After several years of restructuring and recalibration, Union Properties is officially back on the offensive. The Dubai-based developer is showing strong signs of recovery—posting healthy Q1 results, significantly reducing legacy debt, and preparing for a fresh wave of residential project launches.
In the first quarter of 2025, Union Properties posted a notable 18.2% increase in revenue, reaching AED 163 million, while gross profit jumped 25.3% to AED 42.8 million. The company attributes this strong performance to improved operational efficiency, rising market demand, and positive contributions from its subsidiaries.
A Leaner, Stronger Union Properties
Perhaps the most impressive milestone this quarter? The company successfully repaid AED 179 million in bank debt, with another AED 159 million due in Q2. This follows a massive AED 723 million debt reduction in 2024, part of Union Properties’ long-term financial restructuring strategy aimed at improving liquidity and sharpening focus on growth.
“This solid start to 2025 reinforces the strength of our business model and reflects the trust placed in us by our stakeholders,” said CEO Eng. Amer Khansaheb. His comments echo a sentiment of regained momentum and renewed ambition.
Fuelled by Land Sales and Development Revival
In recent months, the company secured AED 1.3 billion through strategic land sales—a key component of its five-year growth plan launched in 2023. The proceeds are being funneled directly into debt reduction and funding the next phase of real estate development.
One of the most exciting developments is the launch of Takaya, a residential project in Motor City, marking Union Properties’ return to off-plan project development after a long hiatus. And that’s just the beginning—two more projects are said to be in the pipeline, with the company holding onto 10 million square feet of gross floor area (GFA) ready for future developments.
Rising Costs, But Strategic Spending
While administrative expenses rose in Q1, Union Properties attributes the increase to higher marketing and sales costs—signaling a proactive push toward project pre-launch activities. The company is also exploring new ways to enhance liquidity and maximize asset value, staying nimble in Dubai’s dynamic and competitive property market.
Why This Matters for Investors and Buyers
Union Properties’ financial rebound and return to development mean more residential options on the horizon—especially in popular suburban hubs like Motor City. For buyers, this could translate into access to modern, well-priced properties in emerging communities. For investors, it signals that the company is not just stabilizing, but poised to grow in sync with Dubai’s real estate momentum.
Final Thoughts
Union Properties is writing a new chapter—one focused on debt discipline, strategic expansion, and development-driven growth. With its house in order and new projects underway, the developer is positioning itself as a serious contender in Dubai’s next real estate cycle.
