Beyond The News : Issue 3

Trendwatch: Dubai Commercial Real Estate

Demand for commercial space in Dubai continues to rise based on data collected from 626 properties[BG1]? across the emirate. Occupancy rates reached 88.7% in the first half of 2024, up from 85.9% at the end of 2023. The strength of demand, particularly for well-located Grade A stock, provides a significant opportunity for new commercial space in the emirate.

We recently announced our entry into the Dubai market with the development of an iconic Grade A office tower on Sheikh Zayed Road, right by the Dubai International Finance Centre (DIFC). The tower will feature a net leasable area (NLA) of 88,000 sqm, including a luxury boutique hotel and branded residences along with the high quality, best-in-class office space.

Additionally, we have signed an agreement to acquire ‘6 Falak’, a newly built Grade A office building that is one of the highest quality assets in Dubai Internet City (DIC), from Sweid & Sweid. One of the last freehold plots in the area, the fully occupied property is currently home to a number of blue-chip tenants such as Roland Beger, Merck, and IFS.

Exceptional sales performance of new launches in Dubai and Abu Dhabi

Our recent launches, Verdes by Haven and The Arthouse, have demonstrated exceptional demand and buyer enthusiasm, achieving more than AED 2 billion in sales.

Located within the Haven by Aldar masterplan, Verdes by Haven sold over 660 units, garnering significant interest from overseas buyers and expatriate residents, who account for 83% of total sales. The top three international buyer nationalities were from India, Egypt, and the United Kingdom. Buyers were attracted by the resort-like setting of the community, which blends nature and wellness with contemporary living.

The Arthouse, a unique residential concept in the heart of Saadiyat Cultural District overlooking the Guggenheim Abu Dhabi and the Arabian Gulf, has received a fantastic response from customers with the highest demand coming from the UAE, Russia, and the United Kingdom.

Expanding Dubai's logistics infrastructure with DP World

Knight Frank's 2023 biannual Dubai and Abu Dhabi Industrial Markets Review report reveals that in Dubai, demand for warehouse space now surpasses supply, with tenants prioritising ?premium, high-quality warehousing meeting internationally recognised standards. This represents a departure from historical trends which were more cost focused.

To help satisfy that demand, we have signed an agreement with DP World that will see Aldar fund and develop a new 144,000 square metre Grade-A logistics park at National Industries Park in Dubai. Located near Jebel Ali Port and Al Maktoum International Airport, this park is designed to meet the increasing warehousing demands of third-party logistics (3PL), e-commerce, and retail companies.

This project is part of our AED 1 billion investment to expand our logistics real estate portfolio in Abu Dhabi and Dubai, with further investments planned in the future.?

Setting new benchmarks for sustainable living

Athlon, our second residential development in Dubai, has achieved the UAE’s first LEED for Communities Plan and Design Platinum certification. Dubai’s first active living concept is being developed with an emphasis on low-carbon design principles, with features such as energy-efficient and water-saving fixtures, electric vehicle charging points and smart waste disposal systems.

Additionally, The Sustainable City – Yas Island has been awarded an Estidama 5-Pearl rating, which is the highest rating under the Estidama programme developed by the Abu Dhabi Urban Planning Council to encourage the adoption of sustainable design principles. This project will feature water conservation initiatives and solar panels on residential and parking structures with residents able to save up to 50% on energy bills.

In a significant step towards our Net Zero Plan, we are actively supporting the National Green Certificates Program under the UAE’s Ministry of Energy and Infrastructure, which will further strengthen sustainable practices across our developments.

Empowering our communities through sports and education

As part of our commitment to improving the health and wellbeing of the communities we serve, we have recently partnered with the UAE Jiu-Jitsu Federation to sponsor the 'Khaled bin Mohamed bin Zayed Jiu-Jitsu Championship,' the largest jiu-jitsu event in the UAE.?

Our support includes organising community events at our residential communities, schools, and shopping malls throughout the championship season, promoting the sport and encouraging community involvement.

Celebrating outstanding young talent

We are proud of Amna, who won the creative writing competition organised by Aldar Academies. Amna is an 11-year-old student at Sas Al Nakhl ADNOC School, an Aldar Education operated school.?

From childhood, Amna has loved writing, reciting, and presenting, and she now lends her voice on the Environmental Affairs and Sustainability Committee as a Member of the UAE Children’s Parliament. Amna dreams of being an ambassador in the field of environmental sustainability in her community, perfectly embodying the Aldar purpose of positively impacting all areas we are involved in.?

We are proud to share Amna’s story, one of the many students that Aldar nurtures and supports towards realizing their dreams.?

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Defining our culture to support Aldar’s growth

Following the unveiling of our redefined values, we have launched our new Culture Playbook, which provides our employees with a curated guide on how we can embody these values and support each other to achieve our purpose: To have a positive impact on people’s lives.

The Culture Playbook celebrates the culture we aspire to have at Aldar and reminds us that it is a collective journey and shared responsibility. ?

After an energised launch at our Aldar Square home, we took our Culture Playbook on the road, to engage in open dialogue about workplace culture with employees from our Dubai Sales Centre, which opened earlier this year on Jumeriah Beach Road.