(22 October 2024)
In a strategic move to harness untapped financial avenues, investment advisors Medallion Associates have unveiled its Institutional Investor Desk, aiming to capitalize on the thriving Dubai real estate market. With property transactions soaring by 32% and sales value climbing by 23%, this initiative comes at a pivotal moment for the city’s post-pandemic recovery.
The resurgence of Dubai's real estate sector reflects a broader global demand for real estate, bolstered by proactive regulatory reforms from the Dubai government and the Dubai Land Department (DLD). As the market continues to evolve, Medallion’s Institutional Investor Desk seeks to align with the government’s ambitious Real Estate Sector Strategy 2033, which aims to raise real estate transactions in Dubai to AED 1 trillion, while doubling the sector’s contribution to economic diversification.. The ”Desk”is expected to be a cornerstone of the visionary Dubai Economic Agenda D33, initiated by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE.
The “Desk” will focus on enhancing access to institutional capital by collaborating with investment consultants, advisors, and placement agents. By building strong partnerships and networks, Medallion aims to elevate its credibility in the market and facilitate greater investment flow into Dubai.
Masood Al Awar, CEO of Medallion Associates, highlights the current investment landscape: “Dubai real estate industry has been something of an underachiever when it comes to attracting institutional investment. Despite controlling a staggering USD 120 trillion in global assets, institutional investors have only allocated USD 52 billion to Dubai. Our goal is to change that narrative and draw more of this investment to our vibrant market.”
The Medallion Institutional Investor Desk will also offer bespoke investment mandates and separately managed accounts (SMAs) tailored to align with specific risk-return profiles and liquidity needs of investors. This personalized approach will ensure that institutional partners can confidently invest in Dubai’s dynamic real estate sector, maximizing their returns while mitigating risks.
Dubai consistently outperforms other leading real estate markets, offering rental yields as high as 9%. Its favorable tax environment—characterized by the absence of property and capital gains taxes—makes it one of the most attractive destinations for real estate investment. Yet, Medallion’s analysis indicates that the real estate industry has captured only a small fraction of the institutional investment potential, a challenge the new Desk is poised to address.
Al Awar emphasizes Dubai’s unique advantages: “The post-COVID investment landscape of the present offers few opportunities that match what Dubai has to offer. Our mission at Medallion is to transform these advantages into concrete results, driving enduring institutional investment flows that will benefit our economy now and in the future.”
Through its Institutional Investor Desk, Medallion Associates aims to be at the forefront of enhancing Dubai's appeal to institutional investors. By building strategic partnerships and providing tailored investment solutions, Medallion is committed to ensuring that the city fully realizes its potential in the global real estate arena.
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