Investment

In the first quarter of 2022, Arabesco Holding identified a strategic investment opportunity in the heart of Al Nahda, Sharjah — a maturing residential zone on the edge of Dubai, known for its growing population, strategic location, and affordable housing appeal. A neglected mid-rise residential building with outdated infrastructure and just 45% occupancy had been stagnating on the market for months. While other investors saw risk, Arabesco’s acquisition team saw untapped potential. Backed by thorough market research, neighborhood analysis, and risk modeling, we initiated negotiations for an off-market acquisition. By leveraging our deep network and market expertise, we secured the asset at a 17% discount below market value, giving us immediate equity upside and a healthy margin for redevelopment. Our investment thesis was built around three pillars: capital appreciation, rental yield optimization, and operational efficiency. The building had not been upgraded in over a decade and lacked features that modern tenants expect — smart entry systems, efficient HVAC, covered parking, and contemporary interiors. We began by commissioning a complete structural audit, followed by a phased renovation plan led by our in-house development team. Sustainability was a core driver from day one. We replaced traditional lighting with energy-efficient LED fixtures, installed rooftop solar water heaters, upgraded to double-glazed windows to improve insulation, and implemented greywater recycling systems. These measures not only reduced environmental impact but significantly cut operational costs — key to boosting net yield and long-term value.

In parallel, Arabesco’s branding and marketing teams repositioned the asset under a new identity — one that appealed to urban professionals, small families, and remote workers. We redesigned each unit to feel light, efficient, and modern — introducing smart home features, modular furniture options, and fiber-optic internet connectivity. Common areas were revitalized with improved security systems, concierge desks, and co-working nooks — an essential touch for today’s hybrid workforce. We adopted a dual leasing strategy, offering long-term annual rentals and premium-furnished short-term units via reputable platforms. This hybrid approach helped us ramp up occupancy from 45% to 97% in just 11 months — one of the fastest turnarounds in our portfolio. From an investment perspective, the project exceeded expectations on all fronts. The average rent per unit increased from AED 2,500 to AED 3,800, representing a 52% uplift in gross rental income. The building’s valuation climbed from AED 21 million to AED 30.2 million within the first year post-renovation. Investors earned a net annualized ROI of 18.6%, outperforming our initial forecast of 14%. With reduced energy usage, streamlined management systems, and strong occupancy, the asset now operates with one of the healthiest expense-to-income ratios in our portfolio. Furthermore, the building has now qualified for Sharjah’s green property certification — adding prestige and long-term value. Beyond financial performance, this case study embodies Arabesco Holding’s core strengths: vision, discipline, execution, and innovation. It’s a living example of how we merge real estate fundamentals with forward-thinking strategies — blending traditional asset appreciation with modern ESG compliance and tenant experience. As investor expectations shift toward transparency, sustainability, and scalability, Arabesco’s model continues to evolve — proving that real estate investment, when done right, can be profitable, resilient, and purpose-driven. This project is now the prototype for several upcoming redevelopments across Sharjah and Northern Emirates, as part of Arabesco’s regional asset repositioning strategy. It also reinforced investor confidence, attracting new capital from regional partners and institutional players. In the words of one investor, "Arabesco doesn't just manage properties — they engineer growth. What they delivered in Sharjah is proof that experience, strategy, and execution can completely transform the value of a forgotten building."