Prices of land plots in Dubai are rising

A scarcity of undeveloped land in Dubai has led to an unprecedented surge in plot prices, paving the way for further hikes in the city’s already expensive real estate market. Analysts point out that in certain areas, land prices have nearly quadrupled in the past year, forcing developers to reconsider their strategies to take advantage of this trend.

Rizwan Sajan, founder and chairman of Danube Group, the parent company of Dubai’s Danube Properties, believes that there are no indications that the real estate market will cool down this year. He anticipates a “minimum” 20% to 30% rise in property prices across all segments in Dubai’s prime locations for 2024, attributing this projection to escalating land costs. Sajan mentions that he is observing a significant price increase for the same plots in just a few months.

According to Sajan, some plot prices have surged by 40 to 50% in less than 6 months, accompanied by a 10%increase in construction expenses. Plot prices are influenced by factors such as location, size, intended use, and scarcity. For instance, a 19,000 sq. ft plot in Jumeirah Village Circle is listed for AED 32M (USD 8.7M), while a 24,077 sq. ft plot designated for a mansion on Dubai’s “Billionaires’ Row” on Jumeirah Bay Island is on offer for AED 200M (USD 54.4M).