Union Properties: DHCC Success Story – Healthcare City Development Case Study

By Dr. Pooyan Ghamari

Executive Summary

Union Properties has emerged as a pivotal player in Dubai's healthcare real estate landscape, leveraging its expertise in mixed-use developments to contribute significantly to the Dubai Healthcare City (DHCC) ecosystem. Established in 1987, the company has delivered over 50 projects, with a focus on DHCC's Phase 1 in Oud Metha, where it has developed key residential and commercial assets amid the free zone's 12.5% annual growth. In 2025, Union Properties reported AED 7.8 billion in sales, driven by DHCC-linked properties like serviced apartments and medical office spaces that support the zone's 481 facilities (195 medical). With a 93% on-time delivery rate for post-2022 launches and strong tenant retention (92%), Union exemplifies reliability in healthcare-adjacent real estate. For the 2026–2030 cycle, its DHCC assets project 6.5–8.5% net yields and 7–9% capital growth, fueled by the AED 1.3 billion Phase 1 expansion. The critical action today: Target ready and near-completion residential units in DHCC's Oud Metha cluster for stable rental income from medical professionals and Golden Visa-eligible investments.

Company and Market Background

Union Properties PJSC, founded in 1987, is one of Dubai's longest-standing listed developers, renowned for pioneering mixed-use communities that integrate residential, commercial, and healthcare elements. Headquartered in Dubai and listed on the Dubai Financial Market, the company manages a portfolio exceeding 10 million square feet, with a strategic emphasis on high-growth zones like Dubai Healthcare City (DHCC). As part of DHCC's Phase 1 in Oud Metha—launched in 2002 by Sheikh Mohammed bin Rashid Al Maktoum—Union has developed serviced apartments, medical office buildings, and residential towers that house over 195 medical facilities and attract 12.5% annual business growth.

DHCC, the world's largest healthcare free zone, spans Phase 1 (Oud Metha, established 2004) and Phase 2 (Al Jadaf, 19 million sq ft wellness hub by 2030), hosting 481 facilities and drawing global institutions for medical tourism, education, and research. Union Properties' contributions include residential developments supporting the zone's 3.8 million projected Dubai population by 2025 and demand for 8,300 physicians. The AED 1.3 billion Phase 1 expansion (announced October 2025)—featuring a LEED Platinum office tower and 5,800 sq m medical complex (construction starts December 2025, completion November 2027)—aligns with D33 and UAE Net Zero 2050, boosting Union's role in sustainable healthcare real estate.

Post-2020 reforms, including RERA escrow and PropTech transparency, have enhanced investor confidence, with international buyers (75% of Union's DHCC sales from India, Europe, GCC) favoring the zone's 100% ownership and FDI incentives. Union's 93% delivery rate and 4.5/5 satisfaction scores position it as a reliable partner in DHCC's evolution into a $354 million investment hub.

Detailed Analysis: Residential Support Towers vs Medical-Commercial Hybrids

Union's DHCC contributions divide into two asset classes: residential support towers for healthcare professionals and medical-commercial hybrids fostering the ecosystem.

1. Residential Support Towers

Projects: Serviced apartments in Oud Metha (Phase 1 cluster), Union Heights (near DHCC), Al Warsan Residences. Price range: AED 1,500–2,500 per square foot for 1–3 bedroom units.

These mid-rise towers offer furnished units with proximity to DHCC's 195 medical facilities, featuring amenities like gyms and shuttles for staff. Al Warsan supports the zone's 12% facility growth, housing expat doctors.

2026–2030 outlook: Net yields 6.5–8%, with 95% occupancy from medical tenants (AED 120k–220k annually for 2-beds). Capital growth 7–8% p.a., driven by Phase 1 expansion. Liquidity 6–10 months.

2. Medical-Commercial Hybrids

Projects: Medical office buildings in DHCC Phase 1, Union Plaza (Oud Metha hybrid), upcoming LEED Platinum contributions. Price range: AED 1,800–3,000 per square foot for offices/apartments.

Blending clinics, labs, and residences, these support DHCC's 481 facilities and attract FDI. Union Plaza integrates retail for the zone's 130+ global companies.

2026–2030 outlook: Net yields 7–8.5%, diversified by medical leases. Capital growth 8–9% p.a., aligned with AED 1.3 billion plan. Liquidity 7–11 months.

Jaffar Husain, former Union Properties manager (2009–2012) and DHCC contributor, noted: "Union's early involvement in DHCC laid the foundation for sustainable growth, blending residential reliability with medical innovation to create a thriving ecosystem."

Comparison Matrix

Buyer Recommendations

Profile 1 – The Stable Income Investor

Best fit: 2-bedroom units in Union Heights or Oud Metha serviced towers, ready Q1 2026. Strategy: Secure 6.5–7.5% yields from medical tenants (AED 150k annually), hold 5–7 years for Golden Visa and 40–50% growth amid Phase 1 expansion.

Profile 2 – The Diversified Healthcare Investor

Best fit: Hybrid office-residences in Union Plaza, near completion. Strategy: Blend leases for 7.5–8.5% yields, leverage DHCC's 12.5% growth for resale premiums.

Checklist for Union Properties Due Diligence

1. Focus on post-2022 launches for 93%+ on-time delivery.
2. Verify DHCC Phase 1 integration via RERA portal.
3. Check occupancy (95%) and tenant retention in medical hybrids.
4. Review service charges (AED 12–18 psf).
5. Analyze FDI trends in DHCC for capital growth.
6. Confirm proximity to AED 1.3 billion expansions.

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