Sharjah developer Arada is planning to launch new projects in the UAE this year despite market uncertainties related to the Iran war, the company's chief executive has said.
New projects will be unveiled in Dubai and Ras Al Khaimah, Ahmed Alkhoshaibi told The National. “We have a downtown plot, which we would launch by the end of the year. We have another plot which I can't mention, we’ll be announcing soon, which we bought during the [Iran] war,” Mr Alkhoshaibi told The National in an interview.
Arada is a joint venture between KBW Investments, a company controlled by Saudi billionaire businessman Prince Khaled bin Alwaleed, and Sharjah-based Basma Group.
The company is also planning a project in Ras Al Khaimah by the end of 2026 or early next year, as well as new schemes in its master developments in Sharjah, including Aljada and Masaar, which are being built in phases.
“I think in total we have probably about six launches by the end of the year,” Mr Alkhoshaibi said. However, new projects will be started depending on the market situation, he added, without providing details on the total value of those in the pipeline.
The UAE's property market, which was buoyant at the start of the year, has largely weathered the immediate fallout from the Iran war. In the first quarter of the year, the value of Dubai's real estate transactions surged by nearly a third, underpinned by an influx of new investors and rising interest in luxury properties.
Transactions in the three months to the end of March hit Dh252 billion ($68.61 billion), a 31 per cent annual increase, Dubai Media Office said this month, referring to data from the Dubai Land Department (DLD).
A total of 60,303 property transactions were signed, a 6 per cent year-on-year rise, and part of 718,160 deals recorded during the quarter, the DLD said.
In the first quarter of the year, Dubai’s residential market remained up on an annual basis, with the ValuStrat Price Index rising 8.9 per cent year-on-year, although it recorded its first quarterly decline since the pandemic, falling 3.8 per cent, driven largely by a sharp 5.9 per cent drop in March after the outbreak of the Iran war, and launch of missile and drone strikes on the UAE and other countries in the region.
“I don't think there'll be a growth in price rates, but there'll be a growth in demand, meaning that there'll be sales,” he told The National. I think we're going to plateau when it comes to prices … we definitely plateaued already.”
Arada aims to achieve Dh7 billion in sales this year, down from Dh17 billion recorded by the company last year but up from Dh4 billion and Dh6 billion in 2023 and 2024, respectively, Mr Alkhoshaibi said.
Market to bounce back
The market “will start growing again. I think the fundamentals are there, with underlying demand for homes and to live in the UAE.”
The way the government has handled the situation, ensuring the safety of its people and availability food security and fuel will continue to attract investors and support the market, he added.
“I am confident that after every crisis, the government comes out even stronger. We've seen it in previous crises like the Covid pandemic.”
The company is aiming for Dh9 billion in revenue this year, up about 25 per cent from last year, as it plans to deliver 4,000 homes this year from its previously launched projects, as well as revenue coming from other businesses, including in the fitness, hospitality, and food and beverage segments, as well as newly acquired Reem Hospital in Abu Dhabi.
Last week, Arada bought a majority stake in Abu Dhabi's Reem Hospital as part of the master developer’s Dh2 billion commitment to expand its hospital portfolio across the UAE.
As part of the strategy, Reem Hospital's existing Reem Island facility will be doubled in capacity to 200 beds, with new speciality areas introduced to serve patients.
Three further hospitals are also planned across Abu Dhabi, Dubai and Sharjah, while a network of Reem Clinics will be established across the UAE, including within Arada's own master-planned communities, it said earlier.
The company also aims to sell its first project in Australia this year. It plans to develop Dh6 billion worth of projects in Sydney, it said previously.
