Brookfield Asset Management, through its Middle East private equity strategy, and Lunate, an Abu Dhabi-based global alternative investment manager with over $110 billion in assets under management, have announced the launch of a joint venture (JV) aimed at investing in the residential real estate sector across the Middle East.
The JV, with projected equity of $1 billion, will focus on developing high-quality build-to-sell and opportunistic buy-to-sell residential assets in the UAE, Saudi Arabia, and other key regional markets. Lunate will make a significant cornerstone investment and will leverage its regional expertise and network to support the JV’s commercialisation and fundraising activities. The initiative aligns with Lunate’s broader strategy to create differentiated investment partnerships in high-growth sectors.
A dedicated team will be established to develop and manage the JV’s assets, capitalising on favourable demographic and economic trends driving demand in the Middle East’s residential real estate market. Strong GDP growth and rising population figures, especially in the UAE and Saudi Arabia, continue to attract international capital. The UAE, in particular, has emerged as the top destination for high-net-worth migrants in 2024.
Residential real estate in prime Middle East markets remains appealing, with Dubai and Abu Dhabi recording significant capital appreciation—up 18.0% and 11.1% respectively in 2024—and low vacancy rates contributing to sustained rental growth. Despite global trends, the region continues to offer competitive property pricing, enhancing its attractiveness to institutional investors.
This venture follows Lunate’s strategic acquisition in March 2024 of a 24.5% equity interest in ICD Brookfield Place, a landmark commercial property in Dubai International Financial Centre (DIFC).
Khalifa Al Suwaidi, Managing Partner at Lunate, commented: “Our partnership with Brookfield is a strong demonstration of our ability to provide our clients access to compelling investment opportunities by joining forces with experienced investment managers. Brookfield brings unparallelled real estate and investment expertise, with a proven track record of delivering marquee developments, both regionally and globally. The Middle East’s residential real estate sector presents a highly attractive investment opportunity, driven by the region’s strong economic outlook and growing status as a hub for global wealth and talent.”
Jad Ellawn, Managing Partner and Regional Head, Middle East, Brookfield, added: “Our joint venture with Lunate is significant as we expand into the high-quality residential real estate sector, driven by a rising population seeking premium properties. By combining our private equity operating expertise with our deep global real estate development and management experience, we are well-positioned to deliver best-in-class assets catering to this demand. This partnership underscores our commitment to creating long-term value for investors while catering to the evolving consumer preferences.”
Brookfield maintains a strong footprint across the region, with approximately $15 billion in managed assets spanning private equity, real estate, and infrastructure.