Omniyat to Double Portfolio to $27 Billion Amid Dubai Property Boom
Dubai luxury developer Omniyat plans to significantly increase its investment, aiming to more than double the value of its property portfolio to AED 100 billion ($27.3 billion) over the next five years. This move seeks to capitalize on the sustained demand in the UAE real estate market.
Ambitious Growth Plans
Omniyat aims to expand its asset base from the current AED 40 billion. Chairman and CEO Mahdi Amjad revealed that at least half of the AED 100 billion target will be accounted for by its ultra-luxury properties. New companies launched under Omniyat’s revamped corporate structure will invest across the real estate value chain, including residential, commercial, and hospitality projects in the UAE and the broader GCC region, contributing to the remaining AED 50 billion.
Upcoming Ultra-Luxury Projects
The company plans to launch two new ultra-luxury projects in Dubai this year, with a combined value of AED 10 billion. “I truly believe that there is intrinsic growth potential that’s going to come over the next five to 10 years in the ultra-luxury segment,” said Mr. Amjad, expressing confidence in the sector’s future.
Market Resilience and Growth
Omniyat is among the latest developers in the UAE rushing to launch new projects to leverage the robust growth in the real estate market since the strong recovery from the COVID-19 slowdown in 2020. Despite global economic challenges and regional geopolitical turbulence, the luxury and ultra-luxury segments have seen a sharp rise over the past two years.
Record High-Value Transactions
Dubai alone recorded 948 sales in the luxury property segment, each valued at AED 15 million or more, during the first five months of 2024, according to a report by Betterhomes. These transactions were concentrated in areas such as Palm Jumeirah, Mohammed bin Rashid City, Dubai Water Canal, Tilal Al Ghaf, and Dubai Hills Estate. The ultra-luxury segment has also seen record transactions, including a AED 165.6 million sale at Ritz Carlton Residences by MAG and a AED 140.5 million sale in Meraas’ Bulgari Lighthouse.
Competitive Landscape
Omniyat, founded in 2005, recently sold a penthouse at its latest project, The Lana Residences, Dorchester Collection, for AED 139 million. The announcement of two new ultra-luxury projects follows last year’s launch of Orla Infinity, part of the $2 billion Orla collection at Palm Jumeirah. Other UAE developers, including Emaar Properties, have also announced plans to tap into the growing luxury market. Emaar’s projects, The Heights Country Club and Grand Club Resort, are valued at a combined AED 96 billion.
Strong Future Prospects
Mr. Amjad highlighted the significant growth potential in Dubai’s real estate market compared to other global cities. Despite substantial growth in recent years, Dubai’s real estate prices remain a fraction of those in cities like Hong Kong, Singapore, New York, Paris, and London. Government policies to attract global talent and a growing population of millionaires further support the ultra-luxury segment.
A Magnet for Millionaires
A record 6,700 millionaires are expected to move to the UAE by the end of this year, according to Henley & Partners, making the UAE the top destination for the wealthy for the third consecutive year. Dubai’s prime market hit a record last year, with sales of $10 million-plus homes nearly doubling to $7.6 billion, outperforming London and New York. Prices for these homes in Dubai also grew at one of the fastest rates globally, increasing by 26% last year.
“Dubai is the number-one city in the world where ultra-luxury is getting sold, and the millionaires of the world are moving to,” said Mr. Amjad, highlighting the emirate’s growing appeal.
