Dubai-based real estate developer, Union Properties (UPP), has its sights set on a new residential community project: Motor City. Situated next to Dubai’s Formula 4 circuit, the inland development is set to undergo construction by the end of this year, pending regulatory approvals, and looks to comprise three buildings with 880 buildings spanning a total of 860k sqft.
Motor City is the 4th residential development for Union Properties and the company’s Chairman plans to expand the community with further commercial and hospitality sector projects. This ambitious growth plan comes as a turnaround for the company, which bore the brunt of the pandemic’s effect on Dubai’s real estate market. In 2020, Union Properties saw accumulated losses of $534m due to its portfolio experiencing valuation declines. Since then, though, due to higher rental collections and lower financing costs, the company’s seen a significant five-fold quarterly increase in its net profits for Q2 2021.
why it matters
Dubai’s 2040 Urban Master Plan is focused on encouraging developers like UPP to add to the emirate’s urban development. The company might be early, but its foresight has meant a two-fold increase in its share price from its pandemic lows and a 0.3% increase yesterday at market close.