Aldar sees strong international demand for its first Dubai houses

Aldar Properties PJSC, Abu Dhabi’s biggest developer, is starting sales of its first housing development in neighboring Dubai as strong demand in the Middle East’s business and tourism hub provides a lucrative opportunity for developers.

The firm is planning three projects in Dubai with a total development value of 5.4 billion (Dh 20 billion). Its joint venture with Dubai Holding will kick off sales at Haven, a development of 2,400 homes, on Tuesday, Aldar’s acting chief finance and sustainability officer Faisal Falaknaz said in a call with reporters on Monday.

Dubai’s property market has broken a decade-long record for total home sales and seen rents jump to unprecedented levels. The rebound from a seven-year slump has been fueled by an influx of newcomers, from crypto millionaires and bankers relocating from Asia, to wealthy Russians seeking to shield assets. The government has also relaxed visa laws and introduced visas for job seekers and freelancers.

“The demand over the past week has been astounding,” Falaknaz said. “We’re getting a lot of queries internationally.”

The homes at Haven, which have prices starting at Dh 2.5 million, will be sold in phases based on demand, he said. Amenities will include a central park, pools, and play areas for children along with a community center built in the shape of a tree house, according to marketing materials.

Aldar said separately on Monday that its attributable profit for the third quarter reached 794.2 million dirhams, a 43 percent increase from a year earlier. The company has a backlog of Dh 29.1 billion in development revenue that’ll be booked over the next two to three years. Falaknaz said the company’s next project in Dubai will start next year.

The company’s efforts to expand outside Abu Dhabi also include plans to build luxury residences in Ras Al Khaimah, a city about 45 minutes from Dubai that’s positioning itself as a haven for high net worth individuals. The homes will be branded by international luxury beach club Nikki Beach Global.

“One of the areas that we’re very keen on growing is our alternative real estate allocation,” Falaknaz said. “The markets in Europe provide a lot of depth and breadth in terms of those asset classes being logistics, storage, student housing, and credit. In addition, we have some attractive pockets in terms of development sales, which have a lot of synergies with our customer base here.”

Aldar is likely to gain exposure to the asset class through either a joint venture or an investment in another company, he said, declining to specify the amount the firm plans to spend on investments in Europe.

Shares in Aldar have gained 12 percent this year compared with a 9 percent drop for the benchmark Abu Dhabi stock index.