Dubai could be set for another round of big-ticket developments with a host of lucrative plots currently up for sale and ready for the next superlative-laden project launch.
An analysis of land listings on website Dubizzle.com has found plots for sale at in-demand areas such as Wafi, Palm Jumeirah, Dubailand and Business Bay, as well as a coastal offering in the emirate of Ras Al Khaimah.
Prices range from $266m for almost 1 million square feet in Wafi to $39.5 million for 100,000 square feet in Dubai’s Downtown district.
Lannhill real estate commercial property agent Gavin McNally said most of the interest in land sales in the past six months had come from Indian investors, while interest was also coming from Saudi Arabia, Egypt and within the UAE.
McNally said Business Bay was “hot” at the moment for developers looking at tower projects, while smaller developers were focusing on townhouse-style projects in Jumeirah Village Circle.
FAM Properties property consultant and broker Peter Sleiman said location was the key factor when developers were looking to invest their money.
He said construction costs were much the same across Dubai at AED200-500 ($54-136) per sqft, but the resale price varied from AED1400-1500 per sqft in Business Bay, to up to AED2000-3000 per sqft in Downtown.
Jones Lang LaSalle head of research Middle East North Africa, Craig Plumb, said it was important that proposed levels of supply remained well below those proposed before the property peak in 2008.
First half-year figures released by Asteco last month showed Dubai’s real estate market currently comprised 417,900 apartments, 62,000 villas and 9.6 million square metres of office space.
Assuming construction deadlines were met, it estimated an extra 19,400 apartments, 3,400 villas and 600,000 square metres of office space would be added to the market by the end of 2013.