Dubai developer Deyaar plans new projects worth $82m as UAE property market rebounds

Dubai property developer Deyaar plans to launch three new projects worth Dh300 million ($82 million) as it focuses on expanding its real estate portfolio amid higher demand from buyers.

The projects, comprising about 400 residential units and hotel apartments, will be launched in the Al Furjan area of Dubai, the company said on Tuesday in a statement to the Dubai Financial Market, where its shares are traded.

Deyaar’s first project will be Amalia Residences while the remaining two will be announced next year.

The company, however, did not provide a construction timeline for the projects or how it plans to fund them.

“We are pleased to announce the expansion of our growing portfolio of residential and hotel projects in conjunction with the launch of our presence in Al Furjan through three distinct projects,” Saeed Al Qatami, chief executive of Deyaar, said.

“These projects … bring unique housing options to the Al Furjan area.”

The launch comes at a time when the UAE’s property market continues to recover from a pandemic-induced slowdown.

Government initiatives such as residency permits for retirees and remote workers, and the expansion of the 10-year Golden Visa programme have helped, as well as the economic boost from Expo 2020 Dubai and higher oil prices.

The UAE’s economy is forecast to grow by more than 6 per cent this year, after expanding 3.8 per cent in 2021, the International Monetary Fund said.

Property transactions also continued to rise in the Emirates amid the economic recovery.

Dubai recorded 10,941 transactions in November, the highest since 2011, Property Finder said, marking a 58.50 per cent increase year on year.

In terms of value, there was a 70.80 per cent rise year on year to Dh30.5 billion.

Dubai's prime residential market is set for the world's strongest growth next year, property consultancy Knight Frank said.

To mark the launch of the new project, Deyaar is offering “flexible payment plans of up to five years, and a full exemption from real estate registration fees”, its vice president of sales, Nasser Amer, said.

Deyaar is majority owned by Dubai Islamic Bank, the UAE’s biggest Sharia-compliant lender. It is the developer behind the Midtown project in Dubai Production City, with an investment of Dh2.6 billion.

Earlier this month, the company said it has received a payment of Dh200 million after it signed the final settlement agreement in its land dispute with master developer Limitless.

In 2019, a UAE court ordered Limitless to pay Dh411.9 million to Deyaar in a dispute related to the purchase of land. The court also ordered Limitless to pay Deyaar's fees, as well as Dh61.1 million in compensation.