Land plot transactions in Dubai reached the impressive total of USD 18.52 billion (AED 68 billion).
The conjuncture of the land sales market created since 2014 made land plot purchasing irrelevant as a buy-to-resell option in the short term, resulting in a shift from speculation to buying plots by end users and developers for further construction purposes, or as a long-term investment asset, according to Dubai analysts.
Since 2012, experts say, there has been a steady trend towards increased land sales, especially in Dubai’s Business Bay. Moreover, not only transactions number is growing, but land prices too, as well as the size of most demanded plots. Over the last five years, land sales increased from AED 482 million to AED 3.3 billion per year, and the area of plots sold — from 6.8 to 23 hectares.
As for the most popular Dubai districts for buying land plots, the sites in the above mentioned Business Bay topped the list, after the area having acquired a new, more prestigious status due to large-scale infrastructure changes and the Dubai Canal opening, which brought life to previously unclaimed land plots along the new water body.
However, other Dubai areas won’t lag behind too far. Considering that almost all land plots for construction in the center of Dubai had been already developed, investors and builders are rushing to the periphery, i.e. to the areas near Jebel Ali port, or even to the northern emirates, for example, to Ras Al Khaimah, where investment opportunities for buying land are amazing. The project of manmade Al-Marjan islands with already well-developed infrastructure, offers non-taxable freehold plots for construction of resort-type real estate units on the first seafront line, with up to 12% annual ROI. The area of Al-Marjan plots varies from 2000 m2 to 37 hectares (the whole island), and the prices start at AED 3780 per square meter. And also, payment plans allow paying up to 90% of the land cost in installments.
For investments in land plots of the Al-Marjan Island and in Dubai, please contact the Head of the Real Estate Investments Department at the Russian Business Council, Oleg Lavrik:
Mob.tel.: +971 502528188 (Viber, WhatsApp, Telegram, IMO)