Abu Dhabi alternative investment manager Lunate is establishing a $1 billion joint venture with Brookfield focused on residential real estate in the Middle East. This announcement was made in a statement on Tuesday, outlining the venture’s aim to develop high-quality build-to-sell and opportunistic buy-to-sell residential assets across the UAE, Saudi Arabia, and other regional markets. A dedicated team will be created to manage and develop these assets.

Lunate, which manages $110 billion in assets, plans to make a significant cornerstone investment in this venture. The company intends to use its extensive regional network and capabilities to enhance the venture’s commercialization and fundraising efforts.

This joint venture follows Lunate’s acquisition of a 24.5% equity interest in ICD Brookfield Place, a prominent commercial tower in Dubai’s financial center, which occurred in March 2024.

Dubai, known as the Gulf’s business and tourism hub, has experienced a property boom since the pandemic, driven by foreign investment and government-led residency reforms. According to Knight Frank, residential real estate values in Dubai surged nearly 70% over the four years leading to December 2024. Abu Dhabi is also seeing increased demand from foreign buyers, attributed to business activities from hedge funds, family offices, and cryptocurrency firms.

In Riyadh, the capital of Saudi Arabia, apartment values have risen by 75% in the same four-year period, as reported by Knight Frank research.