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While some investors paused, AHS Properties closed an AED 1.1 billion acquisition of the Shangri-La hotel on Sheikh Zayed Road and announced an AED 25 billion mixed-use development on the Dubai Water Canal, set to launch in Q3 2026. The purchase and the project announcement came within days of each other.
AHS founder and chief executive Abbas Sajwani was direct on the rationale. "It was a very key trophy asset and the location is second to none," he said. "The whole idea was to acquire it and expand our footprint." On the timing, he added: "We purchased the Shangri-La property … 10 days ago — that shows confidence in the market."
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The Shangri-La is a 42-floor asset spanning almost 93,000 square meters on Sheikh Zayed Road, comprising a hotel, offices, residential units, and food and beverage outlets. It was acquired from Mismak, a unit of First Abu Dhabi Bank, and funded through a mix of debt and equity. AHS has yet to decide whether to refurbish the building or keep it as it is.
This is the second Sheikh Zayed Road tower AHS has acquired and repositioned. The first, bought last year in a $120 million deal, was relaunched as AHS Tower this year and has generated more than $700 million in sales. The company has sold over $2.5 billion in properties since its founding five years ago, with those projects now in active handover. The AED 25 billion Water Canal development—on one of the largest plots on Sheikh Zayed Road, positioned directly on the canal—will include residential units, offices, and a hotel. Once launched, AHS Properties' total development portfolio reaches AED 50 billion.
Dubai recorded AED 252 billion in property transactions in Q1 2026, up 31 percent year-on-year, with 60,303 transactions signed in the quarter, a 6 percent annual increase. Demand has remained active across Europe, India, Russia, and Far Eastern markets. Sajwani pointed to a $30 million apartment sale within the past month as evidence the top end of the market is still transacting: "That shows the demand is continuing."
At the valuations level, Dubai recorded its second consecutive monthly decline in April, with villa values down 1.7 percent and apartment values down 2.2 percent month-on-month, according to ValuStrat. Set against transaction volumes still running 31 percent ahead of last year, that reads as a market absorbing near-term regional uncertainty rather than signaling a structural reversal.