Three plots of land in Downtown Dubai have been sold for a combined profit of AED715 million, highlighting the city's real estate market's incredible growth and investment potential. The three transactions, all completed within five days last month, brought individual returns of AED225 million, AED290 million and AED200 million for the three sellers.
Data from DXBinteract revealed that an investor sold one of the plots, a prime 51,439 sq ft parcel of land, for AED400 million just 18 months after buying it for AED175 million. The two other plots were bought in April 2017 and May 2021, respectively.
The real estate investments yielded impressive profits and appreciation. A plot of 51,439 sq ft was purchased for AED 175M and sold for AED 400M, resulting in a profit of AED 225M and an appreciation of 129 per cent. Another plot of 36,345 sq ft was bought for AED 95M and sold for AED 385M, generating a profit of AED 290M and an outstanding appreciation of 305 per cent. Lastly, a 71,169 sq ft plot was acquired for AED 200M and sold for AED 400M, resulting in a profit of AED 200M and an appreciation of 100 per cent.
Firas Al Msaddi, CEO of fäm Properties, said, "These transactions highlight rising land values in prime areas of the city and underline how Downtown Dubai's unique blend of luxury residential, commercial, and leisure offerings has made it a top global destination for investors."
"In addition to its commercial appeal, Downtown Dubai is a major tourist destination, attracting millions of visitors annually to its world-class attractions, luxury hotels, and fine dining establishments. This dual appeal makes it a unique investment opportunity."
Home to world-famous landmarks such as the Burj Khalifa, The Dubai Mall, and the Dubai Fountain, Downtown Dubai has seen land values appreciate significantly over recent years, driven by strong demand and limited supply.
The three major plot sales in quick succession last month spotlight the increasingly buoyant nature of the Dubai real estate market following last year's all-time peak of 180,900 property transactions worth AED522.1 billion.
Investors notched up record profits of almost AED60 billion from Dubai's re-sale market in 2024. The secondary market generated capital gains of AED 59.7 billion, 34 per cent up in 2023, completing a dramatic 1300 per cent increase over the last five years.
"The rapid appreciation of land is a testament to investors' confidence in Dubai's future," said Al Msaddi. "This is the result of the strict regulations, digital transparency tools, and long-term development strategies initiated by the Dubai Land Department and the Dubai Government.
"Buyers and investors see this as a secure, transparent market and have gained trust in real estate professionals to help them capitalise on Dubai's status as a premier investment destination. This is an exciting time for the industry, and we look forward to seeing continued momentum in the market."
