Emaar Properties, the Dubai-based real estate titan, is selling off its India business, with the Adani Group a potential buyer.
In a statement, Emaar confirmed a report from Mint, stating that it was in talks with “a few groups” in India, including the Gautam Adani-led conglomerate, to sell a stake in its local business.
Details of the deal, including the valuation, were not yet finalized, said the company, best known globally as the developer behind the Burj Khalifa and the Dubai Mall.
Mint reported that the deal could be for at least 70%, and potentially all of the developer’s India business, for as much as Rs 5,000 crore ($600 million).
Shares of Emaar, traded on the Dubai Financial Market, have risen 1.2% since the sale was first reported on Wednesday.
Adani Group, an Indian conglomerate known for operating in diverse sectors from mining and power to renewable energy and real estate, has not publicly commented on the potential sale. The company did not respond to a MONIIFY request for comment by time of publication.
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A rocky road
Emaar – whose largest shareholders are Dubai’s ruler Mohammed bin Rashid Al Maktoum and the UAE’s sovereign wealth fund – originally entered the Indian market with sky-high ambitions in 2005, partnering with local developer MGF to establish Emaar MGF.
But the marriage soured fast. Regulatory challenges, corporate drama, and missed deadlines left Emaar chasing returns in a market infamous for its bureaucracy and red tape.
Emaar separated from MGF in 2016, taking direct control of its assets. It now has a portfolio of residential and commercial properties in Gurugram, Mohali, Lucknow, Jaipur and Indore, according to its website.
As recently as February last year, Emaar India said that it plans to launch close to 8 to 10 million square feet of developments, with an investment of about a billion dollars over the next four to five years.
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Why sell?
Clearly something has changed in Emaar’s thinking around the Indian market. But, for now at least, it’s not saying what.
It’s unlikely to be liquidity concerns though. The company, fresh off a robust 2024, raked in record profits and revenues thanks to Dubai’s property boom.
Revenues for the first nine months ending 30 September 2024 stood at 23.8 billion dirhams ($6.5 billion), a 30% hike compared to the same period in 2023.
Meanwhile, India’s real estate sector has been regaining steam after years of sluggish growth, thanks to government incentives and a booming demand for urban housing.
Emaar India’s total income for FY24 reached Rs 2,757 crore, up from Rs 1,765.8 crore the previous year, Mint said.
Emaar may be seeking to capitalize on rising valuations, knowing the Indian market can be a double-edged sword — especially for foreign players battling stiff competition and local laws. The latter, in particular, is something Emaar CEO Amit Jain knows a thing or two about, having been briefly detained by Indian police on a visit to the country in 2022.
As for how the deal plays out? Watch this space for details.
Edited by Tim Hume. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
