Dubai developers will do just as well 'renting' too: Deyaar CEO

Deyaar Al Qatami talks about launches in Umm Al Quwain and Abu Dhabi

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Manoj Nair, Business Editor
2 MIN READ
Deyaar's got itself a busy portfolio with recent launches in Abu Dhabi and Umm AL Quwain. And there's going to be another big one in Dubai soon, based on market buzz.
Deyaar's got itself a busy portfolio with recent launches in Abu Dhabi and Umm AL Quwain. And there's going to be another big one in Dubai soon, based on market buzz.
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Dubai: Leading developers in Dubai are learning that it’s not only about building new homes to sell – even renting them out directly is good for their numbers.

Deyaar’s Saeed Mohammed Al Qatami sure has such plans. “Our current rental portfolio is almost entirely made up of commercial real estate, at around Dh2.5 billion to Dh2.6 billion,” he added.

“Now, our plan is to create a residential rental portfolio and take our overall rental income to Dh3 billion.

"There’s good growth for developers from retaining properties for the rental market. It needn't always be about selling everything you build.”

Dubai Residential REIT

The business model of Dubai Residential REIT – which completed a successful IPO and listing on DFM - will be a benchmark that other developers in Dubai and UAE can use. The REIT has more than 30,000 rental properties in over 20 popular locations in Dubai, including Palm Jumeirah. Together, they contribute a substantial rental income in a market that’s still seeing steady rental growth rates.

“Our focus had been in launching residential projects to sell, where we would retain some of the retail space,” said Al Qatami. “But in a market like Dubai’s, where there is more rental growth forecast, developers will do well in setting aside some residential units for steady rental income.

“We will do that by creating that portfolio mix.”    

Abu Dhabi, Umm Al Quwain launches

Deyaar is coming off some fairly solid results of late, helped by an astute bit of financial restructuring that saw it get rid of legacy losses. It’s an operationally and financially sound company that has in the recent past taken on new projects in Abu Dhabi (the Rivage on Reem Island) and Umm Al Quwain (Aya Beachfront Residences).

These are the developer's first ventures outside of Dubai.

“We haven’t started recognizing sales from the Abu Dhabi or UAQ launches,” said Al Qatami. “That’s going to start later this year and early next. Deyaar has always been conservative in how we book the sales in our results.

“Our project in Umm Al Quwain will see us start construction at the earliest – the site does not require much by way of dredging or reclamation. That’s typically where the costs start to build up even before the construction. In our case, it doesn’t.”

Solid on Q1-25 numbers

On the financials, Deyaar closed Q1-25 with Dh119.82 million against Dh77.54 million, with new launches in Dubai helping. Of course, there was also the rents generated by its office and retail assets.

And soon, there will be another eye-catching launch in Dubai.

Manoj Nair
Manoj NairBusiness Editor
Manoj Nair, the Gulf News Business Editor, is an expert on property and gold in the UAE and wider region, and these days he is also keeping an eye on stocks as well. Manoj cares a lot for luxury brands and what make them tick, as well as keep close watch on whatever changes the retail industry goes through, whether on the grand scale or incremental. He’s been with Gulf News for 30 years, having started as a Business Reporter. When not into financial journalism, Manoj prefers to see as much of 1950s-1980s Bollywood movies. He reckons the combo is as exciting as it gets, though many will vehemently disagree.
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