Land sales in Dubai increase by $8.1bn over five years
The value of annual land sales in Dubai increased by $8.1bn (AED30bn) over the last five years, according to a Dubai-based property developer
The value of annual land sales in Dubai increased by $8.1bn (AED30bn) over the last five years, according to a Dubai-based property developer.
Firas Al Msaddi, CEO of fäm Properties, said that as of 9 November, land sales in Dubai for this year have reached nearly $19bn (AED68bn) compared to $10bn (AED38bn) in 2012.
The property developer also identified Business Bay as a key area for further growth, after the company recently secured a $190m (AED700m) plot deal.
“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,” said Al Msaddi.
“Over the past five years, with overall land sales in Dubai rising annually from AED38 billion to AED68 billion, 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.”
fäm Properties has transacted land sales in Dubai worth more than $816m (AED3bn), with associate partner Tarek Bou Karroum recognising much bigger emphasis on market research to develop property that meets demand.
He also highlighted the growing need for specialist land advisory services as 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,” Bou Karroum said.
fäm Properties recently sold a $40m (AED150m) plot in Business Bay to a developer new to the Dubai market.