Union Properties reports 68% revenue surge as Dh4 billion project pipeline fuels expansion

Union Properties reports 68% revenue surge as Dh4 billion project pipeline fuels expansion

Union Properties is advancing plans for a new Dh2 billion residential development as the Dubai-based developer capitalizes on a 68% revenue increase during the first half of 2026, supported by an approximately Dh4 billion project pipeline and strong demand for low-density housing across the emirate.

The planned master development will feature about 167 townhouses, villas and bungalows and is currently progressing through Dubai's approval and permitting process. The project aligns with market trends favoring family-oriented properties, as Dubai's residential market recorded 79,281 sales worth Dh221.4 billion in the first half of 2026, with villas and townhouses outperforming apartments due to sustained demand for space and low-density living.

Strong financial performance

Revenue for the first six months of 2026 reached Dh529.3 million, compared with Dh316 million during the same period last year. Gross profit rose 41% to Dh107 million from Dh75.6 million, driven by higher revenue, operating efficiencies and continued project execution.

Second-quarter revenue increased 69% year-on-year to Dh257.8 million, compared with Dh152.4 million in the corresponding period of 2025. Gross profit reached Dh48.6 million during the quarter.

The developer recognised Dh101.6 million in development revenue during the first half, with Dh3.87 billion in potential development revenue remaining to be recognised through the end of 2028, providing multi-year visibility over earnings.

Strategic positioning in growth market

Union Properties, established in 1987 and listed on the Dubai Financial Market in 1993, has delivered over 10,000 residential, commercial and retail units across iconic developments including Motor City, Green Community, Uptown Mirdif, Index Tower and the Ritz-Carlton DIFC.

The company's expansion comes as Dubai's population is projected to reach 4.7 million in 2026, with approximately 175,000 to 225,000 new residents expected to arrive, driving strong demand for housing. Market forecasts indicate villas and townhouses will appreciate by 17.7% in 2026, significantly outperforming apartments projected at 7.4% growth, as such properties account for less than 20% of Dubai's total residential stock.

Dubai real estate transactions increased 31% in the first quarter of 2026, with foreign investment value reaching Dh148.35 billion, up 26% and reflecting strong international investor confidence in the emirate's property market.

Development pipeline and execution

Construction continues at Union Properties' Takaya and Mirdad developments, with the company's in-house contracting business, Tetra Edge, managing execution and project margins. The Mirdad development, launched in October 2025, comprises four towers with 1,087 apartments in Motor City and is valued at Dh2 billion, with construction scheduled for completion by the fourth quarter of 2028.

Eng. Amer Khansaheb, Chief Executive Officer and Board Member of Union Properties, said the company has strengthened its balance sheet, enhanced operational efficiency and built a high-quality development pipeline now translating into tangible financial results.

With approximately Dh4 billion of projects under development, Dh3.87 billion in potential development revenue with higher margins yet to be recognised, and a strong liquidity position, we have clear visibility over future earnings and significant capacity to pursue further growth.

Financial transformation

Union Properties maintained average cash balances exceeding Dh400 million during the first half, providing funds for construction, project launches and further expansion while retaining a prudent capital structure.

The company completed a significant debt restructuring journey, reducing legacy debt from Dh1.47 billion at the end of 2022 to Dh575 million by December 2024, while lowering financing costs from Dh114 million in 2023 to Dh32 million in 2024. In July 2025, Union Properties concluded its comprehensive recovery plan by signing a conditional sale agreement valued at Dh700 million for a Motor City project, enabling it to fully settle legacy debt.

Management said it will continue focusing on accelerating project delivery, expanding the company's portfolio and increasing revenue and profitability over the coming years as the developer transitions from financial restructuring to a growth phase.