Permira and Blackstone invest in Dubai's real estate through a Property Finder agreement

Propertyfinder.ae

The investors are purchasing a portion of the stake in the online portal Property Finder, which is currently owned by General Atlantic, a private equity firm. According to a source familiar with the transaction, this deal values Property Finder at approximately $2 billion.

Permira, which has previously invested in online classifieds platforms in various countries, is taking the lead in this investment, contributing $350 million to the deal.

Property Finder primarily operates in the United Arab Emirates, where Dubai, recognized as the region's commercial center, is experiencing its third property market surge since it opened to foreign investments in the early 2000s.

Data analytics firm Reidin reports that average sale prices per square foot in Dubai have increased by 68 percent over the past six years.

Increasing population in the UAE

Michael Lahyani, the founder of Property Finder established in 2007, stated that the primary factor behind the growth was the increasing population of the UAE. According to official estimates, Dubai's population exceeded 4 million this month, having risen by 20 percent over the past six years.

Lahyani, who continues to serve as the chief executive and holds shares in Property Finder, anticipates that real estate values in Dubai will rise by over 20 percent annually for “another year or two” before tapering off to a “more sustainable figure.”

However, not everyone believes that the surge in Dubai's property market can persist. The rating agency Fitch has predicted a decline in the latter half of this year, anticipating a surge of new homes entering the market.

Dubai's property booms

The city has experienced two prior property booms that ultimately led to downturns. The initial bubble collapsed after the global financial crisis of 2008, while a subsequent surge—driven by regional investors seeking a secure investment following the Arab Spring in 2011 in 2015

General Atlantic made its initial investment in Property Finder, which also has operations in Egypt, Saudi Arabia, Qatar, and Bahrain, during another market slump in 2018.

Lahyani contended that the current state of the property market is markedly different, stating, “the property market is in a very different shape . . . it is not leveraged like it was back in the day.” He further noted that the growth is being fueled by increasing sales volumes.

In the first half of this year, Dubai’s land department recorded a total of 125,538 real estate transactions, reflecting a 26 percent rise compared to the same timeframe in 2024.

Permira and Blackstone highlighted the attractive rental yields and low vacancy rates in Dubai’s real estate sector, emphasizing that classified businesses typically thrive even during economic downturns.

David Erlong, a partner and global co-head of consumer at Permira, remarked that there is significant potential for classified businesses to expand in the UAE, as they are utilized by a smaller number of consumers compared to more established markets.

“We have strong confidence in the Gulf region, particularly the UAE and Dubai,” stated Paul Morrissey, head of Blackstone Growth in Europe, adding that the firm believes the region's economic growth “has a long way to go.”

Chris Caulkin, General Atlantic’s technology lead in the EMEA region, mentioned that the private equity firm has “retained a very, very large portion of our investment. However, we also believe it’s prudent for the company to begin incorporating a wider shareholder base.

Dubai's bold choice

Dubai's bold choice to swiftly reopen amid the pandemic in 2020 positioned it as one of the rare cities available to tourists and business travelers, sparking a resurgence of interest in its real estate market. At the same time, modifications to the UAE's visa policies have motivated foreign workers. Who make up the majority of the nation’s population, to extend their stays. Additionally, Dubai's property sector has gained from an influx of individuals escaping the fallout from Russia's invasion of Ukraine, while the emirate's acceptance of cryptocurrency attracted numerous newly wealthy bitcoin investors looking to purchase homes.