Indian tycoon to invest $1bn into Dubai real estate sector
RP Group of Companies to build four new projects in Dubai, including 278,709sqm mixed use development
The resurgence of the Dubai property market and the city’s Expo 2020 win has caused a Non Resident Indian to invest more than $1 billion into the real estate sector.
Dr Ravi Pillai, chairman of the RP Group of Companies, has said that it plans to build four new projects, which includes a 278,709sqm mixed-use development on Sheikh Zayed Road that will house a five-star hotel, serviced apartments, residences and a retail project.
Other new projects include a five-star luxury hotel in Dubai Marina, which will be operated by Crowne Plaza, a four star hotel in Bur Dubai, which will be operated by India’s ITC Group. Finally, a serviced apartment complex – close to Downtown Dubai – will also be built.
Property prices in Dubai have risen by more than 20% in 2013 and are expected to increase by another 10% to 15% this year. Meanwhile, with the run up to Expo 2020, Dubai is expected to see the total investment in infrastructure-related projects reach $6.80 billion.
The Expo itself is estimated to inject more than $38.11 billion into Dubai’s Gross Domestic Product, creating 277,000 new jobs and drawing over 25 million visitors to the country.
“This year, the focus of our expansion programmes is to further strengthen our footprint both in oil and gas and non-oil sectors, thus effectively partnering with the growth strategy of the regional governments.”
“This is reflected in our new developments in Dubai, which is currently further investing in the hospitality sector as part of the infrastructure development programmes in preparation to host the World Expo 2020,” said Dr Pillai.
RP Group will also be opening two new offices in Kuwait and Oman, where it is finalising contracts within the oil and gas sector, as well as two hotels in Saudi Arabia.
“We will build two 5-star deluxe hotels in Jubail and Dammam, Saudi Arabia, where the overall business growth has led to stronger demand for hotels and serviced apartments.”
Dr Pillai added their expansion plans are envisaged to support the local economies and catalyse social and economic development and is expected to create nearly 25,000 new jobs in the Gulf.
