Aldar’s London Square aims to deliver 9,000 UK homes in five years

Delivery plan and housing mix

London Square, part of Abu Dhabi’s Aldar Properties, intends to deliver about 9,000 homes in the United Kingdom capital over the next five years, citing resilient demand.

Scott Brown, the company’s chief financial officer, said the new homes will be spread across roughly 30 sites.

He added that more than 3,600 units will be for sale, 1,538 will be build‑to‑rent and another 3,575 will fall into the affordable segment, where government assistance helps buyers purchase a home.

He made these remarks during a presentation.

Historical performance and recent sales

London Square, acquired by Aldar in 2023, has handed over 5,000 homes across 46 sites since its founding in 2010, representing a development value of £2.9 billion ($3.8 billion).

Scott Brown noted that under the Aldar banner sales have been stronger than historically and are currently outperforming peers, adding that the partnership has helped drive both capital and sales.

“Under the Aldar banner, our sales have actually been better than they were historically and in the current market have been outperforming all of our peers,” Mr Brown said. “Through our involvement with Aldar, we’ve not only been able to drive the capital but we’ve also been able to drive our sales.”

The firm is known for regenerating former industrial sites, pointing to the Nine Elms development that offers more than 750 residential homes and 21,500 square feet of commercial and retail space.

It is also converting the former Surrey County Council headquarters into a premium 292‑home project that includes the restoration of historic structures.

London Square aims to complete 600 homes this year, up from 398 last year, and expects its sales backlog to reach £1 billion by the end of 2026.

“Most of this year will be on the affordable market rather than the build-to-sell market … about 30 per cent of what we’re building is affordable,” Mr Brown told The National in London. He did not provide details on the total sales the company expects this year.

Market context and outlook

London Square reported sales of £251 million for the first half of this year, a rise of 236 per cent year‑on‑year, driven by three new schemes – Bermondsey Phase 3, Wimbledon Bridge House and Ransome’s Wharf.

Naomi Minegishi, the company’s international sales director, said that sales originating from the Middle East make up 10 to 15 per cent of total international sales, with Emirati buyers leading the activity.

She added that purchasers from China, Singapore and Turkey are also significant players in London’s property market.

“International demand is being driven by investment opportunity, safe haven of their capital and a strong legal framework,” Ms Minegishi said. “Families also want to have a second home to spend time in summer, as well as to have a home to support their children as they enrol them in school or universities to study in London.”

London’s property market has been affected by geopolitical uncertainty that is pushing inflation higher.

According to the Nationwide Building Society, the average home price in London rose modestly by 0.4 per cent annually in the third quarter to £529,720, as demand stayed weak amid higher borrowing costs.

Sharief Ibrahim, executive director and head of residential agency at CBRE, said fundamentals remain solid because of heightened investment activity, lifestyle vibrancy and the city’s diverse population.

“There is real cause for optimism. There are countless examples of schemes that are performing really well, many in the London Square portfolio in terms of the volume of apartments being sold and the value being achieved,” he said.

“London is a resilient place. It’s been through economic downturns, shocks to the economy and the system and the appeal of London has endured throughout that period. It’s a global powerhouse and one of the, if not the most, successful city in terms of inward investment globally.”

He projected that home transaction volumes will be around 6,000 to 7,000 this year and 7,500 to 8,000 next year.