Latest news with #OlgaPoletskaya
Khaleej Times
10-04-2025
- Business
- Khaleej Times
Why are global investors in Dubai shifting their focus to plots?
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.
Zawya
09-04-2025
- Business
- Zawya
New real estate trend: Foreign investors in Dubai shift focus from apartments to plots
The Dubai real estate market has long been an attractive destination for investors from all over the world, including those from abroad. Thanks to high profits, tax incentives and a rapidly developing economy. Among the various investment options, buying plots of land in Dubai has gained great demand due to the long-term growth potential, profitability and flexibility in investing. What is a «plot»? A plot is an undeveloped land plot for a variety of purposes that can be used to build commercial buildings for personal or investment purposes. By the way, a plot is a commercial property. Investors can buy these plots for: commercial projects (offices, retail space), residential development (villas, townhouses), resale in anticipation of an increase in value. About money Last year, Dubai saw a record number of plot transactions — more than 180,000 for a total of over AED 500 billion. Investors earned almost AED 60 billion on resales, while the secondary market brought in almost AED 60 billion, up 34% from the previous year and 1,300% more than in the last 5 years. The rapid growth in plot prices demonstrates investor confidence in the future of Dubai. This was made possible largely by strict regulations, digital transparency tools and long-term development strategies implemented by the Land Department and the Government of Dubai. Betterhomes previously reported a noticeable increase in interest from foreign investors in purchasing land plots. They are primarily attracted by the Emirates Hills, Dubai Hills and Palm Jumeirah areas. In these areas, land plots cost an average of AED 50 million. Also in demand are areas with a more affordable entry threshold. Dubai South — located near Al Maktoum International Airport and Expo City. Ideal for commercial and residential investments due to prices and future growth prospects. Another area is Dubailand. Actively developing, with available plots suitable for townhouses and villas. Worth considering for those looking for long-term growth potential as infrastructure develops. Jumeirah Village Circle (JVC) — a popular choice for investors with an average budget. There are affordable plots of land for development. And there is also high demand for rent due to the central location. — The average income and return on investment from plots in Dubai is higher than in the residential real estate segment (apartments and villas) — 7-10% versus 15-25%. But this is not the limit. We see that transactions with a yield of X2 are being made on the market, — says Olga Poletskaya, CEO of Colife Invest. A well-known case is the sale of a plot of land on an artificial sand island in the shape of a seahorse, the owner of which sold it and received a 242% profit, or $ 23 million. He owned the plot for 2 years, having bought it for $ 9.9 million. Why plots? 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? Plot prices are growing faster than finished real estate in developing areas. Flexibility in choice. You can build an individual villa, a commercial building, or do nothing and simply resell it for a higher price. Often a lower entry cost than buying a finished property. Tax incentives - the absence of property tax or capital gains tax makes investments more profitable. Passive income potential. You can lease plot to businesses (for example, for parking, warehouses). Strong growth potential until 2030. Upcoming projects such as Expo City, Al Maktoum Airport, Dubai Urban Plan 2040 will drive demand.
