Dear squared: Institutional investors are stepping up interest in real estate in the UAE

Dubai is experiencing a new wave of institutional interest: over the past four years, the value of real estate in the emirate has increased by 70%, and large Western and Asian funds are eyeing the market amid growing demand in the segment of profitable assets.

Global institutional investors are gaining a foothold with a long planning horizon: American, Singaporean, Indian funds and banks are operating in sectors they understand and understand, focusing on managed assets with capital protection and increasing their local presence. The region is perceived as part of a global portfolio, not as a speculative bet. The strategies are designed for 10+ years with a high level of participation.

The content of the article

1. Brookfield: to Dubai for stability
2. Mapletree: MENA as a risk management tool
3. Rava Partners: the first step in MENA through social infrastructure
4. Sunset Hospitality: Local players are betting on luxury
5. The main barrier is the shortage of liquid assets
6. The main thing

Brookfield: to Dubai for stability

Canadian Brookfield Corp. He is considering the possibility of launching a mixed-format development project in the Dubai Hills area. If the deal goes through, it will be the company’s first investment in housing in the emirate — and another step towards deepening its local presence.

Brookfield is no stranger to the market: partnering with Investment Corp. they have already implemented the ICD Brookfield Place flagship office tower. Today it is one of the most expensive rental properties in DIFC and a key asset in their regional portfolio.

What is important:

• Brookfield sees Dubai and Riyadh as “global cities” with an investment horizon of 10+ years.
• The company’s approach remains conservative, focusing on profitability, sustainability, and asset quality. Developer risk is minimized, and priority is given to “core assets” that can withstand market cycles.
• Dubai is officially included in the global Brookfield real estate pool along with New York, London and Toronto. The company’s offices in DIFC are part of the core, which is held for a long time.

ICD Brookfield Place remains the main regional point of attraction: 1 million square meters. thousands of feet of office space, demand from international investment-grade tenants, and Brookfield’s own office on the 24th floor.

The tower is one of the few assets in Dubai that can be described as “non-reproducible” in terms of quality, scale and location.

Mapletree: MENA as a risk management tool

Singapore-based Mapletree Investments, controlled by Temasek, enters the MENA market with a clear goal — to balance the portfolio and expand access to large institutional capital. A new office in Abu Dhabi has already been opened, and investments in the region may reach $ 2 billion.

The context:

After two decades of steady growth, the company recorded its first loss amid a revaluation of assets in the United States, Europe and Australia. In 2024, these regions accounted for more than 40% of its global portfolio (77.5 billion Singapore dollars). Entering the UAE is a tool for managing volatility and strengthening positions in a jurisdiction with high liquidity and minimal shocks.

What is important:

• Mapletree relies on regional sovereign wealth funds with total assets of over $1.5 trillion to scale its platform.
• The company is building up the private capital management team at MENA: the goal is to build a dense network of institutional connections and lay the foundation for sustainable growth of AUM to 100-120 billion Singapore dollars over a five—year horizon.
• The return of Khairul Abdullah (ex-Aldar, formerly VP at Mapletree) and the launch of an office in Abu Dhabi are perceived as preparations for an extensive expansion of the regional presence.

When traditional markets lose stability, access to regional capital with a long mandate and low correlation with Western cycles, according to Mapletree, is not an alternative, but a necessity.

Rava Partners: the first step in MENA through social infrastructure

Hillhouse’s real assets investment arm, Rava Partners— is entering the Middle East market through a deal in the field of socially significant assets. The company acquired the Hartland International School (HIS) building in Dubai from NBK Capital Partners Real Estate Fund for $100 million. The transaction was conducted through the Real Asset Opportunities Fund I in partnership with Alta Capital, Rava’s exclusive operating partner in educational assets.

The context:

This is the first international project of the Elevate platform, created by Rava and Alta in 2023. In India, it already manages more than 30 K-12 and student housing facilities with a combined AUM of $1 billion. Now the focus is on the UAE, where population growth, demand from expats and government support for the sector make the education market one of the most predictable growth points over a 10—year horizon.

What is important:

• HIS is over 2,000 students from 100+ countries, building on 9 acres of freehold in Mohammed Bin Rashid City, long—term lease with Meraki Education.
• Authorities estimate that Dubai will need up to 100 new schools in the next 10 years as institutional demand for educational real estate continues to grow.
• The deal is perceived as a start — in the next cycle, Rava plans to expand into other socially significant asset classes: logistics, data centers, biotechnologies and production infrastructure.

For global platforms focused on sustainable capital inflows, Dubai real estate is a window into a demographically charged, predictable and infrastructurally mature market.

Sunset Hospitality: Local players bet on luxury

Sunset Hospitality Group, known for its Sushisamba and METT Hotels & Resorts brands, initiated the raising of $300 million in 2024 to scale its international portfolio. Jefferies structures the process, and according to Bloomberg, the format with an anchor institutional investor is preferred, but the team is open to flexible partnerships.

The context:

In April 2024, Goldman Sachs invested $25 million in Sunset to expand its hotel business. This is not an isolated case: similar deals are being recorded throughout the premium segment – Ennismore (part of Accor) is actively looking for investors to expand into the United States, and the Saudi PIF acquired a stake in Rocco Forte Hotels at the end of 2023.

What is important:

• Sunset already operates 64+ establishments in 17 countries, including landmark projects like Aura Skypool and upscale night-life concepts.
• The company is focused on the HNW and UHNW segment — it is this consumer that generates demand in Dubai and Abu Dhabi.
• Crypto funds, Asian investment bankers, and wealthy people from the CIS are moving to the region — the demand for premium hospitality is becoming systemic rather than seasonal.

The main barrier is the shortage of liquid assets

Despite sustained interest from global institutional investors, Dubai’s lucrative real estate market remains limited in terms of supply. Most of the high-quality assets are still owned by local family offices and parastatal structures that are not inclined to sell. As a result, many players are forced to enter development cycles “from scratch”, which requires greater involvement and a planning horizon.

On the other hand, 10 years ago Dubai was perceived as a risky market: recession, abandoned construction sites, media images of abandoned supercars at the airport. Today, it is one of the most active markets, with record deals in the prime segment, an increase in tourist flow and business activity, flexible tax residency and a soft visa policy. The flow of capital from the USA, Europe and Asia has become systemic.

The main thing

• Over the past four years, real estate prices in Dubai have increased by about 70%, which has stimulated institutional interest from Western funds.
• Global funds and banks are gaining a foothold in the region with a 10+ year horizon, working in sectors they are familiar with, from schools to offices. The focus is on managed assets, capital protection, and local presence. Dubai and Abu Dhabi are becoming part of the global portfolio, rather than a point for speculative growth.
• Investor strategies are shifting from speculative models to long-term capital management with an emphasis on protection from market cycles.
• Brookfield, Mapletree and Hillhouse (Rava Partners) are stepping up investment activity in the premium, income and socially significant real estate segments in the UAE.
• The key challenges of the market are the limited supply and high share of real estate in the hands of local near—state and state players.

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