Indialand buys more office space after Burj Daman floor deal

Dubai: The deals keep on happening in Dubai’s office real estate.

Just days after buying an office tower in full, an investor has acquired 45,000 square feet of office space at the upscale Burj Daman high-rise in DIFC.

“The ease of operations in Dubai allows me to do acquisitions at a much faster pace,” said Harish Fabiani, founder of Indialand Group, which already has land and a commercial real estate portfolio valued at over $500 million in India.   

Fabiani is definitely picking up the speed in Dubai. He bought the Thuraya Telecommunications Tower in Barsha for Dh160 million and will spend a further Dh40 million on upgrades. The tower is located near the Dubai Internet City Metro Station and has 143,000 square feet of office and retail space.

Then, there was the buy of the 45,000 square feet of leased office space in Burj Daman, an address that has built quite a profile within the DIFC district.

“With these acquisitions, the indicative valuation of our real estate holdings increases by an estimated Dh250 million,” said Fabiani. “The Burj Daman space alone is set to generate an annual rental income of Dh20 million, significantly enhancing the overall revenue potential of the portfolio.”

Suppose prime Dubai residential property deals were making waves since 2021. In that case, the impression among real estate industry sources is that Dubai offices too are ‘rich with opportunities’. “Look at any Grade A office building, and it will easily have an occupancy pushing past 90%,” said a senior manager at an investment house.

“When you have so many in the waiting list looking to book an office in Dubai, no investor will want to miss out.”

Until now, the big government-owned entities were leading the way. The Tecom Group has been adding to its portfolio by buying out assets from others, most notably from the operator of the Emirates REIT fund. The deal value for the office cluster in Dubai Internet City was $196 million.

Aldar of Abu Dhabi has also found serious traction in Dubai’s office and commercial real estate. The most recent - and eye-catching - was the Dh2.3 billion buy of an under-development commercial tower in DIFC from H&H.

“This acquisition not only diversifies our commercial portfolio but also responds to the sustained demand for high-quality office spaces,” said Talal Al Dhiyebi, Group CEO at Aldar, at the time of the announcement in early December.

Fabiani shares that thought - “I also have other commercial holdings in Dubai, mostly leased and some leases to get over in the next 12 months. “So, (those) rents will increase substantially over the next year, so we will not miss out on incremental rentals that the Dubai office market is witnessing.

“Plus, we are lowly levered on debt, mostly (doing the new purchases) via equity.”

Industry sources say more deals for office towers or floors will keep happening. “There are so many investors willing to pay top dollar for leased commercial real estate in Dubai,” said a developer. “At some point, owners will be compelled to just pick up that offer.”