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Nisus Finance Expands Institutional Footprint in Dubai With AED 220.76 Million Residential Acquisition

Institutional Capital Signals Confidence in Dubai’s Residential Market

Nisus Finance Services Company Limited has completed its largest real estate investment in the UAE with the acquisition of Lootah Avenue, a residential asset located in Dubai Motor City. The total investment value of AED 220.76 million includes acquisition costs, transaction expenses, and refurbishment capital. The transaction reflects growing institutional confidence in Dubai’s mature residential segments, particularly assets offering immediate income generation and operational stability.

Overview of the Lootah Avenue Asset

Completed in 2021, Lootah Avenue is a fully occupied freehold residential development situated on a 13,533.09 square metre plot. The building comprises 273 residential units, including studios, one-bedroom apartments, and two-bedroom apartments. Supporting amenities include a medical centre and eight retail outlets, reinforcing the asset’s mixed-use appeal and tenant convenience.

Building Specifications and Income Profile

The development rises across two basement levels, a ground floor, 23 residential floors, and a rooftop level. Lootah Avenue offers a Gross Floor Area of 28,305.72 square metres and a Net Sellable Area of 24,159.51 square metres. Its full occupancy and diversified unit mix position it as a stable, yield-oriented asset within an established residential community.

Fund Structure and Regulatory Framework

The acquisition was executed through the Nisus High Yield Growth Fund, a DIFC-based property fund with an additional feeder structure in GIFT City. This structure enables participation from Indian investors while maintaining DIFC regulatory oversight. The transaction is anchored by Nisus Finance in partnership with global institutional funds and is backed by Emirates NBD, reinforcing institutional-grade governance and capital strength.

Dubai Transaction Momentum Provides Market Context

The deal coincides with a period of exceptional activity across Dubai’s real estate market. Property transactions reached AED 624.1 billion during the first eleven months of 2025, supported by strong off-plan absorption and continued investor demand. Established residential locations continue to attract capital seeking predictable income streams and long-term value stability.

Motor City as a Resilient Residential Micro-Market

Motor City has emerged as a resilient residential and commercial micro-market within Dubai. The area has recorded stronger year-on-year price growth compared to broader market averages, supported by community maturity, tenant retention, and limited new supply. Its positioning complements established hubs such as Business Bay and lifestyle-oriented districts like Dubai Hills Estate, which also benefit from integrated planning and stable demand.

Leadership Perspective on Institutional Strategy

According to Nisus Finance leadership, the transaction demonstrates the firm’s ability to deliver structured investments under DIFC regulation while partnering with global institutional capital. The acquisition highlights disciplined asset selection, governance standards, and a long-term commitment to the investor base supporting the fund’s expansion across international markets.

Strategic Scale-Up of UAE Portfolio

The Lootah Avenue acquisition more than doubles the combined value of Nisus Finance’s existing UAE portfolio. The fund has attracted participation from institutional fund managers, family offices, and ultra-high-net-worth individuals from the GCC and India. This diversification of capital sources supports the firm’s ambition to scale assets under management while maintaining geographic balance.

Focus on Ready, Income-Generating Assets

Nisus Finance’s Dubai strategy prioritises ready, rental-yielding assets rather than development-stage exposure. This approach aligns with investor preference for risk-mitigated entry points amid sustained rental demand. Established residential communities continue to experience demand that outpaces supply, supporting income stability and valuation resilience.

Resale Market Strength Reinforces Asset Appeal

Resale transaction volumes across Dubai have shown consistent growth, reflecting buyer appetite for completed assets with proven rental performance. Participation from both end users and smaller landlords highlights the depth of demand within mature communities. This trend supports pricing stability and reinforces the appeal of fully operational assets such as Lootah Avenue.

Institutional Preference for Governance and Transparency

Institutional investors increasingly favour markets offering regulatory clarity, escrow frameworks, and enforceable ownership rights. Dubai’s real estate environment continues to meet these criteria, contributing to capital inflows across residential districts including Dubai Marina and Downtown Dubai, where liquidity and transparency underpin long-term performance.

Developer and Asset Quality as Risk Filters

Across Dubai, asset selection increasingly depends on build quality, maintenance standards, and tenant appeal. Developments delivered by established developers such as Emaar, DAMAC, and Sobha Realty tend to demonstrate stronger rental retention and resale liquidity. Large-scale master planning by Nakheel and lifestyle destinations by Meraas further support institutional investment strategies.

Global Expansion and Asset Management Capabilities

Nisus Finance Services Company Limited is a publicly listed real estate investment firm headquartered in India, specialising in urban infrastructure financing and private capital markets. As of H1 FY 2026, the firm manages assets worth INR 19.06 billion. Its expansion across Southeast Asia, Europe, and the Middle East reflects a strategy focused on scalable platforms and regulated investment structures.

Long-Term Outlook for Institutional Capital in Dubai

The acquisition of Lootah Avenue underscores a broader trend of institutional capital shifting toward ready, income-producing assets within Dubai’s residential market. Limited new supply in established communities, combined with steady end-user demand, continues to support asset values and rental performance.

Advisory Perspective for Investors

As institutional activity increases, access to local insight and market intelligence becomes essential. Aurantius Real Estate supports investors with data-driven analysis, location-specific insights, and advisory-led access to Dubai’s established residential assets. Through a disciplined approach to asset selection and market strategy, Aurantius Real Estate helps investors navigate opportunities shaped by institutional participation and long-term market fundamentals.

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