In a major development, Aldar, based in Abu Dhabi, has made headlines with the purchase of an under-construction tower in Dubai International Financial Centre (DIFC) for AED 2.3 billion. Previously owned by H&H Development, the 40-floor tower is scheduled for completion in 2028 and will feature high-end commercial and retail spaces.
This acquisition marks a significant expansion for Aldar in Dubai, following its earlier announcement of a new office tower on Sheikh Zayed Road and two luxury residential communities. Notably, this is Aldar’s second office building purchase in the city, after acquiring the ‘6 Falak’ tower in Dubai Internet City from Sweid & Sweid.
“Expanding into DIFC is a major milestone in our growth, giving Aldar crucial exposure to Dubai’s financial hub,” said Talal Al Dhiyebi, Group CEO of Aldar. “This acquisition broadens our commercial portfolio and addresses the growing demand for premium office spaces, fueled by the UAE’s strong economic position as a global business hub.”
Rising Demand for Grade A Office Spaces:
Demand for new, high-quality office spaces in Dubai has been steadily increasing. The Tecom Group, for example, has been expanding its commercial real estate holdings through acquisitions, including office blocks at Dubai Internet City.
Speaking about the DIFC tower, Al Dhiyebi added, “This tower will become a flagship asset, offering flexible and premium commercial spaces that meet the needs of multinational and regional businesses.”
The acquisition strengthens Aldar’s portfolio, adding a prime property in DIFC alongside its holdings in Abu Dhabi Global Market (ADGM). Recently, Aldar announced two interconnected commercial towers—‘One Maryah Place’—at Abu Dhabi’s Al Maryah Island as part of its joint venture with Mubadala.
Strong Demand in DIFC’s Commercial Market:
Real estate experts report a steady demand for office spaces in DIFC and nearby areas. “Even after the addition of 990,000 square feet of workspace by ICD Brookfield in 2020, office spaces in DIFC continue to see high demand,” said a leasing expert. Aldar also noted a 15% year-on-year increase in average rents for Grade A spaces in the DIFC area.
H&H Development’s Role in DIFC:
H&H Development, which sold the tower to Aldar, has several notable projects in DIFC, including the Four Seasons Hotel Dubai International Financial Centre and the upcoming Janu Hotel and Residences. The newly acquired tower sits adjacent to these properties.
The sale was facilitated by Cushman & Wakefield Core, with Co-CEO David Abood highlighting the appeal of DIFC’s prime location and world-class amenities for both regional and international investors. Designed by renowned architects Herzog & de Meuron, the tower is targeting LEED Platinum certification and offers customizable floorplans for multi-tenant and single-tenant leasing needs.
“This transaction underscores H&H Development’s commitment to collaborating with top architects, designers, and operators to further elevate the DIFC skyline,” said Shahab Lutfi, Chairman of H&H Development.
Booming Commercial Property Market in Dubai:
Dubai’s commercial real estate market has seen a surge in activity, with significant deals involving office and logistics spaces. Recently, the Avighna Group acquired Emaar Business Park–Building 3 on Sheikh Zayed Road for AED 240 million. This property, located in The Greens, features 150,000 square feet of commercial and retail spaces leased to leading multinational and regional companies.
“The acquisition aligns with our strategy to expand our real estate holdings globally,” said Nishant Agarwal, Managing Director of Avighna Group. “The property’s prime location and top-tier tenants make it a valuable addition to our portfolio.”
Aldar’s latest move highlights the growing demand for high-quality office spaces in Dubai and the city’s ongoing appeal as a global business destination.
