Global Institutional Investors Target Dubai and Abu Dhabi Real Estate: Signaling Strong Conviction in the UAE’s Property Market

Over the past two years, the UAE real estate investment market has entered a new phase — not just of growth, but of global institutional validation. Landmark deals involving the likes of Brookfield, Goldman Sachs, Apollo, and Hillhouse Capital reflect a strategic shift among international investors toward the Gulf, with Dubai and Abu Dhabi leading the charge.

Driven by robust returns, regulatory reform, and a globally competitive investment climate, Dubai and Abu Dhabi real estate 2025 are increasingly seen as essential components of portfolios — not peripheral opportunities. Below, we examine some of the key transactions that have defined this new wave of capital inflows and ⁠foreign investment in the UAE.

ICD Brookfield Place: A Record-Setting Commercial Asset

Few assets better exemplify Dubai’s appeal to institutional investors than ICD Brookfield Place, a 53-storey, 1.1 million sq. ft. tower in the heart of DIFC. Developed as a joint venture between Brookfield and the Investment Corporation of Dubai (ICD), this property is not just a landmark — it's now the centerpiece and one of the largest-ever UAE commercial real estate deals; attesting to the promising Dubai property market trends.

In early 2025, Brookfield sold a 49% stake in the tower, reportedly to a consortium of heavyweight investors. While financial terms were not disclosed, the scale and timing of the deal underline how global capital sees DIFC as more than a local hub — it's a gateway to emerging markets, backed by solid regulation, premium tenants, and an investor-friendly tax structure.

Brookfield’s continued commitment, with plans to develop a new mixed-use project in Dubai Hills, reflects a long-term strategic view that Dubai's premium commercial space still offers significant upside.

Goldman Sachs & Sunset Hospitality: Betting on Branded Hospitality

Goldman Sachs is another global player betting on Dubai — but their strategy is skewed toward hospitality. In 2024, Goldman Sachs Asset Management invested an additional $25 million into Sunset Hospitality Group (SHG), a UAE-based operator expanding rapidly across Europe, Asia, and the Gulf.

This followed a $35 million investment into SHG, signaling deepening commitment. SHG’s ambition to manage or operate 20 hotels by 2026 — including in cities like Barcelona, Milan, and Singapore — shows how Dubai-based firms are no longer just local operators; they are evolving into global hospitality brands.

Goldman Sachs Sunset Hospitality investment also aligns with Dubai’s broader tourism boom and the maturing of its hospitality industry. With long-stay tourism, digital nomads, and luxury demand growing, institutional capital is now chasing yield in experiential, globally scalable hospitality assets.

Apollo & Aldar Properties: Structured Capital for Growth

In Abu Dhabi, the most headline-grabbing transaction has been Apollo’s ongoing capital support to Aldar Properties, one of the UAE’s largest developers. In early 2025, Apollo invested $500 million in subordinated notes issued by Aldar — part of a broader $1.9 billion multi-transaction relationship that began in 2022.

⁠Apollo Aldar investment is notable for its structure and scale. The hybrid private placement — among the largest in the region — demonstrates not just Apollo’s faith in Aldar, but also Abu Dhabi’s ability to absorb and deploy complex, structured international capital.

According to Apollo’s partner Jamshid Ehsani, the investment reflects “a leading real estate franchise that offers an attractive investment opportunity.” That confidence is grounded in Aldar’s stable cash flows, diversified asset base, and increasingly global investor relationships.

Hillhouse Capital & Virtuzone: Private Equity Looks to Platforms

In a less conventional but equally significant move, Hillhouse Capital, a major Asian private equity firm, has entered the UAE market via Ascentium, a platform company that acquiredVirtuzone, a leading UAE-based business setup and corporate services provider.

Following this, Ascentium’s real estate arm Rava Partners acquired the physical real estate of Hartland International School, valuing the transaction at $100 million.

This deal underscores two themes. First, the UAE is attracting not just property buyers, but platform investors seeking operating companies with real estate assets and real estate private equity in the UAE. Second, the education sector — with long-term tenants, stable cash flow, and underlying land value — is emerging as an attractive niche within the broader real estate narrative.

Mapletree and the Rise of Sovereign-backed Expansion

Finally, Mapletree Investments, backed by Singapore’s sovereign wealth fund Temasek, is looking to allocate$2 billion across the Gulf — after opening an office in Abu Dhabi in 2024.

While specific transactions about the Mapletree Gulf expansion have yet to be announced, the scale of planned deployment, and the firm’s track record in logistics, commercial, and student housing globally, suggest that new asset classes could soon gain traction in the UAE — including data centers, co-living, and student accommodation.

What’s Driving the Capital Inflow?

Three key forces are shaping this investment trend:

• Yield Differentials: Prime office yields in Dubai and Abu Dhabi remain significantly higher than in cities like London or New York, while offering comparable tenant quality and lower vacancy rates.
• Policy Innovation: Programs like the Golden Visa, regulatory frameworks for digital assets, and zero personal income tax are attracting business migration — and the real estate demand that follows.
• Post-COVID Realignment: Dubai’s early reopening and business-first approach post-2020 helped it attract global talent and capital when many other markets were still locked down.

According to Knight Frank, Dubai recorded more office building sales in the last two years than in the previous decade. Lease rates rose by 9.1% year-on-year in H2 2024, while hotel transactions (15 in the past 30 months) reflect sustained appetite in the hospitality segment.

Conclusion: A Maturing Market for Institutional Capital

The recent wave of landmark transactions demonstrates that Dubai and Abu Dhabi are not just recovering — they are evolving into mature, globally relevant real estate markets. The involvement of institutions like Brookfield, Apollo, Goldman Sachs, and Hillhouse underscores the UAE’s unique positioning: high-growth, policy-stable, and globally accessible.

For investors, including institutional investors in Dubai, the message is clear — the UAE real estate investment market is no longer an “emerging” opportunity. It’s an established, yield-driven, and strategically critical destination for global capital.