Dubai is moving forward with the major $1.4 billion Water Gardens Project as the emirate’s property market navigates changing investor demand and uncertainty across the wider West Asian region.
The development, known as Water Gardens, is being led by H&H Development and will introduce a mix of hotels, residential properties and Grade A office spaces to Dubai’s financial district. The project reflects continued investment in the emirate’s commercial and residential infrastructure despite recent market pressures.
According to reporting by Bloomberg, construction has started on the four-building project, with around 30,000 workers reported to be on site. The development is expected to be completed before the end of 2028.
Water Gardens to Expand Dubai’s Commercial and Residential Offering
Water Gardens is planned as a mixed-use development combining hospitality, residential and business facilities. Its two hotels, residential units and office towers are expected to add to Dubai’s supply of premium accommodation and commercial space.
The project also highlights the continued development of Dubai’s financial district, where demand for high-quality office environments and well-connected residential communities remains an important part of the real estate landscape.
Property Market Faces Slower Sales and Higher Construction Costs
The investment comes at a time when Dubai’s property sector is experiencing a slowdown in sales activity amid regional geopolitical uncertainty. According to Bloomberg’s reporting, H&H Development recorded a decline of at least 50% in sales transactions between March and September 2026 compared with the same period a year earlier.
Despite the slowdown, demand for premium properties has continued. The developer reported that approximately 85% of the branded residences at Water Gardens had already been sold, with prices exceeding AED 8,000 per square foot.
Rising construction expenses are another challenge for developers. H&H Chairman Shahab Lutfi told Bloomberg that construction material costs had increased by around 15%, adding pressure to development budgets.
What the Project Means for Dubai Real Estate
Water Gardens reflects Dubai’s longer-term ambition to strengthen its position as an international destination for finance, business and luxury living. By combining office space, hospitality and residences within one development, the project is designed to serve businesses, residents and visitors in the heart of the Dubai International Financial Centre (DIFC).
Although the market is facing near-term challenges, continued investment in major developments highlights the importance of prime commercial locations and high-quality residential offerings in Dubai’s real estate landscape.
For investors, the project also illustrates the need to assess individual developments carefully, considering location, pricing, completion timelines and market demand rather than relying solely on broader market trends.
Source and Attribution: This article is an independently written summary based on reporting by Economic Times and official information published by Dubai International Financial Centre.
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