Dubai developers are rushing to pick up large-sized plots in the underdeveloped freehold areas in the emirate before land prices start to strengthen once again. Increased activity is especially being seen around Dubai World Central, close to the Expo 2020 venue. Another corridor that is popular with developers is the stretch along Shaikh Mohammad Bin Zayed Road.
It was only in 2012 that developers once again started actively acquiring land after the depressed environment of the downturn of the previous years. With the values of underdeveloped plots remaining relatively stable over the last two quarters, developers are now looking at increasing their land holdings with the idea of either building new projects or retaining it as assets for future transactions.
Land prices have stabilized across most of Dubai’s master-planned communities, and in some cases land parcels in the secondary market have asking prices that are below market levels. Some developers are also disposing their land to use the funds to reduce their debt or relaunch shelved or delayed projects.
However, in some of the more established communities, completion as well as infrastructure development has resulted in increased demand due to which the remaining land parcels carry a premium tag. In Burj Khalifa district, for instance, prime land parcels are available at the higher end of the price spectrum and attract competitive bidding. Land parcels in this area have recorded the strongest price growth.