UAE-based hospitality firm The H Holding Enterprise has announced that it has diversified into the property business through the launch of Omega Real Estate, a new company specialising in property development and asset management in the Middle East.
The newly launched firm is aiming to establish a real estate portfolio of Dhs500 million by the end of this year, chairman Hafeez Abudullah said.
“We strongly believe that real estate will remain the hottest investment in the UAE for the coming decade, and that is why we decided to invest in this new venture.
“Real estate is widely regarded as a sound investment, especially by people with easy liquidity. We foresee increased regional demand for UAE realty as the understanding and knowledge attained over years by investors go hand in hand with the expertise of the real estate developers and the regulatory measures of the Dubai Land Department (DLD).”
He added that more regional and international investments will fuel the growth of the UAE’s real estate market in the future.
Omega Real Estate’s launch comes at a time when Dubai’s property price growth is slowing down after surging more than 40 per cent over the last two years.
According to the latest report by consultants JLL, residential rents grew 15 per cent in 2014 while prices rose 20 per cent.
The report further said that home prices in the emirate are likely to be subdued in the next 12 months as the market is expected to see a supply of 25,000 units.
But a slowdown in price growth has not dampened the property market.
Recently, Danube Real Estate said that it sold out all units in its second Dubai project Glitz within a day, signaling strong investor interest in the project.
Meanwhile, Dubai developer Nakheel announced that it has signed a joint venture agreement with German real estate brokerage firm Engel & Völkers to form a new company specialising in selling and leasing properties across Dubai.
Through the deal Nakheel will be able to market its properties through Engel & Völkers’ 600 offices, spread across 38 countries while benefiting from wider international exposure.