Union Properties maps major Motor City expansion

Union Properties is evaluating the phased development of about 6.6 million square feet of unlaunched gross floor area in Dubai’s Motor City, positioning its largest landholding for further expansion as the company strengthens its finances and advances projects worth billions of dirhams.

The Dubai-listed developer said the undeveloped capacity provides a substantial pipeline beyond schemes already under construction. Future launches will be assessed against market conditions, infrastructure requirements, customer demand and the group’s capital allocation strategy.

“Our strengthened balance sheet and robust liquidity position provide us with significant financial flexibility to support our development pipeline,” chief executive Amer Khansaheb said.

Motor City remains central to the company’s growth plans. Union Properties is progressing the Takaya and Mirdad developments while seeking approvals for another AED2 billion residential community containing about 167 townhouses, villas and bungalows.

The proposed low-rise community is moving through the approval and permitting process. Its development would broaden the company’s residential offering beyond apartments and help capture demand from families seeking larger homes in established neighbourhoods.

Union Properties has approximately AED4 billion of projects under development. Its unrecognised potential development revenue stood at about AED3.87 billion, with much of that income expected to be booked by 2028 as construction milestones are completed and properties are handed over.

Development revenue reached AED101.6 million during the first half of 2026. Gross revenue for the six-month period rose 68 per cent from a year earlier to AED529.3 million, while second-quarter gross revenue increased 69 per cent to AED257.8 million.

The figures underline the company’s shift from restructuring towards delivery and expansion. Union Properties has spent several years reducing liabilities, settling legacy issues and improving cash generation after financial and governance difficulties weakened its ability to develop its land bank.

Its present strategy combines property launches with recurring income from investment assets and operational businesses. The group also intends to use its contracting subsidiary, Tetra Edge, to manage construction execution, control costs and retain a greater share of project margins.

Takaya, one of its flagship schemes, is being developed as a mixed-use residential community in Motor City. The project includes apartments, villas and townhouses alongside retail areas and amenities designed around pedestrian access and open spaces.

Mirdad, valued at AED2 billion, comprises four residential towers containing apartments and loft-style homes. Planned facilities include sports and fitness areas, spas, a clubhouse, coworking facilities and entertainment spaces. Construction across both projects is continuing as the company expands its sales and delivery pipeline.

The 6.6 million square feet of unlaunched floor area gives Union Properties scope to introduce additional residential, commercial and mixed-use projects without acquiring major new sites. This provides a competitive advantage at a time when land costs in established Dubai districts remain elevated.

Motor City has developed into a mature residential destination with schools, shops, healthcare facilities, sports venues and access to major road networks. Dubai Autodrome remains one of the community’s defining assets, while the surrounding residential districts have attracted families and long-term tenants.

Sales records show continuing activity across both completed and off-plan properties in the area. Apartments have traded across a wide price range depending on their age, location and amenities, while villas command higher rates because of their limited supply and larger layouts.

Union Properties is maintaining a positive view of Dubai’s residential market despite slower transaction growth and a large supply pipeline. Developers are expected to face greater competition as thousands of homes move towards completion, making pricing, construction schedules and product quality increasingly important.

The broader market has moved away from the rapid, launch-driven expansion that followed the pandemic. Buyers are becoming more selective, with greater attention being paid to payment plans, completion records, service charges and the long-term viability of individual communities.

A sizeable share of Dubai’s residential sales continues to involve properties under construction. That model provides developers with early cash flow but also increases exposure to shifts in investor confidence, construction costs and financing conditions.

Union Properties’ ability to pace its unlaunched Motor City inventory could help it avoid releasing excessive supply during weaker periods. The company can also adjust the mix of apartments, villas, townhouses, offices and retail space as demand changes.

Management has indicated that new development decisions will be supported by improved liquidity rather than aggressive borrowing. Preserving financial flexibility will remain important as the group funds construction across several large projects and prepares infrastructure for future phases.