Arada’s foray into Australia’s real estate market amidst a housing crisis

UAE-based developer Arada has unveiled plans to expand into international markets, with its first foray being Australia.

The master developer has set up a new office in Sydney, and is planning multiple projects in Australia’s most populous city, according to its press release.

It added that the extended pipeline of projects, valued at Dhs6bn, targets urban renewal while addressing the current housing shortage in Sydney.

Australia’s housing crisis

Australia is suffering from a housing supply crisis that is driving up rents and house prices. Research shows that the supply of new homes in Australia is falling far behind other developed countries.

It currently ranks 23 out of 33 developed countries for the number of dwellings per 1000 people, according to figures from the Organisation for Economic Co-operation and Development (OECD).

Australia’s federal government noted in its 2024 budget that the country is suffering from “historic underinvestment” in housing that’s created a significant supply shortage.

“Australia’s housing system has been unable to build enough new housing stock to keep up with the needs of our population,” it warns.

“This has caused a growing supply deficit, resulting in worsening affordability for both renters and first-home buyers.”

The Sydney project

The Sydney project encompasses the construction of 2,500 homes which is scheduled to begin in 2025. With significant land holdings, the sites will deliver extensive commercial and retail components, providing significant employment opportunities in the local community.

To combat the housing shortage issue, Arada promises to deliver high-quality, diverse housing options that offer innovative facilities and amenities. 

The developments will feature premium amenities including green spaces, retail outlets and Arada’s own fitness and wellbeing offering, Wellfit, which focuses on providing active, healthy living for the whole family via state-of-the-art facilities, as per the release.

The real estate developer said that it is partnering up with Australia-based architectural firm Woods Bagot for the mixed-use development. The firm has in its portfolio of designs multiple projects in the Middle East such as the Qatar Science and Technology Park located in Doha, the IRENA Headquarters in Masdar City, Abu Dhabi, and Kempinski Hotel Muscat in Oman.

Additionally, it is looking at expanding into the market down under as it has an in-house expert through its Australian-born group chief executive officer – Ahmed Alkhoshaibi.

Alkhoshaibi will spearhead the Australian operations and business growth.

Alkhoshaibi commented, “Launching in Australia marks a pivotal moment for Arada as we continue to realise our vision of integrated residential communities that help people lead happier, healthier and more meaningful lives.

“Arada is passionate about delivering activated precincts that deliver a community-based approach to housing supply. Our initial projects in Sydney are strategically located within growth corridors, aligning with local government initiatives to expand housing near transport hubs and minimising strain on existing infrastructure.

Arada is announcing its first expansion outside the UAE into the high-demand Australian property market. With a mission to transform communities in need of urban renewal, we have set up an office in Pyrmont, Sydney, and have an extended project pipeline valued at AED6 billion… pic.twitter.com/wjA0VE0yus

— Arada (@AradaLiving) August 15, 2024

UAE footprint

Since its launch in 2017, Arada has launched six successful projects in both Sharjah and Dubai, with a combined sales value of Dhs60bn. These include Sharjah’s largest ever mixed-use megaproject, Aljada; the UAE’s first forested community, Masaar; and the ultra-luxury Armani Beach Residences at Palm Jumeirah.

In 2023, the master developer announced a 100 per cent increase in the total value of property sold to Dhs7.02bn, compared to the previous year. 

“With a strong financial position, an impressive track record and a dedicated local team, we are poised to make a positive impact on our future residents and the communities we serve,” added Alkhoshaibi.

In total, Arada has sold 14,000 units since inception, valued at over Dhs17bn, with over 9,000 units completed.

Read: Sharjah’s Arada awards Dhs615m contracts for 565 housing units