Land prices surge as Dubai’s developers scramble for plots

• Limited supply fuels land rush
• Push into emerging districts
• Warning of price correction

A wave of land acquisitions by Dubai developers has driven up prices by more than a third so far this year. 

Fierce competition for prime plots and off-plan sales is pushing investors into emerging districts, industry professionals say.

The land rush, fuelled by constrained supply in central areas and a growing population, has underpinned the sharp rise in transaction value.

The number of registered land deals in Dubai is up 7 percent year to date, compared with the same period in 2024, while the total value has surged 38 percent, according to David Abood, co-CEO and head of capital markets at commercial real estate services company Cushman & Wakefield Core.

“We’re [also] seeing a shift in the nature of these transactions,” Abood says. “There’s more integrated planning now; developers are assessing infrastructure timelines, zoning and long-term demand.”

This year alone, Dubai companies have unveiled a series of headline-grabbing projects. 

Bjarke Ingels Group and ARM Holding are developing the former Jebel Ali racecourse. Wasl Group is expanding Jumeirah Golf Estates, while Binghatti has acquired land in Nad Al Sheba 1, part of the broader Meydan district.

Emaar Properties, Dubai’s largest listed developer, paid $790 million to Amlak Finance for a site in Ras Al Khor. For its part, Azizi Developments started a AED75 billion ($20 billion) project in the area formerly branded as City of Arabia. Deyaar is expected to announce its largest project to date this week in central Dubai, according to a company media invite.

The buying spree has been met with a corresponding shift in developer focus. 

“While land is becoming increasingly scarce in [central and more established] areas like Palm Jumeirah, Downtown, Business Bay and Dubai Marina, activity is growing in districts such as Jebel Ali Hills and Dubai South,” says Matthew Green, head of research in the Middle East and North Africa at commercial real estate services company CBRE 

Abu Dhabi master developer Aldar Properties last month launched its Athlon community project near Dubai’s Global Village.

“Much of Dubai’s strategically located land is now controlled by major master developers,” says Abood. “As a result, acquisitions are often structured through partnerships or phased developments rather than outright purchases.”

According to real estate platform Colife Invest, Dubai recorded more than 180,000 plot transactions last year, with total land deal value exceeding AED500 billion.

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However, the pace of growth is drawing scrutiny. 

Ratings agency Fitch has warned of a potential double-digit correction in Dubai’s real estate market. 

Dubai is set to add 73,000 residential units this year, according to consultancy Cavendish Maxwell, with more than 300,000 homes forecast to be delivered by 2028. 

The peak is expected between 2026 and 2027, when more than 180,000 completions are scheduled.