In the dynamic landscape of the UAE’s Real Estate sector, the property market continues to experience strong growth, driven by robust demand, healthy economic performance, and significant foreign interest. In Dubai alone, both sale prices anc rentals have registered annual increases of around 21%. A prominent name in this flourishing market is Union Properties, the first publicly listed Real Estate development company in the UAE. With over three decades of excellence, the Company has delivered landmark projects and built iconic communities across the country, cementing its reputation as a leader in the sector.
Under the leadership of Eng. Amer Khansaheb, CEO and Board Member of Union Properties, the Company has emerged as a transformative force in the Real Estate sector. With a rich blend of civil engineering, financial analysis, and project management expertise, Amer brings a multidisciplinary approach that is crucial for navigating today’s complex business environment. His diverse educational background and broad skill set exemplify the innovative thinking and leadership needed for success in this dynamic industry.
Union Properties PJSC, a public joint stock company listed in 1993, launched its property development in Dubai in 1987 with a diverse investment portfolio and has since grown to become one of the leading developers in the UAE with a proven track record of delivering top-notch landmark projects. Iconic developments such as MotorCity, Green Community, Uptown Mirdif, Index Tower, and Limestone House in DIFC are just a few examples of the prestigious projects that define Union Properties’ portfolio.
In late 2021, Khansaheb took over Union Properties, guiding the Company towards a new era of growth and innovation. His mandate was to revitalize the Company, aiming for sustainable expansion and enhanced shareholder value.
During a recent conversation, Khansaheb shared his future plans, emphasizing his vision to build on Union Properties’ strong foundation while embracing new growth opportunities.
Q. What is your vision for Union Properties, and how does it align with the evolving landscape of Real Estate in the UAE?
My definition of a vision is to be open-ended, inspiring, and wide. I believe a vision for any business needs to be large and motivating. At Union Properties, we strive to impact people’s lives positively, focusing on three key factors that align with the evolving Real Estate landscape in the UAE. First and foremost, we prioritize quality of life. We understand that we’re not just delivering brick-and-mortar structures; we’re creating spaces where life unfolds. In our developments, people live, children grow, families form, and communities thrive. We aim to have a positive impact not just on individuals, but on families, communities, and the environment as a whole. This holistic approach reflects the growing demand in the UAE for developments that enhance the overall well-being and roster community engagement.
Secondly, we place a strong emphasis on sustainability and smart buildings. We live in an ever-changing world, and the pace of change is rapid. Our focus is on how our developments can stay relevant 10, 20, or even 30 years from now. We’ve seen how technological advancements, like smartphones, have fundamentally changed the way people interact and live. Companies that once dominated industries can become irrelevant almost overnight. With this in mind, we try to anticipate future needs and design our buildings to be adaptable and smart. We ask ourselves: What will the world look like two decades from now? What will be the requirements and emphases of future generations? By focusing on delivering developments that will continue to be relevant, we align ourselves with the UAE’s push towards smart cities and sustainable urban development. The third factor, which is of importance, is our commitment to climate neutrality. Climate change is a global concern that impacts everyone, and people are becoming increasingly aware of and Interested in this as developers. As developers, we have a significant responsibility to deliver buildings that can help sustain life for future generations. We carefully consider how each of our buildings will impact the climate and the environment. This approach not only fulfils our moral obligation but also makes good business sense. As people become more conscious of climate change and sustainability, they are actively seeking products that benefit them and the planet in the long term. By intertwining these three factors-family-centric design, futuristic vision, and sustainability – we position Union Properties at the forefront of Real Estate development in the UAE. Our vision isn’t just about constructing buildings; it’s about creating living environments designed for the future. We’re committed to not only meeting current market demands but also anticipating future trends. This approach ensures our continued relevance and success in the rapidly evolving Real Estate industry of the UAE.
Q. With your deep understanding of the Real Estate market and your leadership experience, what advice would you give to an investor looking to invest $5M in Dubai’s Real Estate Sector?
Over the past two decades, Dubai’s Real Estate market has experienced remarkable growth, elevating itself to a global scale. Today, we have a diverse range of products, catering to various investor needs and preferences. However, in this dynamic environment, it’s crucial to understand that investing in Real Estate is fundamentally about investing in the future, not the past.
Any investor entering the Dubai market needs to carefully consider how their chosen property will stand among other developments in the years to come. The key question is: Will this building remain relevant in the future? This forward-thinking approach is essential in a rapidly evolving urban landscape like Dubai’s.
Let’s consider a current trend as an example: the shift towards electric vehicles. Globally, we’re witnessing a transition from conventional combustion engines to electric vehicles, a move that’s increasingly mandated by governments worldwide. It’s reasonable to project that within the next decade, many manufacturers will phase out combustion engines in favor of EVs. In this context, a critical question for Real Estate investors becomes: Is the building equipped to install EV chargers? This simple query illustrates a broader point about future readiness in Real Estate. But EV readiness is just one of many future considerations. This could encompass a wide range of factors, from advanced connectivity for smart home systems to adaptable spaces that can evolve with changing work-life patterns. It’s important to note that this future-focused approach often contrasts with the short-term thinking we sometimes see in the market. In Dubai’s competitive and forward-looking Real Estate market, the most successful investors are those who can anticipate and adapt to future trends. They understand that a property’s value isn’t just about its current amenities or location, but about its potential to meet the needs of future residents and businesses. As developers and industry leaders, it’s our responsibility to not only create properties that meet current demands but to envision and build for the future. This means integrating adaptable designs, sustainable technologies, and forward-thinking amenities that will ensure our developments remain relevant and valuable for decades to come.
Q. Real estate is often described as a 7-10-year cycle, and we’re four years into the post-COVID cycle. Drawing on your expertise and years of experience, how do you perceive the current Real Estate cycle in the UAE, especially in the light of post- COVID recovery?
Economic history has consistently shown that Real Estate is inherently cyclical. There is a significant contrast between the UAE today and its condition before the COVID-19 pandemic. The government’s effective management during and after the pandemic has set the UAE apart, earning it significant global recognition. We see the effects of this transformation firsthand: an influx of new businesses, large-scale corporations, and high-net-worth individuals relocating their family offices and residences has created a substantial demand in the Real Estate market. This shift is also a result of the government’s initiatives to improve the business environment, making it more attractive for new enterprises. This change is particularly evident in the commercial Real Estate sector. For the first time in 15 or 16 years, we are experiencing a noticeable shortage of office space. This marks a significant departure from the past decade and a half, during which residential properties dominated the market. The rising value of office space acts as a reliable indicator of economic health. As long as the economy remains dy-namic, continues to grow, and attracts a rising population, demand will persist. Although Real Estate markets are cyclical, the current economic conditions suggest a strong outlook for the UAE Real Estate market in the short to medium term. The increase in office space rents reflects the shortage driven by the surge in businesses setting up operations here. This trend underscores the UAE’s growth and appeal as a global business hub. The government’s role in enhancing the economic environment and making it more conducive to business has been pivotal in driving this positive change.
Q: Given your role as CEO and Board Member of Union Properties, how has your long-standing experience shaped the growth and success of Union Properties?
When I assumed the role of CEO and Board Member at Union Properties, our first focus was to thoroughly review the business model and set out to redesign the entire organizational structure. Our primary objectives were to create synergies, enhance efficiencies, and establish centers of excellence at the corporate level. This approach was crucial for improving governance and control. The results of these efforts were transformative; within just 12 months, we successfully shifted from operational losses to operating profits. Building on this initial success, we continued to implement strong governance frameworks and robust control measures, all while encouraging our team to excel. One of our greatest assets at Union Properties is our people – we have numerous smart, hardworking, and driven individuals who were simply looking for an opportunity to shine. As they witnessed the positive changes taking place and felt the renewed focus on their potential, they saw the board’s commitment to growing the business and doing what’s right. This environment unleashed their potential, leading to remarkable results.
In 2023, we achieved nearly 21% growth in our top line, which is a testament to our team’s hard work and dedication. Even more impressively, our operating profit grew tenfold. We’re continuing this growth trajectory into 2024, which is incredibly encouraging for the future of Union Properties. Our turnaround strategy unfolded in multiple phases. The first phase focused on redesigning the organizational structure, improving efficiencies, and reducing costs – essentially transforming our operational losses into profits. We accomplished this, we moved into the second phase, which centered on deleveraging the business. This involved renegotiating our debts and restructuring the financial capital of the Company.
Now, we’re in the third phase: growth. We’re back to launching Real Estate developments, with our first project, TAKAYA, already generating great demand in pre-launch sales. The response has been so positive that we’re accelerating the timeline for our next project. Throughout this process, I’ve learned the importance of identifying problems holistically and addressing them systematically. Equally crucial has been recognizing the potential in our team members and providing them with the opportunity to contribute to our overall growth. As we move forward, we’re excited about the future of Union Properties.
The turnaround we’ve achieved is not just about numbers; it’s about creating a sustainable, efficient, and growth-oriented Company that’s well-positioned to meet the evolving demands of Dubai’s dynamic Real Estate market. Our journey so far has been remarkable, and I’m confident that with our dedicated team and strategic vision, we’ll continue to achieve new heights in the coming years.
Q. Union Properties has been at the forefront of luxury Real Estate development under your leadership. Could you share your insights on how the Takaya project in Motor City reflects Dubai’s shift towards luxury and comfortable living?
In developing Takaya, we’ve adhered to the three key factors that drive our vision: quality of life, smart building management, and sustainability. Firstly, we place immense emphasis on quality of life. Every layout in Takaya has been meticulously designed with attention to detail, considering the flow of people within the buildings and the provision of amenities. We’re proud to offer an extensive range of facilities, including jogging tracks, multiple swimming pools, multipurpose halls, and even cinemas. This comprehensive approach to amenities is somewhat unique in Dubai’s Real Estate landscape.
What sets Takaya apart is its sheer scale. We’re working with a vast plot of approximately 440,000 square feet, featuring a stunning 500-meter road frontage. This allows us to incorporate beautifully designed retail spaces on the ground floor and create expansive open areas within the project. Our podium level, for instance, features a huge garden, offering residents a park-like environment within their building complex – a rarity in urban developments. The second factor we’ve embedded into Takaya’s design is advanced building and energy management solutions. We’re utilizing cutting-edge technology to optimize building operations, focusing on reducing unnecessary costs from energy consumption and soft services.
This approach allows us to maintain a high level of service while delivering cost efficiencies. The result? Lower operating costs for residents and an increased buffer for continual reinvestment in the building, ensuring it maintains and even improves its value over the coming decades.
Sustainability, our third focus, is crucial in addressing climate change and environmental concerns. We’ve designed Takaya with high-performance facades that go beyond Dubai Municipality guide-lines. We’re paying special attention to sound and heat insulation, ensuring the building is sustainable, weatherproof, and supports reduced energy consumption. Regarding the shift towards more luxury and comfortable living, we’re seeing a clear trend in this direction. Today’s discerning residents are looking for more than just a place to live; they want a comprehensive lifestyle experience. They seek spaces that offer comfort, convenience, and a sense of community, all while being environmentally conscious.
At Union Properties, we’re not just responding to this trend; we’re anticipating future needs. Our approach with Takaya – combining spacious, thoughtfully designed living spaces with extensive amenities and cutting-edge sustainability features – represents our vision of luxury living for the future. We believe that true luxury in Real Estate is about creating environments that enhance every aspect of residents’ lives while also being responsible for our planet. It’s about offering not just a home, but a forward-thinking, sustainable, and community-oriented lifestyle. With Takaya, we’re not just building apartments; we’re crafting the future of urban living in the UAE.
Q. If you were an investor, what would your perspective be on the Takaya project?
As an investor looking at Takaya, we emphasize the importance of considering future trends and plans. With Takaya, we’ve meticulously incorporated all the necessary elements to ensure its relevance among its peers for decades to come. Let me elaborate on what makes Takaya a compelling investment: Firstly, we’ve implemented a high-performing facade system – one of the most advanced in the market. This isn’t just about aesthetics; it’s a strategic decision to ensure low energy consumption. In an era where sustainability is increasingly valued, this feature will contribute significantly to maintaining the building’s appeal and efficiency over time. We’re also leveraging cutting-edge technology to optimize service charges.
This focus on cost-effectiveness is crucial for long-term investment value, as it helps maintain the property’s attractiveness to both owners and tenants over the years. The amenities we offer at Takaya are exceptional. We’re utilizing a vast plot of approximately 400,000 square feet to create extensive parks and green spaces. This includes sports facilities like jogging tracks, paddle courts, and basketball courts. In an urban environment, such generous open spaces are a rarity and will undoubtedly be a key selling point for years to come. Moreover, we’re future-proofing Takaya in terms of evolving transportation needs. Nearly 25% of our parking spaces are equipped with EV chargers. This for-ward-thinking approach aligns with the global shift towards electric vehicles, ensuring that Takaya remains at the forefront of residential developments. From an investment perspective, these features collectively position Takaya as a property that’s not just meeting current market demands but anticipating future needs. The combination of energy effi-ciency, advanced technology, extensive amenities, and EV readiness creates a compelling value proposition. Investors should recognize that Takaya isn’t just a residential development; it’s a vision of future living. We’re creating a community that balances luxury with sustainability, and comfort with efficiency. As urban living evolves, properties like Takaya that have been designed with foresight will likely see sustained demand and value appreciation. In essence, investing in Takaya is investing in a future-proof asset. It’s a property that’s designed to meet the evolving needs of residents, align with sustainability trends, and maintain its competitive edge in the market. For investors looking for long-term value and relevance in their Real Estate portfolio, Takaya presents an opportunity that’s hard to overlook.
Q. What are the projections for 2025, and what can potential investors look forward to in your upcoming project?
As we look toward the future of Union Properties, I’m pleased to share our projections and market outlook, particularly focusing on our expectations for 2025. The Real Estate market in Dubai remains robust and healthy, providing a strong foundation for our growth strategies. We’ve previously announced an ambitious pipeline of projects valued at 5 billion dirhams. This portfolio reflects our confidence in the market and our capacity to deliver high-quality developments that meet evolving consumer demands. Our flagship project, Takaya, represents a significant portion of this pipeline, with an estimated value of 1.8 billion dirhams. In addition to Takaya, we currently have two other projects in the design phase. The strong sales performance we’re witnessing, particularly with Takaya, is encouraging us to accelerate our timelines for these upcoming projects. This agility in response to market demand is a key strength of Union Properties. Looking specifically at our projections for 2025, we anticipate a period of substantial growth. Based on current market trends and our project pipeline, we foresee the potential to achieve sales of at least 4 billion dirhams between now and the end of 2025. This projection is underpinned by the strong demand we’re experiencing and our ability to bring high-quality products to market efficiently.
These sales figures are expected to be a significant driver of our development growth and overall revenue expansion. The realization of these projects will not only contribute to our top-line growth but also reinforce our position as a leading player in Dubai’s competitive Real Estate market. Moving forward, our emphasis remains on delivering high-quality, future-proof developments that align with our vision of enhancing quality of life, leveraging smart technologies, and prioritizing sustainability. These princi-ples, combined with our strong financial projections, position Union Properties for a period of significant growth and value creation in the coming years. We’re excited about the opportunities that lie ahead and remain committed to transparency in our communications with investors and stakeholders as we work towards realizing these ambitious goals.
Q. How is Union Properties working towards sustainability, and how will these efforts benefit the generation?
When we talk about sustainability, we’re looking at a fundamental shift in how we approach development and quality of life. The benefits are immense, and they touch every aspect of our existence. First, let’s consider the impact on our daily lives. Take smart buildings, for example. These structures can efficiently use energy based on how the space is being used. This isn’t just a technological marvel – it translates directly to reduced costs. We’re seeing lower energy bills, reduced service charges, and ultimately, better profits for investors. But it goes beyond economics.
Sustainability is intrinsically linked to our health and well-being. When we embrace sustainable practices, we’re choosing materials and methods that promote healthy living. We’re creating spaces that are not just environmentally friendly, but actively beneficial for the people who use them. Climate resilience is another critical benefit. As we face increasing challenges from climate change, sustainable practices help us mitigate the impacts of extreme weather events. This isn’t just about comfort – it’s about maintaining the stability of our communities and economies. Fundamentally, sustainability is about balance. It’s a holistic approach that considers environmental protection, economic growth, and social well-being. By adopting sustainable practices, we’re not just preserving our planet for future generations – we’re actively improving our quality of life today. In my view, sustainability isn’t a choice – it’s the only way forward if we want to create a prosperous, healthy, and resilient future for all. It’s about smart, forward-thinking decisions that benefit everyone, from individuals to businesses to entire societies.
Q. Imagine we are having the same conversation in a few years. Beyond more Union Properties constructions, what else do you envision we would be discussing in terms of the Com-pany’s growth and impact?
Looking ahead, I anticipate that our conversations will inevitably center around the climate impact of the Real Estate industry. This critical topic has yet to receive the attention it deserves, and there remains significant work to be done in this area. At Union Properties, we proactively address this challenge by embedding sustainability principles into our designs. We take this responsibility seriously, recognising its importance for our future and that of the planet. I envision that in the coming years, as we begin to deliver our developments, people will have the opportunity to see and experience firsthand the tangible results of our commitment to sustainability. This practical demonstration will be crucial in shifting perceptions and setting new industry standards. We already have an exemplary project in the pipeline that showcases our dedication to sustainable development. This project serves as a testament to our forward-thinking approach and our ability to balance environmental considerations with market demands. By focusing on innovative, sustainable solutions, Union Properties aims to lead the industry in creating developments that not only meet the needs of our clients but also contribute positively to the environment. Our goal is to be at the forefront of this necessary evolution in Real Estate, setting benchmarks for others to follow.
As conversations among developers and investors continue, the UAE is increasingly recognized as a prime investment destination. The country’s strategic location, dynamic economic environment, and commitment to innovation create a compelling landscape for investment. With ongoing developments and a forward-looking approach, the UAE is set to continue its trajectory as a top global investment hub, offering significant potential for high returns and long-term value.
Watch the video interview here.
