Land prices in Dubai freehold areas rise 13% in 2017

With transactions steadily rising since 2016, price of land in freehold areas of Dubai have risen 13% in the first six months of the year, a new report reveals

Price of land in freehold areas of Dubai have risen 13% in the first six months of 2017.
Price of land in freehold areas of Dubai have risen 13% in the first six months of 2017.

With transactions steadily rising since 2016, price of land in freehold areas of Dubai have risen 13% in the first six months of the year, a new report reveals.

According to data from Reidin-GCP, returns on land transactional activity had outperformed that on Dubai residential units by more than 50% over the last 14 years, Arabian Business reported.

Though transactions have been rising since last year, prices have just begun appreciating this year, the report highlighted.

 

“We expect land transactional activity to continue to gather momentum as the World Expo approaches [in 2020], consequently pushing prices higher,” it said.

The report also said that number of Dubai construction permits issued rose 38 percent increase in 2016 compared to the year before, according to official data.

As for the overall Dubai real estate market, a report by property consultancy CBRE revealed last week that residential sales values in the city will continue to decline throughout H2 2017.

CBRE noted that the Dubai rental market looks set to experience “further deflationary pressures, broadening the tenant-led market, and ultimately handing bargaining power to new tenants”.

With these pressures taking shape this year, rent prices are expected to continue to soften, with flexibility on the number of cheques, and even rent-free periods for some secondary locations to be expected.

Most popular

Awards

Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 765
Jun 29, 2020