UAE - Industry executives say that plot prices in Dubai, especially across prime areas, have doubled and in some cases quadrupled in the last two regions, while there are hardly any prime plots available in an emirate like Jumeirah Bay.
Plot sales rates have also surged due to the strong demand for real estate across the emirate in the post-pandemic period, supported by high demand from local and foreign investors and developers, as well as end-users looking to build their own homes.
Interestingly, sales of plots in excess of Dh100 million have also become a norm in Dubai over the past year or so. According to data released by the Dubai Land Department on Friday, 189 plots of land were sold for Dh2.28 billion in the week ending June 16. The top three deals were land in Palm Deira for Dh167.88 million, followed by land in Business Bay for Dh136 million and land in Al Thanyah First for Dh125 million.
"There is hardly any prime land available in Dubai at the moment," said Ahmed Abou El Naga, head of institutional sales at Metropolis Group.
"With the current spike in the off-plan market, we are seeing a number of local developers wanting to launch new projects. They are actively looking for quality plots and as a result, we are seeing an upward trend in prices. We are also seeing international developers entering the market. these developers are working with brokers, contractors and consultants to venture into the Dubai market from 2023 onwards," said El Naga.
In 2022, Metropolitan Premium Properties and Mallorca Properties completed the largest single residential land deal in Dubai, a Dh690 million deal involving three waterfront plots in Dubai Marina.
Dr. Taieser Al Saati, managing partner of Luxhabitat Sotheby's International Realty, revealed that supply in centrally located developed areas is extremely tight, driven by an influx of new residents and wealthy expatriates.
"With real estate prices reaching new highs, more and more people are preferring to buy plots and build their own custom homes rather than buying off-the-shelf homes from developers, as the cost of building a home may also be cheaper than buying one," he said.
He added that there are three types of people who buy plots - the first are those who want to buy and sell when prices rise; the second are contractors who want to build projects there and sell them; and the third are end users who want to build homes.
Al Saati added that waterfront plots in Palm Jumeirah, La Mer, Pearl Jumeirah and Jumeira Bay are in high demand." Supply in these areas has reached extremely low levels. For example, you can hardly find plots for sale in Jumeirah Bay. In areas such as Al Barari, Al Wasl and Umm Al Sheif; plot values have doubled between 2021-2023," he said.
He added that the prices of some plots in Jumeirah Bay and Palm Jumeirah have quadrupled.
Ahmed Abou El Naga of the Metropolitan Group said that before the pandemic, downtown plots used to trade at Dh350 per square foot of gross floor area; currently, it is around Dh700.
He noted that plots throughout Dubai, especially in popular locations, are highly priced, although waterfront plots are in the highest demand, such as Palm Jumeirah, Dubai Waterways, Business Bay, and a mix of oceanfront plots in Jumeirah and Al Sufouh.
In addition, prime locations close to tourist attractions, such as the Dubai Mall, are also in high demand. For villas and townhouses, plots in the Meydan and Dubai Land development communities are quite popular.
