Brookfield Asset Management and Lunate have embarked on an ambitious venture, forming a joint project to invest $1 billion in residential property in the Middle East. This collaboration is poised to tap into the growing demand for housing across the region, driven by a robust economic landscape and an influx of wealth. The venture will focus on residential real estate across the UAE, Saudi Arabia, and other regional markets, targeting both build-to-sell and buy-to-sell assets.
Strategic Investments in Growing Markets
The joint venture between Brookfield and Lunate will not only aim to acquire residential properties but also establish a dedicated team to manage and develop its investments. By focusing on markets with significant population growth and strong economic indicators, the venture seeks to maximize its opportunities in this burgeoning real estate sector.
Recent statistics reveal that residential property values in key focus areas such as Dubai and Abu Dhabi have surged, increasing by 18.0 percent and 11.1 percent, respectively, in 2024. Expectations for continued growth into 2025 signal a favorable environment for investment in residential properties, making the collaboration between Brookfield and Lunate particularly timely.
Expertise and Market Insight
Khalifa Al Suwaidi, Managing Partner at Lunate, emphasized the significance of this partnership, stating, “Our partnership with Brookfield is a strong demonstration of our ability to provide our clients access to compelling investment opportunities by joining forces with experienced investment managers.” He noted Brookfield’s unparalleled expertise in real estate and investment, highlighting their success in delivering notable developments both regionally and globally. The joint venture is set to leverage this experience to capitalize on the burgeoning demand for residential real estate in the Middle East.
Furthermore, the announcement reflects the UAE’s emerging status as a prime destination for wealthy migrants in 2024, a demographic development that is expected to further stimulate demand for high-quality residential properties.
Competitive Pricing and Future Prospects
Another crucial aspect noted by the partners is the competitive nature of property prices in the Middle East compared to other global cities. This affordability presents a lucrative opportunity for investors, enhancing the appeal of the joint venture. Jad Ellawn, Managing Partner and Regional Head, Middle East at Brookfield, remarked, “Our joint venture with Lunate is significant as we expand into the high-quality residential real estate sector.” By combining their operational expertise with deep experience in real estate development and management, the partners aim to deliver top-tier residential assets to meet the needs of a growing population.
The collaboration builds on Lunate’s recent acquisition of a 24.5 percent equity interest in ICD Brookfield Place, a notable commercial and retail property situated in the Dubai International Financial Centre. This previous investment underscores Lunate’s commitment to expanding its portfolio alongside Brookfield, which currently manages approximately $15 billion in assets across various sectors, including private equity, real estate, and infrastructure throughout the Middle East.