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Dubai real estate surges as new set of buyers eye super-high returns on land investments

Demand for ready plots and off-plan land continues to surge, positioning Dubai’s land market as a key wealth-generation vehicle

Record-Breaking Land Deals Drive Dubai’s Real Estate Surge
The plot segment is projected to emerge as a key wealth-generation vehicle for both regional and global investors. Image: Shutterstock

The land market is fast emerging as what industry players describe as the ‘ultimate asset class’ in Dubai for super-high investment returns, driven by a new set of buyers who bet on the city’s evolving master plan and potential impact on long-term value, sector experts said.

The demand for ready plots and off-plan land in prime districts is seeing a surge of late, with buyers securing land in key districts, positioning themselves to emerge as key players in Dubai’s future landscape, eyeing to hit a jack in the medium-to-long-term, they said.

Industry insiders said investing in plots in Dubai presents are increasingly seen as a strategic advantage for both individual investors and institutional buyers, with returns reaching up to triple-digit percentages in key locations.

The plot segment is projected to emerge as a key wealth-generation vehicle for both regional and global investors, with prime land continuing to set new benchmarks.

The growing momentum for plot investments is evident, with some of the leading real estate consultancies in the city – such as Springfield Properties – reporting multi-million Dirham investments in secondary market land sales in just the first ten days of Ramadan.

“Buyers are securing land in key districts with a clear, long-term vision – understanding that these locations are not just about prime real estate, but about positioning themselves in Dubai’s future landscape,” Farooq Syed, CEO of Springfield Properties, told Arabian Business.

“The sustained demand for prime plots in Dubai also reflects a strategic shift among investors toward assets that offer both exclusivity and substantial capital appreciation,” he said.

Senior executives at other leading real estate service providers also confirmed the rising demand for investments in plots in the city.

Record land deals surge

Among the deals involving plots in the first week of Ramadan were the AED100 million transactions in Al Wasl District, and an additional AED100 million in sales at The Oasis by Emaar, branded by The Address in secondary market land sales reported by Springfield Properties.

Jumeirah Bay Island, also known as ‘Billionaire Island’, is an exclusive residential community off the coast of Jumeirah. Image: Shutterstock

The plot sales in Al Wasl District saw price-per-square-foot values reaching up to AED2,500, highlighting the area’s resilience as a high-performing micro-market for prime land acquisitions, industry executives said.

Unique Properties, a leading developer in Dubai’s ultra-luxury real estate market, reported successfully closing a record-breaking residential land sale deal on Jumeirah Bay Island for $50 million (AED182 million) last week.

The surging demand for land investments is also reflected in the AED9.6 billion plot sales registered in February across 608 transactions, posting a surge of about 75 per cent compared to the same year-ago period.

Syed said the surging investments in the plot segment also underscore the strength of Dubai’s off-plan market, where branded developments continue to attract buyers seeking both exclusivity and long-term capital appreciation.

“Dubai’s real estate market has long been synonymous with high-value investment opportunities, but few segments offer the capital appreciation and wealth-generation potential of land acquisitions,” he said.

Dubai real estate surge

Sector experts said the trend of surging demand for investments in plots, along with the sustained momentum in the growth of the residential and commercial real estate sectors, enables Dubai to maintain its lead as one of the strongest-performing real estate markets globally.

Dubai’s real estate market saw a total transaction value of AED 114.08 billion ($31.1 billion) in the first quarter of 2025. Image: Savills

The sustained demand for plots also drives new benchmarks in both prime and emerging locations in the emirate, they said.

The Springfield Properties chief executive said Dubia’s ability to maintain this momentum is being driven by record-breaking population growth, continued inflows of international capital, and government-led infrastructure expansion.

The emirate’s real estate market has exhibited substantial growth in the first quarter of 2025, recording a total transaction value of over $31 billion (AED114.08 billion), a jump of more than 29 per cent from the same year-ago period, according to the latest analysis by Springfield Properties.

Market projections suggest that property prices are expected to increase by 5 – 10 per cent throughout 2025, supported by the anticipated delivery of approximately 72,365 residential units.

“Dubai’s evolving landscape continues to attract investors seeking long-term value in a market characterised by its resilience and strategic growth initiatives,” Syed said.

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James Mathew

James Mathew, preferred to be addressed as James, assumes the role of India Correspondent at Arabian Business from New Delhi, bringing to the table a wealth of knowledge and expertise in economic, financial,...