Why are global investors in Dubai shifting their focus to plots?

Khaleej Times

10-04-2025

Dubai's property scene is now buzzing with a new trend: foreign investors are increasingly turning their attention to plots of land.
Drawn by the promise of high returns, tax perks, and a thriving economy, this pivot reflects a deeper confidence in Dubai's long-term prospects.
The appeal? Undeveloped plots offer flexibility — whether it's crafting a bespoke villa, erecting a commercial hub, or simply holding onto the land for a lucrative resale, realty experts say.
Last year alone, the numbers spoke volumes. Dubai clocked over 180,000 plot transactions, raking in more than Dh500 billion. Resales netted investors nearly Dh60 billion in profits, while the secondary market soared by 34 per cent year-on-year—a staggering 1,300 per cent leap over the past five years.
Prices are surging, fuelled by robust regulations, digital transparency tools from the Dubai Land Department, and ambitious government strategies.
Take the sale of a plot on a seahorse-shaped artificial island: bought for $9.9 million, it flipped two years later for $23 million—a jaw-dropping 242% return. Such stories are no longer outliers but markers of a maturing market.
The hotspots are as diverse as the investors themselves. Emirates Hills, Dubai Hills, and Palm Jumeirah lead the pack, where prime plots fetch an average of Dh50 million, catering to those with deep pockets. Yet, affordability isn't out of reach. Dubai South, nestled near Al Maktoum International Airport and Expo City, offers a lower entry point, with prices poised to climb as infrastructure blossoms.
Dubailand, meanwhile, is emerging as a canvas for townhouses and villas, its potential tied to ongoing development. For the budget-conscious, Jumeirah Village Circle (JVC) shines—central, in-demand for rentals, and dotted with reasonably priced plots ripe for building.
Olga Poletskaya, CEO of Colife Invest, underscores the allure: 'The average return on plots—15-25 per cent —far outpaces the 7-10 per cent from apartments and villas. We're even seeing deals double in value.'
'It's a compelling contrast to the residential sector, where predictability has long reigned. Plot prices climb faster in up-and-coming areas, offering investors a blank slate—build a dream home, a retail space, or lease it out for passive income, say, as parking or storage. The absence of property or capital gains taxes only sweetens the deal,' Poletskaya adds.
What's driving this land rush? Beyond the numbers, it's about vision, say analysts at Colife. Dubai's Urban Plan 2040, the expansion of Al Maktoum Airport, and the legacy of Expo City signal a metropolis on the move. Analysts predict plot demand will stay strong through 2030, buoyed by these mega-projects.
'Investors see Dubai as a safe bet with room to grow,' notes a Betterhomes report, highlighting a spike in foreign interest. Unlike finished properties, plots offer a lower entry cost in many cases, plus the freedom to wait and watch values soar—a strategy paying off in spades.
From Russian tycoons to Indian entrepreneurs, the global crowd is diversifying. They're not just buying; they're betting on Dubai's future. And with the government doubling down on transparency and development, that future looks golden.
Whether it's a millionaire snapping up a Palm Jumeirah parcel or a mid-tier investor eyeing JVC, the message is clear: in Dubai, the land itself is the new luxury. As the city races toward its 2040 ambitions, plots might just be the smartest play yet in this desert dynamo's real estate game.
Investing in residential real estate in Dubai is well-known and understood by foreign investors. However, the growing popularity of purchasing plots has its own reasons. What are they?
Analysts at Colife argue that since plot prices are growing faster than finished real estate in developing areas, investors are incentivised to go for it. 'In addition, there is choice. You can build an individual villa, or a commercial building, or do nothing and simply resell it for a higher price. Often a lower entry cost than buying a finished property. The absence of property tax or capital gains tax makes investments more profitable," they explained.