Dubai luxury assets secure CPIPG financing

Emirates NBD has extended a AED367.3 million loan facility to Luxembourg-based CPI Property Group, giving the European real estate investor funding cover for deferred payments on a portfolio of ultra-luxury residential units in Dubai through 2026 and 2027.

The transaction, equivalent to about $100 million or €86 million, is secured against 19 high-end residences owned by CPI Property Group, including 15 units still under construction. The assets are spread across some of Dubai’s most expensive branded and waterfront addresses, including Bvlgari The Lighthouse on Jumeirah Bay, Casa Canal and One Canal along the Dubai Water Canal, and Mr. C Residences Downtown.

The financing marks a fresh sign of how Dubai’s top-end residential market continues to draw institutional capital, even as global property investors face higher borrowing costs, tighter refinancing conditions and more selective buyer demand. For Emirates NBD, the deal adds to its role as a lender to international property groups seeking local funding structures linked to UAE assets. For CPIPG, it improves liquidity and aligns debt repayment with the completion and sale timetable of its Dubai holdings.

CPIPG, one of Europe’s major real estate groups, has been reshaping its balance sheet after a period of pressure across continental property markets, where higher interest rates reduced asset values and made refinancing more expensive. Its Dubai exposure is different from its core European income-producing portfolio, which is largely built around offices, retail, hotels and residential assets. The emirate’s luxury homes are held as a development-linked investment, with the group planning to sell units in phases after completion.

The Dubai assets backing the facility sit in a segment that has outperformed much of the global residential market since 2021. Prime waterfront districts, branded residences and large-format apartments have benefited from demand from ultra-high-net-worth buyers, entrepreneurs, family offices and mobile professionals. Dubai’s tax regime, safety, aviation connectivity and business infrastructure have helped position the city as a base for wealthy residents from Europe, Asia and the wider Middle East.

That strength has also encouraged banks to structure lending against completed and under-construction luxury units. Such facilities allow investors to meet staged payment obligations to developers without immediately selling assets, while lenders take comfort from collateral in locations where supply is scarce and buyer demand has remained resilient. The CPIPG facility has been arranged to match the cash-flow profile of the portfolio, reflecting the phased nature of construction, handover and eventual disposals.

The deal comes as Dubai’s property market remains one of the most active globally by transaction value, although analysts have warned that the broader residential cycle is entering a more selective phase. Off-plan sales have continued to dominate activity, supported by payment plans and investor demand, but a large pipeline of new homes scheduled for delivery through 2026 and 2027 has raised expectations of slower price growth in some districts. The top end of the market is expected to remain more insulated, particularly in waterfront and branded projects where supply is limited.

Luxury residential activity has increasingly become a separate market within Dubai’s wider housing sector. Prices for prime homes have risen sharply over the past four years, helped by an inflow of wealth and limited availability of trophy assets. Buyers at this level are less dependent on mortgage rates than mass-market purchasers, but they are becoming more selective on developer reputation, location, service standards and resale depth.

For Emirates NBD, the loan is backed by a strong balance sheet at a time when UAE banks are benefiting from loan growth, elevated liquidity and steady demand from corporate clients. The bank’s lending has expanded across sectors, supported by Dubai’s economic diversification, infrastructure spending and the rise of the emirate as a regional wealth and investment hub. Real estate remains a key part of that growth, though lenders have generally become more disciplined after previous property cycles exposed the sector to sharp corrections.

CPIPG’s chief executive David Greenbaum said the financing gives the group additional flexibility and underlines the quality of its Dubai investments. Hitesh Asarpota, chief executive of Emirates NBD Capital, said the facility reflects the bank’s focus on tailored financing for leading corporates and confidence in the UAE’s financial ecosystem.