Dubai land sales said to soar by $8bn since 2012
Dubai land sales said to soar by $8bn since 2012
New research shows growing land-for-development shift by investors in the UAE
By Staff writer
Fri 01 Dec 2017 01:02 AM
The value of annual land sales in Dubai has risen by AED30 billion ($8.17 billion) over the last five years, with Business Bay identified as a key area for further growth, according to new research.
fäm Properties, one of the emirate’s biggest real estate brokerages, said land sales for this year so far has reached AED68 billion compared to AED38 billion for the whole of 2012.
Firas Al Msaddi, CEO of fäm Properties, said: “Since 2012, particularly in the Business Bay area, we’ve witnessed a definite upward trend for both the value of land transactions and the size of plots being bought.
“Over the past five years, Business Bay has seen an increase from AED482 million to AED3.3 billion. At the same time, the total area of land sold has grown from 731,000 sq ft to 2.5 million sq ft.”
He added: “Business Bay has witnessed enormous improvements recently and the opening of the new canal extension has freed up the area for a new range of developments. The new developer we’re working with there sees great opportunities in Dubai, and their first investment here will ultimately be worth upwards of AED700 million.”
Underlining a growing land-for-development shift by investors, Al Msaddi said his company has just sold a AED150 million plot in Business Bay to a developer new to the Dubai market.
They are now working together to develop a residential tower on the 500,000 sq ft plot in a deal which will ultimately be worth more than AED700 million.
Over the past few years, fäm Properties said it has transacted land sales in Dubai worth more than AED3 billion. Associate partner Tarek Bou Karroum added that the growing demand for specialist land advisory services is a sign of how the market is maturing.
“Market conditions since 2014 have made it impossible to buy and sell land for profit in the short term, and the emphasis has shifted from speculation to developing plots as a long-term investment,” he said.
Recently, fäm Properties said it topped AED1.6 billion in residential property sales at City Walk, the new destination developed and managed by Meraas in the heart of Jumeirah.
Subscribe to our Newsletter
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.
Related news
Revealed: Raffles hotel set to open on Dubai's Palm in 2021
05 Dec 2017
Travel & Hospitality
The making of Louvre Abu Dhabi is now a TV show
05 Dec 2017
Media
First part of $540m Abu Dhabi waterfront project revealed
05 Dec 2017
Construction
Damac offers 5% discount on new Dubai villas
04 Dec 2017
News
Developer breaks ground on new Dubai residential project
04 Dec 2017
Construction
Dubai Safari set to open 'in a few weeks'
04 Dec 2017
Travel & Hospitality
Expo 2020 Dubai awards major contract for iconic Al Wasl Plaza
03 Dec 2017
Construction
New $218m waterfront project opens in Jeddah
03 Dec 2017
Construction
UAE construction firm wins two new contracts in Egypt
20 Nov 2017
Construction
UAE close to completing construction of first nuclear power plant
30 Nov 2017
Energy