Family group to invest Dh300m in Dubai property projects

Dubai-based diversified group Mostafa bin Abdullatif Holding is expanding its real estate portfolio by investing Dh300 million in new projects in the emirate, its chief executive officer said.

Hamdan Ali Mostafa said the group will be investing in three residential and one commercial project this year.

“We are expanding real estate business with four real estate projects coming up in Dubai. In the next three years, we will be investing roughly Dh300m in the projects. Some are for the rental market and some as freehold market. They’ll be announced in the next 6 months,” Mostafa told Emirates 24l7.

Apart from real estate, the family-owned group has interests in retail, trading, IT, securities, manufacturing, hospitality and facilities management.

Mostafa shrugged off recent reports about Dubai property prices reaching their 2008 peak, saying there is still room for growth in the emirate’s property market and chance to make money.

“The rental market is doing good, demand is there, the supply is growing; as Dubai grows following Expo 2020, there will be need of more supply, so I do believe there is a good prospects for the emirate’s property market. The prices haven’t reached peak as yet,” he added.

Business Monitor International said earlier that the real estate sector in the UAE will continue its post-crisis recovery in 2014, due to strong demand and continued construction. It also predicted rental rate increases in all three major emirates, with the exception of a slight contraction in office and industrial rental rates in Abu Dhabi.

He said the group is also looking at investing in Abu Dhabi. “We are looking at different investments in Abu Dhabi but nothing has been finalised yet. These (4 real estate) projects are finalised for this year but as new opportunity arises in real estate and trading, we’ll go for them,” Mostafa added.

The group is also expanding its retail and trading subsidiaries. It recently acquired franchise of Atom and Libratone under its retail umbrella to cater hospitality sector.

 

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