In a bid to capitalize on the thriving real estate market in Dubai, Emaar Properties is set to invest a whopping $21 billion in two high-end residential projects. The move comes as the city’s property prices and rents approach record levels.
What Happened: Emaar, renowned for constructing the Burj Khalifa, the world’s tallest tower, is initiating sales at The Heights Country Club, an 81 million square feet development valued at 55 billion dirhams. The company also plans to offer residences at the Grand Club Resort, a 41-billion-dirham project that will feature a wellness resort, reported Bloomberg.
The new developments, which will include luxury villas and townhouses, are expected to significantly boost the company’s sales and profitability. The surge in demand for real estate in Dubai has been fueled by an influx of people from around the world, reversing a years-long slump in the city’s property market.
Despite mortgage rates reaching their highest levels in two decades, property prices and rents in Dubai are nearing record highs. This has led to a rush in demand, with hundreds of buyers queuing overnight outside the offices of another developer, Nakheel, earlier this month.
Why It Matters: Dubai’s real estate market has been on an upward trajectory, with several factors contributing to its growth. In a strategic move to expand its private credit business in Asia, Goldman Sachs secured a $1 billion deal with Mubadala Investment, a sovereign wealth fund based in Abu Dhabi. This deal will enable Goldman to pursue private credit deals in the Asia-Pacific region.
Moreover, the city’s focus on sustainability and luxury is evident in the recent launch of a luxury-focused ride-hailing service, Wheely, which offers rides in Dubai using a fleet of electric cars. This aligns with the global shift away from fossil fuels, as proposed in the COP28 draft, which emphasizes a significant move from fossil fuels to achieve net zero by 2050.
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