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

Aldar Properties' subsidiary London Square intends to construct around 9,000 homes within the next five years in London's capital, as the demand continues to remain strong. The new residential units will be developed at approximately 30 sites, according to Scott Brown, chief financial officer of London Square. Out of these, more than 3,600 properties will be available for purchase, while 1,538 will be designated for build-to-rent schemes, and an additional 3,575 will be offered in the affordable housing segment, supported by government incentives, he stated during a presentation.

Since the establishment of London Square in 2010, the company has successfully delivered 5,000 homes across 46 sites with a combined development value of £2.9 billion ($3.8 billion). Brown expressed that under the Aldar banner, sales have surpassed historical performance and are outperforming their competitors in the current market.

London Square, which specializes in revitalizing former industrial locations, has been involved in projects such as the Nine Elms development, featuring over 750 residential units and 21,500 square feet of commercial and retail space. Additionally, the company is transforming the former Surrey County Council headquarters into a premium 292-home development, incorporating the restoration of historic structures.

The company aims to complete 600 homes this year, up from 398 in the previous year, with a sales backlog of £1 billion by the end of 2026. Brown informed The National in London that most of this year's construction will focus on the affordable market, with about 30 percent of the projects being build-to-rent. He did not disclose the company's total sales expectations for the year.

London Square reported sales of £251 million for the first six months of the current year, a 236 percent increase year-over-year, driven by three new developments - Bermondsey Phase 3, Wimbledon Bridge House, and Ransome's Wharf. International demand for London's property market hails mainly from investors in the Middle East, with UAE buyers constituting 10 to 15 percent of total international sales.

China, Singapore, and Turkey also exhibit significant interest in London's real estate. Naomi Minegishi, international sales director at London Square, attributes the growth to investment opportunities, a safe haven for capital, and a robust legal framework. Families are drawn to the city due to the availability of a second home for summer vacations and to accommodate their children's education needs.

Despite geopolitical uncertainties and rising inflation impacting London's property market, fundamentals remain robust, driven by increased investment activity, a vibrant lifestyle, and a diverse population, according to Sharief Ibrahim, executive director and head of residential agency at CBRE. London Square projects home transaction volumes to reach between 6,000 and 7,000 this year and 7,500 to 8,000 next year.