AHS Properties’ acquired the landmark Dubai hotel for a whopping Dh1.1 billion
Dubai’s luxury real estate market has recorded another major deal after AHS Properties acquired the Shangri-La Dubai hotel property on Sheikh Zayed Road for an eye-watering Dh1.1 billion.
The acquisition marks one of Dubai’s largest single-asset real estate transactions in recent years, according to the company. The deal also highlights growing investor appetite for prime assets along Sheikh Zayed Road — one of the city’s most established commercial and luxury corridors.
The property was previously sold in 2020 for Dh700.2 million through an online auction linked to debt recovery proceedings involving the Al Jaber Group. The latest transaction reflects a roughly 57 per cent increase in value over six years.
The 42-storey mixed-use property includes a luxury hotel, apartments and office space.
The 26-year-old billionaire founder and CEO of AHS Properties, Abbas Sajwani, said no final decision has been made on the future of the Shangri-La Dubai asset, although the company plans to upgrade and enhance parts of the building to improve its long-term value.
What happens to Shangri-La
Sajwani said the company has not yet finalised its long-term strategy for the Shangri-La Dubai asset, but plans to enhance and reposition parts of the mixed-use property to unlock additional value.
“AHS focus is luxury real estate, whether it’s residential, commercial, or hospitality,” he said. “We see how we can enhance the project the most, and how we can get the most value-added services from them.”
Sajwani said the company is evaluating several options for the property, including renovating offices, upgrading parts of the development and improving income generation.
“This project hit all those requirements,” he said. “The strategy has many different options of things we can do, so we’re still deciding on that, but the asset was key.”
He added that the company continues expanding its Sheikh Zayed Road presence, with AHS Tower under development and another major mixed-use project planned for launch later this year.
“We have another plot, which we own, which we will launch at the end of the year,” he said. “That will be the biggest project on Sheikh Zayed Road — it’s a Dh25 billion project.” He said details of this project will be announced later in the year.
Sheikh Zayed Road land scarcity
Sajwani also said that Dubai’s prime locations are expected to continue appreciating because of limited land availability. “Dubai will just continue to grow, and the prime will always stay prime,” he said.
“There’s no more lands on Sheikh Zayed Road, and you cannot come up with a new land. So, these assets will continue to rise long term,” said Sajwani. He added that demand for premium office and residential space in the area remains strong.
The acquisition strengthens AHS Properties’ growing footprint on Sheikh Zayed Road, where it already has projects including AHS Tower and AHS City.
Sajwani also confirmed the company plans to launch another mixed-use development on Sheikh Zayed Road later this year. He described it as a Dh25 billion project currently under design.
Under Sajwani’s leadership, the firm expanded into commercial real estate, acquiring and rebranding Dubai’s long-vacant “Big Ben” tower on Sheikh Zayed Road (now AHS Tower) for $120 million.
Mixed-use developments
While the Shangri-La Dubai acquisition includes hospitality assets, Sajwani said the company is not shifting solely into hotels.
“AHS focus is luxury real estate, whether it’s residential, commercial, or hospitality,” he said. He said the company is still evaluating different strategies for the property, including renovations and upgrades to improve long-term returns.
“This project hit all those requirements,” he said, adding that the company sees “huge potential” in the asset.
Founded in 2021, AHS Properties has rapidly expanded in Dubai’s ultra-luxury property market with projects focused on waterfront and premium urban locations.
Last year, the company launched Casa AHS, a Dubai Water Canal development valued at around $750 million, featuring ultra-luxury residences including Sky Villas and Sky Mansions.
Dubai luxury market
Sajwani said Dubai’s ultra-luxury market has seen buyers taking longer to make purchasing decisions in recent months, although demand remains intact.
“We still see transactions,” he said. “It is just people are taking longer to decide.”
He added that the summer period traditionally slows activity but expects demand to strengthen again after September.
According to Sajwani, wealthy international buyers continue relocating to Dubai because of the emirate’s infrastructure, lifestyle, education system and long-term economic policies.
“People are still moving to Dubai, people are still looking for investments and looking for opportunities,” he said.
He also said Dubai’s commercial real estate segment remains undersupplied, particularly for Grade A office space.
“Commercial is very strong,” Sajwani said. “There is currently a lack of supply.”
Prime Dubai districts expected to outperform
Sajwani said Dubai’s established luxury districts are likely to remain the strongest performers in the years ahead.
He identified Sheikh Zayed Road, Downtown Dubai, Dubai Water Canal, Palm Jumeirah and Bulgari Island among the locations expected to continue attracting luxury demand.
“I think the prime will continue to rise in a big way,” he said.
He added that Dubai’s long-term population growth and tourism expansion would continue supporting demand across residential, office and hospitality sectors.
AHS Properties expects its gross development value to reach around Dh50 billion by the end of this year, according to Sajwani.
Dubai’s real estate market has largely remained resilient — but the pace of transactions, especially in the luxury segment, has slowed compared to the rapid growth seen over the past three years.
Brokers and consultancies reported that high-net-worth investors began taking longer to close deals, particularly for ultra-luxury homes above Dh20 million. Many adopted a temporary “wait-and-watch” approach amid geopolitical uncertainty.
Source: Gulf news
