Dubai’s Shangri-La Hotel Set for $1.3 Billion AHS Twin Towers Office Conversion

Key Takeaways

• AHS Properties plans to transform Shangri-La Dubai into AHS Twin Towers, a $1.3 billion Grade A office development targeted for completion in 2028.
• Founder and CEO Abbas Sajwani says more than 30% of the project is already booked, following the hotel’s AED1.1 billion acquisition.
• The redevelopment targets premium office demand, although slower leasing activity and additional supply from 2028 create a more competitive backdrop.

AHS Properties Plans New Offices at a Landmark Dubai Address

AHS Properties is preparing to convert the Shangri-La Dubai hotel on Sheikh Zayed Road into a $1.3 billion commercial development, adding premium office space to one of the city’s established business corridors.

The project, named AHS Twin Towers, is expected to be completed in 2028. It follows the developer’s AED1.1 billion acquisition of the hotel and represents a further expansion beyond its luxury residential portfolio.

The two figures refer to different parts of the transaction: AED1.1 billion is the announced acquisition price, while $1.3 billion is the stated value of the planned development. The latter should not be interpreted as a disclosed construction budget.

Founder and Chief Executive Abbas Sajwani says more than 30% of the project is already booked. That provides an early indication of commercial interest, although the bookings figure does not establish completed sales, occupied offices or rental income.

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Premium Offices Drive the Redevelopment Strategy

The conversion reflects AHS Properties’ assessment that the site can serve growing demand for high-quality business premises.

Sajwani has identified location, views and the existing building layout as central to the decision. The opportunity to complete the transformation within a relatively short period also influenced the investment case.

For the developer, adapting an established property offers a route to introducing office space at an existing city-centre address. Its proximity to DIFC and Downtown Dubai supports its positioning for businesses seeking headquarters or a regional base.

The commercial rationale depends on companies’ willingness to pay for the combination of location, building quality and services. Demand across Dubai’s office market varies substantially, making the performance of premium properties more relevant to this project than a single citywide measure.

Dubai Office Demand Remains Active but More Selective

Independent market research supports continued demand for well-located offices while showing a more measured pace of leasing.

Savills recorded approximately 20,200 Dubai office rental transactions in the third quarter of 2026, down 8% from the previous quarter. Average rents remained broadly stable at AED241 per square foot annually.

Smaller units accounted for much of that activity: offices below 1,000 square feet represented 66% of transactions. At the same time, corporate relocations continued to support demand for Grade A buildings with strong transport connections and modern facilities.

The distinction matters for AHS Twin Towers. Its proposed full-floor offices of approximately 16,000 square feet, alongside half-floor configurations, target a different segment from the smaller units dominating transaction volumes.

Research from Cushman & Wakefield Core also points to a divided market, with Grade A occupancy above 96% while older properties face greater pressure to attract and retain tenants. Strong demand for premium space therefore coexists with caution elsewhere in the market.

Gensler Design and Workplace Amenities Shape the Offering

Gensler is responsible for the redevelopment’s architectural design, with interiors by AHS Atelier, the developer’s in-house studio.

The plans include a refreshed exterior and substantial interior changes. AHS Twin Towers will comprise a ground floor and 49 upper floors, with facilities designed to position it at the premium end of the office market.

The proposed amenities include more than 30,000 square feet of wellness and fitness facilities, over 12,000 square feet of dining space, executive lounges and a rooftop garden. More than 1,000 parking spaces are also planned.

These features may help distinguish the development, but their commercial contribution will depend on occupier demand and the cost of operating the building. Amenities alone do not determine occupancy, rental returns or investment performance.

The 2028 Completion Target Brings Supply Competition Into Focus

AHS Twin Towers is scheduled to reach the market as Dubai’s office development pipeline begins to expand more significantly.

Savills expects new supply to increase from 2028 onwards. That could give businesses more choice and require developers to compete more closely on location, specification, pricing and flexibility.

For AHS, the redevelopment timetable is therefore important. Delivering the project as planned would allow the company to compete for occupiers seeking additional space during that period. Delays could change its position relative to other developments.

Construction progress, final specifications and the conversion of bookings into completed transactions will provide clearer evidence of delivery. Rental levels and occupancy after completion will be more meaningful measures of operating performance.

AHS Extends Its Commercial Property Business

The planned conversion follows AHS Tower, the developer’s first Grade A commercial project, which the company says sold out during development for more than $700 million.

Sajwani has indicated that AHS will continue concentrating its investment activities in Dubai, particularly Sheikh Zayed Road and premium commercial projects, alongside its residential portfolio.

The strategy gives the company greater exposure to demand from businesses as well as homebuyers. It also makes office-market conditions, corporate expansion plans and the timing of competing developments increasingly important to its outlook.

The Shangri-La conversion represents a substantial change of use for a familiar Dubai landmark. Early bookings support the developer’s case for premium office demand, while the 2028 delivery target places execution and future supply at the centre of the project’s longer-term prospects.

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