Dubai land market sales have seen a significant jump during the period from the beginning of 2024 to the end of October to AED 163 billion, resulting from 15,539 transactions, compared to AED 128.7 billion, a growth of 26.7%, in terms of value, compared to the same period in 2023, according to data from the website of the emirate’s Land and Property Department.
Residential lands accounted for the largest share of total sales, amounting to AED 106.6 billion, resulting from 12,293 transactions, equivalent to 65.4% and 79% in terms of value and number, respectively, compared to AED 56.4 billion (3,246 transactions) for commercial lands, with a share of 34.6% and 21% in terms of number and value, respectively.
In terms of the top land deals, during 10 months, Dubai Investment Park 2 ranked first with a value of AED 3.56 billion, followed by Al Yalayis in second place with AED 2.83 billion, followed by Mushrif and Trade Centre 2 in third place with a value of AED 800 million each, Dubai Harbour came in fourth with AED 742 million, and Tecom City A in fifth place with AED 720 million.
Dubai Investment Park 2 ranked sixth with AED 691 million, then Business Bay in seventh place with AED 650.2 million, followed by Palm Jumeirah in eighth place with AED 650 million, while Dubai Maritime City ranked ninth with AED 615 million, and finally Al Yufrah 1 came in tenth place with a value of AED 610 million.
Dubai Lands data indicated that total transactions, since the beginning of the year until the preparation of this report, recorded more than AED 665.4 billion resulting from 160,060 transactions.
Sales reached AED 462 billion, achieved through 160,060 transactions, the highest of which was in the Business Bay area at AED 25.1 billion (10,026 transactions), followed by Jumeirah Village Circle in second place at AED 17.8 billion (15,326 transactions), followed by Burj Khalifa in third place at AED 17.3 billion (3,973 transactions). Mortgages achieved AED 158 billion resulting from 36,570 procedures, while grants reached AED 45.4 billion through 7,890 transactions. Steady growth
Regarding the land sector in Dubai, Daniel Hadi, CEO of Engel & Völkers Middle East, explained that the rise in prices can be largely attributed to the strong economic and population growth witnessed by the emirate, in addition to the high demand for real estate from international investors. This increase in demand has led to a rapid increase in average property prices, which have reached record highs, increasing by 17% over the past twelve months.
Hadi said: “Real estate developers have taken advantage of the high demand and rising prices by launching significantly more projects, which has led to an increase in demand for land for the construction of residential buildings, homes and residential complexes. At the same time, the influx of high-net-worth individuals to Dubai has also contributed to the increase in demand for land, especially for villas in prime residential complexes.”
“Overall, with the continued growth, the market shows no signs of being constrained by a shortage of land, and the lack of availability for projects in key areas of Dubai such as Business Bay and Dubai Marina has been a deterrent for developers to launch projects in these areas,” added Engel & Völkers CEO.