Limited choices remain for new development in the Marina, Palm, and Business Bay regions.
The demand for new developments in Dubai’s post-pandemic period has led to a surge in plot prices for villa and residential building development, rising by as much as 60%. Key areas like Business Bay, Downtown, Marina, and Palm Jumeirah are experiencing either a lack of available plots or nearing full capacity, with only a limited number of plots remaining for new tower development.
Real estate executives note a surge in demand and prices for beach-front properties, especially along E-11 highways like Marina and Palm Jumeirah, Downtown, and Business Bay. Notably, developers from Europe, Asia, and the Middle East have entered Dubai’s market, driving up demand for property development plots. Additionally, the emergence of mega-communities like Emaar’s $20-billion The Oasis and Azizi Developments’ Dh30 billion Venice has heightened the need for residential project development in the emirate.
“Residential villa plots, especially in upscale sectors like Jumeirah Bay, Palm Jumeirah, Pearl Jumeirah, and La Mer South Island, have seen significant price surges. Prices in these regions have surged by an average of 25% to 30%, with Jumeirah Bay experiencing even more substantial increases, reaching 45% to 50%,” explained John Allen, CEO of valuation and advisory at Asteco, in an interview with Khaleej Times.
He noted a substantial rise in prices for non-beachfront plots in Pearl Jumeirah, while locations like Emirates Hills, with limited vacant plots, experience heightened competition and increased redevelopment and refurbishment projects.
“In secondary areas offering plots for self-build, like The Villa, Jabel Ali Hills, and Al Mamzar, there’s a notable price surge, generally ranging from 15 to 25 percent throughout the year.
Rizwan Sajan, chairman and founder of Danube Group, observed that plot prices have increased by 20-30 percent in most areas, with a few witnessing a more significant surge of 50-60 percent.
Danube Properties unveiled projects exceeding Dh10 billion last year, including Oceanz in Maritime City, where plot prices surged by 50 percent. Anticipating a substantial increase in Bayz’s plot price in Business Bay, Sajan noted scarcity in Downtown plots. He emphasized rapid appreciation for plots in Downtown or by the sea. Sajan predicted a 50-60 percent jump, if not a doubling, in Bayz apartment prices near Dubai Mall. Projects with sea-facing plots promised higher investor returns and elevated rentals. Asteco’s John Allen highlighted strong demand for villa plots in Jumeirah Bay and Palm Jumeirah and a 60 percent yearly increase in canal-front commercial plots.
Reaching maximum capacity
Allen added that there are still several residential communities which offer a range of choices, such as Jebel Ali Hills, Meydan, and Nad Al Shiba. In the commercial sector, there are various plots available within the more secondary located master developments such as Al Jadaf, International City Phase 2, Dubai Land Residence Complex, Liwan, Arjan, Majan, and Jumeirah Village Circle (JVC).
