Abu Dhabi-based real estate developer Aldar Properties has joined forces with Dubai Holding, the investment vehicle of the emirate's ruler Sheikh Mohammed bin Rashid al-Maktoum, to make its entry into Dubai's real estate market.

The two companies have signed a binding joint venture agreement to develop new communities in three locations across the suburban heart of Dubai, Aldar, which is listed on the Abu Dhabi's ADX exchange, said in a regulatory filing on Thursday.

The JV will develop some of the last remaining vacant and undeveloped plots of land in the corridor between two of the UAE's major highways, the Sheikh Mohammed Bin Zayed Road (E 311) and the Emirates Road (E 611).

Aldar will be responsible for the full development cycle, including concept design, sales, delivery, and management of the developments, which include new communities in three locations across an area of 38.2 million square feet.

Talal Al Dhiyebi, Group CEO at Aldar Properties, said: "Our entry to Dubai is a milestone moment for Aldar, and we are excited about our long-term growth potential in the emirate alongside Dubai Holding, a prominent and strategic partner."

The Dubai property market has boomed in the past year, registering 90,881 residential transactions in 2022, according to real estate consultancy CBRE Group. A recent report by DXBinteract.com, a portal and app for interactive data in real estate, showed that the emirate saw 76% growth in sales compared to 2021, at a total value of 265 billion dirhams ($72 billion). The pace of sales is expected to continue in 2023.

(Reporting by Brinda Darasha; editing by Seban Scaria)