Abu Dhabi-based alternative investment firm Lunate and global asset management giant Brookfield Asset Management have joined forces to launch a $1 billion residential real estate venture. This joint venture will focus on residential assets across the UAE, Saudi Arabia, and other Middle Eastern markets, signalling strong investment interest in the region’s real estate sector.
Abu Dhabi a Strategic Partnership for Expansion
The new venture will invest in build-to-sell residential properties, capitalizing on growing demand across the Middle East. Lunate, which currently manages over $110 billion in assets, has confirmed its commitment to making a significant cornerstone investment in the project. The firm will also use its extensive regional network to support the commercialisation and fundraising efforts of the joint venture.
While the exact financial details of the investment remain undisclosed, the collaboration aims to tap into the growing residential property market in key Middle Eastern cities like Dubai and Abu Dhabi. These cities are expected to serve as the primary focus markets for the joint venture’s investments.
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Focus on the UAE’s Thriving Real Estate Market
The announcement of the joint venture comes shortly after Lunate’s acquisition of a 24.5% equity interest in ICD Brookfield Place, a premium commercial and retail property located in the prestigious Dubai International Financial Centre (DIFC). This acquisition, which took place in March 2024, marks a significant step in Lunate’s expansion strategy within the UAE’s real estate sector.
Dubai and Abu Dhabi, as major financial hubs, are expected to be the primary locations for the residential investments under this new joint venture. The UAE’s residential market is experiencing strong growth, with real estate services firm Savills reporting impressive transaction activity in the first quarter of 2025. According to Savills, Dubai saw a 23% increase in property transactions year-on-year, largely driven by a surge in apartment sales.
Middle East Continues to Attract High Net-Worth Individuals
The region’s growing appeal is further underlined by the findings of Savills’ ‘Dynamic Wealth Indices.’ According to the real estate consultancy’s, both Dubai and Abu Dhabi were ranked as the top destinations. High net-worth individuals (HNWIs) and mobile companies looking for a location. These cities continue to attract investors, offering a combination of attractive business environments, luxury lifestyles, and high-quality residential options.
As part of the joint venture, Lunate and Brookfield aim to take advantage of these favorable market conditions, with a strategic focus on the UAE’s cities and other key markets in the region. By tapping into these trends, the partnership hopes to capitalize on the increasing demand for high-quality residential properties that cater to the growing affluent population.
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Real Estate Sector Poised for Growth
The joint venture comes at a time when the UAE’s real estate market is seeing a resurgence. Particularly in residential property sectors. Dubai’s strong year-on-year growth in transaction volumes signals a robust demand for housing, particularly for apartments, which dominate the market.
This rise in property transactions is reflective of the broader economic optimism in the region. The UAE’s business-friendly environment along with the rise in the number of affluent investors and professionals. Moving to the country, is creating a dynamic market for real estate investment. The joint venture between Lunate and Brookfield seeks to align itself with these trends. Tapping into the growing demand for modern, high-end residential developments.
Conclusion
The $1 billion joint venture will play a crucial role in driving the coming wave of growth. In the Middle East’s residential real estate market. With Lunate’s regional expertise and Brookfield’s global asset management capabilities. This partnership is poised for success in the world’s most promising real estate markets.
As the Middle East continues to see growth in both its residential property markets and the overall economy. This collaboration positions Lunate and Brookfield to lead the charge in shaping the region’s real estate future.
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