With transactions steadily rising since 2016, price of land in freehold areas of Dubai have risen 13% in the first six months of the year, a new report reveals.
According to data from Reidin-GCP, returns on land transactional activity had outperformed that on Dubai residential units by more than 50% over the last 14 years, Arabian Business reported.
Though transactions have been rising since last year, prices have just begun appreciating this year, the report highlighted.
“We expect land transactional activity to continue to gather momentum as the World Expo approaches [in 2020], consequently pushing prices higher,” it said.
The report also said that number of Dubai construction permits issued rose 38 percent increase in 2016 compared to the year before, according to official data.
As for the overall Dubai real estate market, a report by property consultancy CBRE revealed last week that residential sales values in the city will continue to decline throughout H2 2017.
CBRE noted that the Dubai rental market looks set to experience “further deflationary pressures, broadening the tenant-led market, and ultimately handing bargaining power to new tenants”.
With these pressures taking shape this year, rent prices are expected to continue to soften, with flexibility on the number of cheques, and even rent-free periods for some secondary locations to be expected.