“Values for undeveloped plots have been holding pretty steady in the last two quarters, with the Mohammad Bin Zayed corridor seeing plot prices of AED120-Dh140 a square foot, and touching AED150 closer to the Expo vicinity,” said Sailesh Israni, managing director at Sun and Sand Developers, which has just launched a new project at Silicon Oasis offering 2,500 square feet apartment units at AED2.2 million. “At Silicon Oasis, land values are now around AED180 a square foot, and there’s a premium attached for plot sizes of 50,000/60,000 square feet to 100,000 square feet. The premium is because projects can be mounted faster and completed sooner on such plots.
“Developers are once again trying to bump up their land holdings, seeing advantages either building their own projects or using it as assets for future transactions.”
It was in 2012 that developers got back into active land acquisitions after the horrors of the downturn.