Abu Dhabi’s biggest developer, Aldar Properties PJSC, will deploy a further 5 billion dirhams ($1.4 billion) to develop a range of income-generating assets within key destinations in Abu Dhabi.

The retail, commercial and hospitality assets, which will be held in the company’s investment portfolio, will be delivered in a phased manner between 2025 and 2027, the developer said in a statement on the Abu Dhabi Securities Exchange on Tuesday.

The investment will see Aldar develop new commercial assets across three key destinations, Yas Island, Saadiyat Island, and Al Maryah Island and will increase Aldar’s commercial net leasable area (NLA) by 31% to 549,000 square metres.

On Yas Island, the development will include a new 12-storey office tower which is under development next to the Yas Plaza Hotels and is expected to be handed over in 2025.

On Saadiyat Island, Aldar will develop a business park at Saadiyat Grove, an integrated mixed-use development. Set for completion in 2027, the project incorporates four Grade A commercial office buildings.

On Al Maryah Island, Abu Dhabi's financial district, Aldar in partnership with Mubadala will develop a second Grade A commercial tower that will be added to the site of the 37-storey office building announced in 2023.

On the retail side, Aldar is developing 78,000 sqm of NLA at Saadiyat Grove, including a central shopping destination, two retail boulevards, and community retail spaces.

Once the office and retail assets are completed, they will be part of the Aldar Investment Properties (AIP) portfolio, which houses the company’s AED 25 billion of income-generating real estate assets.

As a growing number of international firms set up their offices in the UAE, the limited availability of quality office space will add to the upward pressure on rental rates in the short term, property consultancy JLL noted in October last year.

(Writing by Brinda Darasha; editing by Seban Scaria)
(brinda.darasha@lseg.com)