There is a new trend in Dubai: foreign investors are increasingly interested in land plots. The plots can be used for the construction of commercial buildings (offices, retail areas), residential buildings (villas, townhouses) or resell it, making money on the increase in value.
In 2024, Dubai recorded a record number of land purchase and sale transactions - more than 180,000 for a total amount of more than 500 billion dirhams of the UAE (135 billion US dollars). The volume of the secondary land market amounted to almost 60 billion dirhams ($16.2 billion), which is 34% more than in the previous year and 1300% more than in the last 5 years.Foreigners buying land are attracted primarily by Emirates Hills, Dubai Hills and Palm Jumeirah. In these areas, the average cost of land plots is 50 million dirhams UAE (13.5 million US dollars).
Areas with a more accessible entry threshold are also in demand. For example, Dubai South, located near Al Maktoum International Airport and Expo City.
Those who are looking for long-term growth potential as infrastructure evolves should consider Dubailand. There are plots suitable for the construction of townhouses and villas.
Jumeirah Village Circle (JVC) is a popular choice for investors with an average budget. Affordable building plots are offered. In addition, due to the central location, there is a high demand for rent.
The average return on investment in land in Dubai is higher than in the residential real estate segment: 15-25% versus 7-10%.
Source: Zawya
