And the rise looks only set...
The cost of land in Dubai is on the rise, with a 13 percent increase over the first six months of 2017, a report has found.
And the rise looks only set to continue as the World Expo 2020 moves closer, experts are anticipating some serious momentum ahead of the global event.
Dubai: Owning the Earth, a Report from Reidin – GCP, looks at the economic status of Dubai particularly focusing on the housing market, land transaction and price correlations.
In Dubai, looking over the last decade, land has significantly outperformed residential unites by more than 50 percent. As Dubai moves towards more and more urbanisation, land is becoming scarce and this is pushing the prices of said land higher and higher.
Development projects across the city are also significantly increasing, something that the report fully expects to continue.
“We opine that this pace will continue to accelerate as the deadline for World Expo approaches, pushing land prices higher,” the report says.
The transactional volumes and land prices in Dubai have been steadily rising since last year, and the prices have only just begun to reflect this rise with the aforementioned 13 percent increase over last year.
Again, with World Expo 2020, Reidin fully anticipates that this will continue to rise.
Looking at building permits, the report shows once more some interesting figures.
Permits represent economic growth, or at the very least, are used as an indicator for economic growth. Dubai has seen a 38 percent increase in construction permits, a “positive indicator as real estate is a key part of the Dubai economy.”
To crunch the numbers:
- Dubai has seen land prices increase by more than 50 percent over the last decade, outperforming readymade units
- Lad transactions have been on the rise since 2016 and process are reflecting this, with a 13 percent increase.
- There is a 38 percent increase in construction permits, a positive reflection on the growing economic status of Dubai.
- Prices are expected to continue to rise, with World Expo 2020 just around the corner, the report anticipates an “inexorable” rise,