Aldar Properties, Abu Dhabi's biggest listed real estate company, is building a series of new develop-to-hold properties in areas surrounding the emirate's airport as it boosts its portfolio, catering to the residential, commercial and logistics sectors.
The developments on Yas Island and in Al Shamkha, both near Zayed International Airport, come at a combined value of Dh3.8 billion ($1 billion), Aldar said on Monday.
Develop-to-hold properties are built for long-term leasing rather than being sold.
Calling the strategy a "core growth driver" for the company, Jassem Busaibe, chief executive of Aldar Investment, said it enables the company to "significantly expand" its diverse portfolio of income-generating assets across the UAE, "responding to client requirements for professionally managed commercial, residential, logistics, hospitality retail and education assets".
The strategy, which Aldar refers to as D-hold, bridges the company's core development and investment businesses, "leveraging expertise in development and active asset management to generate attractive returns and long-term capital appreciation", according to its latest annual report.
The new projects will bring the value of Aldar's develop-to-hold pipeline to about Dh17.6 billion and, upon completion, will become part of Aldar Investment’s income-generating real estate valued at Dh47 billion, the company said.
Aldar will develop a gated community on Yas Island, which will add 665 units – a mix of townhouses and villas – to its residential portfolio on the leisure and entertainment hub north-west of Zayed International, it said. The project is aimed at young professionals and families, Aldar added.
An additional 448 apartments will be built as an extension to Yas Residential Village, a community for people working on the island.
In parallel at Al Shamkha, Aldar will be developing new residences in the Alreeman community, south-east of the airport, comprising about 2,000 studios and one, two and three-bedroom units.
Both Al Shamkha and Yas Island are served by motorways connecting them to Abu Dhabi and Dubai.
In the commercial segment, Aldar will be constructing Yas Business Park, spanning 47,500 square metres across four towers. It will be built alongside Yas Mall and Aldar Square, the developer's headquarters.
Yas Business Park, which is expected to be completed by the second half of 2027, will cater to corporate tenants and feature several amenities and customisable spaces, Aldar said.
Aldar will also be expanding its Abu Dhabi Business Hub development by adding 175,000 sq m of floor area at an adjacent site, to serve tenants in the third-party logistics, e-commerce and distribution sectors.
"Our latest investments reflect the strong demand we are seeing for residential rental units, Grade A commercial space and logistics real estate in Abu Dhabi," Mr Busaibe said.
Real estate remains one of the key pillars of UAE's economy, proving its resilience after bouncing back strongly from the dip brought about by the Covid-19 pandemic.
Government measures such as residency permits for retired and remote workers and expansion of the 10-year golden visa programme have boosted foreign investment flows into the Emirates' property market over the past few years.
The robust momentum in the UAE’s economy – the Arab world's second largest – driven by the government's diversification efforts has also supported market activity.
Aldar will continue to ensure more affordable housing options to cater to a growing population in the UAE, chief finance and sustainability officer Faisal Falaknaz previously told The National.
The company is expected to report its third-quarter results this week.
