The merger between Nakheel and Meydan, two of Dubai’s largest developers, under the Dubai Holding umbrella will enhance efficiency and better position the companies to capitalize on the booming real estate market in the emirate, property experts have noted.
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| Dubai Real Estate Giants Nakheel and Meydan Merge Under Dubai Holding to Capitalize on Market Boom |
The Dubai Holding conglomerate, owned by the Dubai government, also includes Jumeirah Group, Dubai Properties, and Tecom Group.
Simon Baker, managing director of Dubai real estate agency haus & haus, told The National, "As the emirate’s real estate market continues to expand and mature, merging these large businesses under Dubai Holding is a smart move. It will enable them to consolidate resources, increase market share, and capitalize on synergies to exploit the current high demand."
Dubai’s property market has rebounded strongly from the pandemic slowdown due to government measures and higher oil prices.
In 2023, Dubai recorded a 17 percent annual increase in real estate transactions, reaching 1.6 million across various market segments, according to the Dubai Land Department. This was up from approximately 1.3 million transactions in 2022 and included investments, mortgages, sales transactions, and rental contracts.
Experts suggest the merger may also lead to improved quality and streamlined delivery of master projects citywide. Mark Richards, managing director at Luxury Property, told The National that the addition of Meraas to Dubai Holding in 2020 had positive effects on project quality and delivery. Projects like Bluewaters Island and Madinat Jumeirah Living have become highly popular, with excellent amenities complementing the residential units.
Nakheel’s master developments cover 15,000 hectares, including iconic projects such as The Palm Jumeirah, The World Islands, and several Jumeirah developments. Nakheel also owns diverse retail and hospitality projects, including The St Regis Dubai, The Palm, and Premier Inn Ibn Battuta Mall.
Meydan Group’s portfolio includes the Meydan Racecourse and real estate projects like Mohammed bin Rashid City. Richards noted that the consolidation of land banks from individual developers would provide more opportunities to deliver well-planned master communities and scale up infrastructure easily, enhancing global competitiveness.
Dubai's prime residential market is poised for robust growth this year, driven by supply constraints and renewed demand from key markets such as China and India. Knight Frank predicts property prices in prime markets like The Palm Jumeirah, Emirates Hills, and Jumeirah Bay will rise by 5 percent in 2024.
The Nakheel-Meydan merger is expected to support the Dubai Economic Agenda D33 plan, launched last year, which aims to double Dubai’s economy to Dh32 trillion ($8.713 trillion) by 2033 and establish the emirate among the top three global cities.
The merger aligns with Dubai’s Urban 2040 plan, aimed at revitalizing key urban areas, said Prathyusha Gurrapu, head of research and consultancy at Cushman and Wakefield. It supports Dubai’s vision of being a leading global property market by creating holistic and competitive real estate offerings under Dubai Holding's governance.
The announcement comes as Emaar Properties, Dubai's largest listed developer, experiences increased property sales in the UAE and expands into new markets. Emaar reported a 70 percent annual jump in 2023 net profit, driven by growth in tourism, retail sales, and rising real estate demand.
The UAE’s real estate market is projected to reach $710 billion by the end of this year, with the residential sector accounting for about $410 billion, according to Statista. Globally, the biggest housing markets are in the US, China, India, Germany, and Japan, with China's residential property transactions estimated at $113.5 trillion in 2023, projected to rise to $132.8 trillion by 2028.
Published on Dubaitowa.