y and capital value has gone up by over 20% on the back of this influx. For investment, affordable housing is always a safe bet as demand will continue to be high for affordable housing as over 4 million people are expected to be added to the country's population over the next few years . I don't think the affordable housing segment will have any problem in attracting investment. The recent announcement of Dubai Residential REIT, GCC's first pure-play listed residential leasing-focused REIT, expected to be the GCC's largest listed REIT, with a gross asset value ('GAV') of AED 21.63 billion, strongly underscores our hypothesis. The market is in the formation stage for institutional capital of participate in this high growth high yield story. Locations like Jumeirah Village Circle (JVC) and Al Furjan are the top mid income housing micro markets of Dubai. We continue to focus on such key locations like Arjan, Dubai Silicon Oasis, Barsha, Motor City, Production City, Dubai South etc and GCC locations like Mankhool which are top destinations for mid income executive housing. With key infrastructure initiatives like Etihad Rail, the Al Makhtoum International Airport, the growth is now south bound. The rental demand in these locations are nearly 5x of supply. Even after the new under construction projects are delivered, there will be an estimated shortage of nearly 39,000 dwelling units in Dubai basis current demand and much larger with the continued influx. Rents and capital values will hence continue to climb sharply over the next few years, delivering very high yields and appreciation to our portfolio. How is Nisus Finance incorporating tools like AI, PropTech, or Blockchain into your asset evaluation and management processes — and what impact are you seeing on returns or operational efficiency? Dubai Land Department (DLD) recently announced a real estate tokenisation pilot project. DLD anticipates that this initiative will drive significant growth in the real estate tokenisation sector, with its market value projected to reach Dh60 billion by 2033, representing 7 percent of Dubai's total real estate transactions. We obviously want to be part of this tokenisation project. Tokenisation or virtual assets are obviously the future asset class including in real estate. I think the global market itself is likely to triple from US$16 billion to about US$53 billion over the next few years. So we're definitely seeing a very large explosive opportunity in tokenisation in this part of the world. Regulators like Abu Dhabi Global Markets (ADGM) provide a platform for setting up blockchain-based real estate token platforms, including token markets. The infrastructure is there but global participation has to deepen. Crowd funding is also growing rapidly with digitization of real estate title deeds and online registrations. We actively engage proptech into our asset management. Our buildings are fully serviced through tech enablers who provide smart dashboards, predictive demand and supply analysis, tenancy management and instant financing solutions to create a real time vibrant ecosystem of satisfied occupiers. As investors we benefit from financial savings, high ROI, intelligent MIS and analytics and future proofing our solutions. From co-living to flexible workspaces, how is the changing lifestyle and work patterns influencing your fund's commercial real estate strategy in Dubai and beyond? These are new trends that are coming in the of developers are incorporating these concepts into their master-planned communities where people would live, work, play and get entertained, without having to leave the community. I'm sure new funds will be made available to spearhead the growth of these sectors. Student accommodations, shared accommodation for the digital nomads, coders, content creators and the creative communities are also coming up in different parts of the UAE in a big way. A number of investors, including REITs are investing in these assets. How is Nisus Finance integrating sustainability metrics and ESG frameworks into your portfolio, particularly in light of Dubai's push toward greener building standards? Buildings are a large source of emission. Sustainability is very crucial for achieving net zero targets and reducing emissions and we are focusing on sustainable developments for financing – as part of the United Nations Sustainable Development Goals (SDGs). However, in order to invest in sustainable assets, we need an influx of more sustainable properties in the country. Currently between 10-15 percent of our investment are into sustainable projects. We are investing into our assets to make them net zero, employing smart grid solutions, hydroponics, waste management and refurbishing the utilities and common areas to make them aesthetic, value added and SDG compliant. We have as a fund house always incorporated ESG framework into our investments. Not only are we active within the community of our investments, we pride ourselves on a transparent system for stakeholders, compliance with the highest standards and incorporating IFC EDGE into our developments and assets. Do you see innovations like REITs and fractional ownership as complementary or competitive to institutional funds like yours — and how might they evolve in the GCC? As mentioned, Dubai Residential REIT with an estimated AED 21.6 billion in value strongly highlights and underscores our strategy and portfolio built up even while the AED 60 billion tokenization initiative of DLD is underway. They are both strongly complementary and accelerate the engagement of global investors across socio economic and asset classes. These are very early stages in a very large market with huge head room for mutual growth. WE are also concurrently seeing crowd funding. NFTs and other digital assets gain strong momentum backed by growing real estate appetite. What do you believe is underpinning Dubai's sustained appeal as a real estate investment destination — and how is your fund positioning itself to capitalise on this long-term growth story? The UAE's leaders, through a multi-pronged Vision 2030 road map, are leading from the front to ensure that this country remains at the forefront of sustainability, technology, economic growth and social welfare. Dubai has created a unique ecosystem for global citizens aspiring for safety, quality of life, education, healthcare, tax friendly environment, ease of living and doing business through a paradigm shift in policies, positioning and value proposition. Investments are directly into non-oil sectors including renewable and green energy, AI, ML and deep tech, with job creation across manufacturing, logistics, technology, construction, finance, hospitality, tourism and allied services. The development of infrastructure is keeping the demand of 2050 in mind with automation, access and accountability at the core. With an estimated population growth of 4 mn over the next few years and almost 1,000 new residents every day, the appeal of real estate is bound to continue leap frogging over a decade and beyond. We see ourselves uniquely positioned to capitalize on this sustained growth story by pooling global investors and local institutions into a uniquely structured, risk mitigated investment platform within the DIFC, delivering sustained superior yields and capital gains in a diversified core plus asset basket.
Trade Arabia
08-05-2025
- Business
- Trade Arabia
Dubai real estate surges in April; residential sales jump 61%
Dubai's real estate market posted exceptional results in April, with residential sales transactions reaching 17,447, an impressive 61% increase compared to the same month last year, while commercial rental activity surged, including a 22.4% rise in average office rents and a sharp 40.8% jump in warehouse rates, a report said. These figures, published in the April 2025 report from Engel & Völkers Middle East, a leader in premium residential and commercial real estate services, underscore Dubai's continued strength as a magnet for global capital, even amid wider economic uncertainty and shifting investor sentiment worldwide. In the residential sector, transaction volumes not only outpaced April 2024 but also exceeded the monthly average of Q1 2025 by over 20%, highlighting strong underlying demand. A softer US dollar improved affordability for overseas buyers, further fuelling interest in both off-plan and secondary markets. International investors remain drawn to Dubai's combination of lifestyle, high returns, and relative value compared to other global cities. Commercial real estate echoed this momentum, supported by sustained population growth and an increasingly diversified economy. Core business districts such as Business Bay and Jumeirah Lake Towers saw strong absorption and limited new stock, pushing average office rents up more than 22% compared to April 2024. In parallel, the logistics and industrial sector is experiencing an unprecedented surge, with warehouse rents climbing nearly 41% year-on-year—a result of surging demand from e-commerce, manufacturing, and trade sectors seeking well-located, high-specification space, the report said. 'Dubai continues to set itself apart on the global real estate stage,' said Daniel Hadi, CEO of Engel & Völkers Middle East. 'Buyers and investors are responding to the city's unique combination of quality lifestyle, competitive yields, and policy stability. This performance underscores Dubai's growing appeal to global investors, developers, and end-users seeking long-term growth and value in a secure, well-managed environment. The momentum reflects strong demand fundamentals and increasing recognition of Dubai as a safe haven and long-term growth market.' Residential activity remained broad-based, with both established and emerging communities seeing sustained demand. Jumeirah Village Circle remained the city's highest transacting area, appealing to end-users and investors drawn to its relative value. Damac Islands gained momentum, meeting the growing demand for affordable waterfront villas and townhouses. Meanwhile, Business Bay and Dubai Marina remained among the top-performing apartment markets, combining strong lifestyle appeal with consistent investor interest. While overall prices are still trending upward, Engel & Völkers noted early signs of stabilisation in mature communities -- an indicator of a more balanced, sustainable market. Strong fundamentals, investor-friendly policies, and a transparent regulatory environment continue to support Dubai's long-term growth trajectory. On the commercial side, top-performing areas for transaction activity included Business Bay, Motor City, JLT, and Barsha Heights -- all offering strong fundamentals and strategic advantages for businesses across sectors. The limited availability of Grade A office space, coupled with a steady influx of companies establishing regional headquarters in Dubai, is expected to keep upward pressure on rents through the second half of the year. Meanwhile, warehouse operators continue to compete for space near trade corridors, free zones, and last-mile delivery hubs, driving sustained rental growth across key industrial clusters. As Dubai cements its position as a gateway between East and West and as a magnet for innovation and investment, Engel & Völkers Middle East forecasts continued momentum through the remainder of 2025. With strong market fundamentals, resilient buyer sentiment, and record levels of global interest, the city's property market is on track to deliver another record-breaking year, it said. – TradeArabia News Service
