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In an interview with Zawya Projects, the company’s Chairman Mustafa Al Kaissi shared insights on their strategy and upcoming projects in Dubai in Business Bay and Al Jaddaf.
Building upon its 15 years of experience in the UAE’s real estate sector, KASCO Group recently announced its strategic entry into property development with a project portfolio valued at AED 1.2 billion ($327 million).
Mustafa Al Kaissi, Chairman of KASCO Developments, emphasised that the Groups real estate experience, combined with 30 years in industries like shipping and marine services, have provided a strong foundation in project execution, financial management, and strategic planning.
“We are now taking this experience and know-how to navigate the complexities of property development,” he said in an interview with Zawya Projects.
He said KASCO Developments is initially launching three residential projects—Onda, Val, and Volna—in Business Bay and Al Jaddaf but didnt elaborate on building specifications, construction or delivery timelines. The company aims to deliver and sell 1 million square feet of residential space by 2025.
Al Kaissi highlighted the firm’s focus on creating lifestyle-driven properties in a competitive market.
“Our focus goes beyond just creating high-end properties. We believe a home should promote wellness and quality living, encapsulated in our philosophy, Inspire Your Soul," he said.
He underlined the upward trajectory of Dubai’s real estate market, supported by major infrastructure projects and growing demand from high-net-worth individuals (HNWIs), noting that he expects property values to increase by 5-7 percent by 2025.
“This growth is backed by ongoing population expansion, lower mortgage rates, and very strong investor interest,” he explained.
He also pointed out that prime areas such as Dubai Marina and Downtown Dubai are expected to maintain high rental yields.
“The demand for rental properties continues to grow, driven by a steady influx of expatriates and a robust tourism sector,” he said.
Excerpts from the interview:
KASCO Developments launched with an initial investment of AED 1.2 billion for its first three projects. Can you provide more information about these projects?
Our initial investment of AED 1.2 billion reflects our confidence in the UAE real estate market and our commitment to delivering exceptional projects. The first three projects – Onda, Val, and Volna – are strategically located in prime areas of Business Bay and Al Jaddaf.
Each project is designed to embody our core values of integrity, quality, and creativity, offering innovative architectural designs, spacious living spaces, and community-centric amenities.
Our vision to develop and sell one million square feet of residential projects by 2025 aligns with these initiatives, as we aim to create a diverse portfolio that meets the evolving needs of our clients while contributing to the UAEs dynamic real estate landscape.
By focusing on quality and the living experience, we aim to attract a wide range of buyers and investors, ensuring that our developments not only exceed current market demands but also remain attractive long into the future.
Why have you chosen Business Bay and Al Jaddaf for the first set of projects?
Business Bay and Al Jaddaf are prime locations that offer a unique blend of accessibility, lifestyle, and investment potential.
Business Bay is well known for its vibrant business environment, proximity to major commercial hubs, and stunning waterfront views, making it attractive to professionals and expats. It is also coming to full fruition now so its popularity will only increase,
Al Jaddaf, on the other hand, is emerging as a cultural and residential hotspot, with its proximity to key attractions and a focus on community living. Both areas appeal to our target buyers who seek modern living spaces that offer convenience, connectivity, and a high quality of life.
What is your strategy in terms of design and construction?
Our strategy focuses on an integrated approach to design and construction, balancing aesthetics, functionality, and the living experience.
By partnering with top architects and designers, we create innovative spaces that reflect modern lifestyles while maintaining the highest quality standards.
We also prioritise community interaction and well-being, incorporating green spaces and communal areas into our developments.
How are you incorporating sustainability into your projects?
Sustainability and energy efficiency are at the core of our development philosophy – many may say that, but we mean it from our heart. We are committed to implementing sustainable building practices, utilising eco-friendly materials, and incorporating energy-efficient technologies in our projects. This not only reduces the environmental impact but also enhances the long-term value of our properties.
Are you seeing an increase in construction costs in the UAE? What are your expectations on tender prices?
Yes, construction costs in the UAE have certainly been going up, driven by factors such as rising material prices and labour shortages. As a result, we anticipate that tender prices may continue to rise in the short term.
However, we are actively working with our subcontractors and suppliers to manage these costs effectively while maintaining our commitment to quality and timely delivery.
Developers in Dubai may have to contend with rising construction costs and delays as a large pre-sales pipeline is slated for completion over the next two to three years, according to Moody’s. How are you addressing market concerns about supply chain challenges (material and labour) and contractor availability?
To address these concerns, we have already proactively engaged with our supply chain partners to secure materials and labour in advance, ensuring that we have the necessary resources to meet our project timelines.
We are also diversifying our supplier base to mitigate risks associated with material shortages and exploring partnerships with local contractors to enhance labour availability. Additionally, we are implementing efficient project management practices to streamline operations and minimise delays.
What is your outlook on the real estate market in the UAE?
The market has been on an upward trend, with Dubais real estate market shattering records, with AED142.5 billion in deals during the third quarter of 2024, according to market reports. This represents a 34.5 percent increase compared to the same period last year.
Several factors are driving this growth, including strategic infrastructure projects, increased demand from HNWIs, and technological innovation. The UAE is also positioning itself as a leader in sustainability, attracting even more investors.
We do not expect the growth to slow down, but we understand the risk profile. Our organisation and capital structure are designed to withstand and thrive under adverse market conditions.
Will foreign investment continue to exercise significant influence on the real estate market?
Absolutely. Foreign investment has been a driving force in the UAEs real estate market, and we expect this trend to continue. The countrys strategic location, favorable business environment, and attractive lifestyle options make it a prime destination for international investors—especially as much of the rest of the world grapples with economic, political, or social turmoil.
As the market evolves, we anticipate that foreign investment will play a crucial role in shaping the future of real estate development, driving innovation, and enhancing overall market dynamics. |
