The future of Shangri-La Dubai is currently a topic of discussion as the company explores different avenues to enhance the property. With an ongoing strategy evaluation, the goal is to revamp this mixed-use asset and discover new ways to maximize its value, ensuring it remains competitive in the luxury real estate market.

Future Plans for Shangri-La Dubai

According to Sajwani, the strategy for Shangri-La is yet to be finalized, but the emphasis is on upgrading various parts of the property. “Our focus is luxury real estate, whether it’s in residential, commercial, or hospitality sectors,” he stated. The company is looking into ways to renovate office spaces and improve income generation to add value to the property. He acknowledged the project’s potential, saying, “It ticks all the boxes for what we need.” Although the strategies remain under consideration, the asset plays a crucial role in their overall portfolio.

The firm is actively expanding its presence along Sheikh Zayed Road, with the AHS Tower currently under construction and plans for another significant mixed-use development slated for launch later this year. “We own another plot that we will unveil at year’s end,” Sajwani revealed. This new project is set to be a massive Dh25 billion endeavor, although further details will be announced later.

The Issue of Scarcity on Sheikh Zayed Road

Sajwani pointed out the scarcity of land in Dubai’s prime areas, which is expected to drive price appreciation in the long run. “Dubai will continue to grow, and prime locations will maintain their value,” he said. With no new land available on Sheikh Zayed Road, existing assets in this region are likely to continue rising in value. Demand for both office and residential spaces remains strong, further solidifying the desirable nature of the area.

This acquisition enhances AHS Properties’ footprint on Sheikh Zayed Road, which already includes notable projects like AHS Tower and AHS City. Sajwani reiterated that another significant mixed-use development, with an estimated cost of Dh25 billion, is in the design phase and expected to be announced shortly.

Strong Performance in Prime Dubai Districts

Sajwani expressed optimism regarding the future performance of Dubai’s established luxury districts. He identified Sheikh Zayed Road, Downtown Dubai, Dubai Water Canal, Palm Jumeirah, and Bulgari Island as key areas that will continue to attract affluent buyers. “I believe luxury properties will experience significant price increases,” he shared.

Additionally, he pointed out that Dubai’s long-term population growth and the ongoing expansion of the tourism sector will further bolster demand across residential, commercial, and hospitality sectors. AHS Properties anticipates that its gross development value will reach approximately Dh50 billion by the end of this year, as reported by Sajwani.

Despite facing a slight slowdown in transaction volume, particularly in ultra-luxury segments, Dubai’s real estate market has shown resilience. Brokers have indicated that high-net-worth individuals are taking longer to finalize deals, primarily for luxury homes priced above Dh20 million. A cautious “wait-and-watch” stance is shaping investor behavior amid ongoing geopolitical uncertainties, affecting the pace of sales but not diminishing the inherent value of Dubai’s luxury real estate market.