Land prices for residential construction in Dubai have increased by 60%

Land prices for residential construction in Dubai have increased by 60% over the past year. This is attributed to the growing construction activity amid unprecedented demand for housing in the emirate post-pandemic. In the most popular and developed areas, construction is happening at maximum capacity, leading to a shortage of available land. In areas like Business Bay, Downtown, Marina, and Palm Jumeirah, new plots are either already unavailable or in serious shortage.

There is a particular demand for housing and the resulting increase in prices for both real estate and land in areas along the E-11 highway, including Dubai Marina and Palm Jumeirah. With increased market activity in Dubai's real estate, new players from Europe, Asia, and other Middle Eastern countries have entered the construction sector. This further exacerbates the situation with the availability of land for sale and the high prices associated with it.

In most emirate regions, land prices have risen by 20-30%, but elite areas are experiencing a surge of 50-60%, especially in Jumeirah Bay, Palm Jumeirah, Pearl Jumeirah, and La Mer South Island. The increase in land prices beyond coastal areas is also significant, with noticeable buyer competition in the Emirates Hill area. In The Villa, Bagel Ali Hills, and Al Mamzar, annual price growth in the range of 15-25% is observed. Overall, many old communities have depleted their land resources. The current supply of plots for large-scale construction projects along the E311 and E611 highways is scarce. This holds true for both residential and commercial construction. A significant supply of commercial land is still present in areas like Al Jadaf, International City Phase 2, DubaiLand Residence Complex, Liwan, Arjan, Majan, and Jumeirah Village Circle.