Dubai: Residential plot prices jump up to 60% as some areas reach their full capacity

Very few options left for new development in Marina, Palm, Business Bay areas

Prices of plots for the development of villas and residential buildings have increased by up to 60 per cent in Dubai due to the frenzy around new developments to meet the unprecedented demand in the post-pandemic period.

Some of the areas of Dubai such as Business Bay, Downtown, Marina and Palm Jumeirah have either no availability of new plots or they’re close to reaching their full capacity, with just a few plots left to develop new towers.

Interestingly, many new developers from Europe, Asia and the Middle East have also forayed into Dubai’s property market to cash in on the higher returns, leading to higher demand for plots for property developments.

Moreover, some mega new communities have come up in the emirate such as the $20-billion The Oasis by Emaar and Dh30 billion Venice by Azizi Developments, resulting in higher demand for residential projects development.

“Residential villa plots, particularly in luxury segments like Jumeirah Bay, Palm Jumeirah, Pearl Jumeirah, and La Mer South Island, have experienced substantial price increases. The average price hikes in these areas range from 25 per cent to 30 per cent, with Jumeirah Bay witnessing even higher increases at 45 per cent to 50 per cent,” John Allen, CEO of valuation and advisory at Asteco, told media in an interview.

He said the surge in prices for non-beachfront plots in Pearl Jumeirah has risen significantly, whereas areas with limited vacant plots, such as Emirates Hills, are witnessing increased competition for available plots, as well as redevelopment and refurbishment projects.

“Secondary areas where plots are for self-build, such as The Villa, Jabel Ali Hills and Al Mamzar also recorded marked price increases, generally in the range of 15 per cent to 25 per cent over the year.”

Rizwan Sajan, chairman and founder of Danube Group, said plot prices in most of the areas have gone up by 20-30 per cent but few areas have gone up by 50-60 per cent.

Danube Properties launched projects worth over Dh10 billion last year including Oceanz in the Maritime City. “In Maritime City, plot prices have increased by 50 per cent,” he said.

He expects the plot price of its upcoming development Bayz in Business Bay will also witness a substantial increase. “There are no plots available in Downtown. In 6 months to 1 year, you will not get plots in Business Bay. There are very few left now. When you buy any plot in Downtown or sea-front, it has to go up very fast,” said Sajan.

He expects prices of the apartments in newly-launched Bayz, which is located a few away from the Dubai Mall and metro station, will jump 50-60 per cent, if not double upon completion.