On 15 October 2026, developer H&H began construction of Water Gardens in the Dubai International Financial Centre (DIFC). The $1.4 billion project brings together four buildings, two hotels, residences and offices, with completion scheduled before the end of 2028.
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Water Gardens DIFC is now under way: on 15 October 2026, Dubai developer H&H began construction of this $1.4 billion, four-building complex at the heart of the Dubai International Financial Centre (DIFC). The scheme brings together two hotels, residences and Grade A offices. According to Bloomberg, 30,000 workers are already on site, and completion is scheduled before the end of 2028.
The timing is telling. Earlier in the year, the Iranian attacks pushed Dubai property sales down. With transactions running lower, the emirate is signalling its confidence in its financial centre.
Key takeaways
- In October 2026, developer H&H began construction of Water Gardens, a $1.4 billion mixed-use complex of four buildings in the Dubai International Financial Centre (DIFC).
- According to Bloomberg (15 October 2026), 30,000 workers are already on the Water Gardens site, and completion is scheduled before the end of 2028.
- The Water Gardens offices will provide 21,965 m² of Grade A net lettable area, including three floors of micro-suites. JLL holds the exclusive leasing mandate.
- Eden House, the 132-apartment residential building at Water Gardens, will be retained by H&H and leased, not sold unit by unit.
- The second Water Gardens hotel will have 154 rooms and 40 residences. The complex is designed by Pritzker Prize laureate Sir David Chipperfield.
A mixed-use district that completes DIFC's original masterplan
Water Gardens is one of the final pieces of the original masterplan for Gate District, the historic core of DIFC. The scheme combines offices, five-star hotels, residences, retail and restaurants. The four buildings are arranged around a central garden and water feature designed by landscape architects Bureau Bas Smets.
The architecture is by Sir David Chipperfield, with interiors by Patricia Urquiola. The office building is targeting LEED Platinum certification. The project is betting on quality of use: a walkable district where people work, live and entertain without leaving the financial centre.
A model built on leasing, not resale
Most of Water Gardens will be leased and operated rather than sold. That is the standout point of the announcement. The developer says it aims to generate steady income whatever the market cycle. The 132 apartments at Eden House will therefore stay in H&H's portfolio, while JLL markets the offices.
That choice says a lot. When a developer keeps a residential building instead of selling it off-plan, it shows faith in lasting rental demand in the area. All the more so in a year when sales have slowed. For private buyers, new homes for sale in DIFC remain scarce, which is a key driver of value for existing residences.
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What it means for DIFC and Za'abeel
New Grade A offices bring in new employees and executives. These professionals look for homes within walking distance, in DIFC itself or in neighbouring areas such as Za'abeel. The two hotels also strengthen the flow of business travellers, who sustain the high-end furnished rental market.
Completion before the end of 2028 sets a clear horizon. Purchases made in the area today sit within a district set to become denser and better served. To compare DIFC with other areas according to your goal (yield, residence, capital growth), our guide Where to invest in Dubai by neighbourhood sets out the profile of each zone.
What it changes for investors
In our view, Water Gardens confirms that DIFC remains Dubai's benchmark business address. A leading developer is committing $1.4 billion and keeping its homes to lease them out: a sign of robust long-term rental demand. That signal matters for owners and buyers of residences in DIFC and Za'abeel. These areas will gain additional offices, hotels and services, while few new homes will come to market there.
The tax advantage is unchanged: in Dubai, individuals pay no tax on rental income or on property capital gains. Investors who remain taxable in another country should nonetheless check their position, for example with our guide Dubai taxation for French tax residents. And if you are buying off-plan in the area, we recommend knowing your contractual protections; they are explained in our guide Off-plan handover delays in Dubai.
Lucretia supports you on the ground to identify properties in and around DIFC that fit your strategy, from prestige residences to off-market opportunities. For a broader overview, visit our Invest in Dubai page.
Source: bloomberg.com — 2026-10-15
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