Aldar international unit plans to deliver 9,000 homes in next five years

Aldar Properties International, a London-based real estate company, has announced plans to develop and deliver approximately 9,000 residential homes within the next five years in the UK capital. This growth in home construction comes as demand remains robust, according to Scott Brown, the company's chief financial officer.

The new residential buildings will be constructed across about 30 sites, with more than 3,600 homes available for sale, 1,538 for build-to-rent, and 3,575 designated for the affordable housing segment. The affordable market segment is supported by government assistance to help people purchase homes.

Since its establishment in 2010, London Square, a subsidiary of Aldar Properties, has delivered 5,000 homes across 46 locations with a combined development value of £2.9 billion. Under the Aldar banner, the company's sales performance has outperformed its historical data and exceeded expectations in the current market, Brown stated.

London Square focuses on revitalizing former industrial sites, including developments such as Nine Elms, which boasts over 750 residential units and 21,500 square feet of commercial and retail space. The company is also transforming the former Surrey County Council headquarters into a premium 292-home development, incorporating the restoration of historic structures.

A significant portion of the projects will be affordable housing, with the company aiming to complete 600 homes this year, up from 398 in the previous year. The sales backlog is expected to reach £1 billion by the end of 2026, with a majority of the new builds targeted at the affordable market.

Sales for the first half of 2023 generated £251 million, a 236% increase from the previous year, driven by three new projects: Bermondsey Phase 3, Wimbledon Bridge House, and Ransome’s Wharf. Notably, international demand accounts for 10-15% of total international sales, with UAE buyers leading the pack, followed by investors from China, Singapore, and Turkey.

The London property market has faced challenges due to geopolitical uncertainty, which has caused inflation to rise. However, the average home price in London has increased modestly by 0.4% annually to £529,720. Nevertheless, the fundamentals remain strong, with higher investment activity, lifestyle vibrancy, and a diverse population fueling demand, according to Sharief Ibrahim, the executive director and head of residential agency at CBRE.