On the waterfront

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United Holdings is a new player in Dubai's real estate investment market.

Sean Cronin talks to CEO Abbas Kiani to discover why he thinks it's never too late to start investing in Dubai bricks and mortar, and why he is looking to waterfront real estate locations across the emirate.

The view from one side of United Holdings' 34th floor Emirates Towers office is the real estate phenomenon of Dubai's downtown Sheikh Zayed Road - super-tall gleaming new skyscrapers projecting the economic confidence and ambition of the emirate.

The view from the other side is of sparsely developed land that merges with the desert on the horizon. It is this view that represents the opportunity for this fledgling investment company that plans to spend as much as US$1.8bn on property projects this year.

Both sides of the building would have looked similarly featureless as recently as 15 years ago, when most of the structures that today cast their shadow over Dubai's main highway were not even blueprints on architects' drawing boards.

That is why United Holdings CEO Abbas Kiani does not seem too perturbed about the prospect of entering the real estate market so late in what is effectively Dubai's first major development cycle.

On the wall behind him is the UAE's first and only Olympic gold medal - won by HH Sheikh Ahmed Bin Hasher Al Maktoum at the 2004 Athens Games for the double trap shooting event. Kiani acquired it during the Dubai Cares charity auction.

Back in 2004, the real estate market in Dubai was starting to boom with fewer developers and fewer finished buildings than today. That does not worry Kiani.

We can't wait for prices to rise or fall," says the youthful Kiani, dismissive of the suggestion that the local real estate investment market has topped out.

"The market demands you move fast and aggressively," he says. But is the former Dubai Properties and Amlak executive arriving late to the real estate party?

"I really disagree with that. We are not late. If you look at the trends in the market, the population of Dubai is forecast to grow to 9 million people by 2030 which is growth of almost 8.9% per annum.

He believes this fast-growing population and influx of foreigners will help sustain demand for apartments, even in a tightening lending environment.

"In addition, we have the new Jebel Ali airport coming as well as the extension of the current airport and we have strong government support of the tourism industry, all of which is encouraging more people to come here," he says.

Nonetheless, these are unsettled times for real estate developers in the emirate. Dubai property prices may start to fall next year according to research from EFG-Hermes Holding, which predicts that average prices will rise by between 5% and 10% in 2008, down from between 10% and 15% last year.

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