Remarkable surge in Dubai’s residential plot prices soaring up

Dubai waterfront

Dubai’s real estate market is witnessing a remarkable surge in residential plot prices, soaring up to 60% in some areas. This spike is largely attributed to the post-pandemic demand boom for villa and residential building developments. Key areas like Business Bay, Downtown Dubai, Dubai Marina, and Palm Jumeirah are nearing their developmental capacity. These zones, known for their prime locations, are almost out of new plots, with only a handful remaining for new constructions.

The demand for beach-front properties is particularly high. Areas along the E-11 highway, including Dubai Marina and Palm Jumeirah, as well as Downtown Dubai and Business Bay, are seeing significant price hikes. This surge has attracted a wave of new developers from Europe, Asia, and the Middle East, eager to capitalise on the lucrative returns of Dubai’s property market.

The launch of grand-scale projects such as Emaar’s $20-billion The Oasis and Azizi Developments’ AED 30 billion Venice has further fueled the demand for residential project development.

Rizwan Sajan, chairman and founder of Danube Group, noted that while plot prices in most areas have increased by 20-30%, some have risen by as much as 50-60%. He highlighted the 50% price increase in Maritime City and anticipates a similar trend for the upcoming Bayz development in Business Bay.

Sajan expects a significant jump in apartment prices upon the completion of Bayz, located near Dubai Mall and the metro station. He also mentioned that sea-facing projects offer higher returns for investors and command higher rentals.

Emirates Hills and other established communities are nearing full capacity in terms of plot availability. While plots are scarce in prime locations off the E11Rd Corridor, secondary locations like the E311 – E611Rd corridor are also facing scarcity. However, residential communities like Jebel Ali Hills, Meydan, and Nad Al Shiba still offer choices. In the commercial sector, plots are available in secondary master developments like Al Jadaf, International City Phase 2, and Dubai Land Residence Complex.

This trend reflects the dynamic and rapidly evolving landscape of Dubai’s real estate market, signaling robust growth and investment opportunities.

Original article reference: Zawya by LSEG

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