The Land Prices in Dubai are now 50% cheaper than they were in 2008
The average land sales prices in Dubai in current times is on a half and half drop from the prices in 2007-2008. This clearly indicates that this is probably the best time to invest in those premium plots you have always had your eyes on. The average cost of Dh 325 per sqft, according to Reidin, is the same across freehold and leasehold areas compared to Dh 700 – Dh 800 circa 2007-08.
Upon this analysis by Reidin, the CEO of a major real-estate company Fam Properties, Mr Firas Al Msaddi commented: “That means huge savings in outlay and a properly planned development strategy can maximise the return on investment. Investors are taking advantage of the current low cost of prime land in Dubai to exploit profitable opportunities for development. Investors who fail to study the market in detail to ensure they pick the right plot and devise the correct development plan can destroy profits.”
Lower construction costs are also being considered as one of the most pivotal and triggering factor for this drop in the current land sales prices. As one a developer sells land, they calculate a cumulative price of all that goes in building it like raw materials, power and water resources, infrastructural costs etc. Therefore, due to a drop in the prices of all these construction materials, there has been a subsequent drop in land sales prices too.
The Managing Director & Group Head at ValuStrat Property Consultancy, Mr. Declan King states: “More competitive bidding is now taking place for build contracts – especially for larger projects with key developers,” adding: “Both contractors and consultants are open to negotiation – especially on key longer-term contracts with reputable developers. Service providers are keen to win longer-term jobs and benefit from the regular cash flow, staff utilisation and client credentials such engagements can offer.”
Thus, shedding some light on the importance and benefit of investing right now in these premium properties, Mr. Sailesh Israni- the Director of Sun and Sand Developers was recorded stating: “Current prices are near the sale price that master developers offer in most places and at a minimum premium in certain areas. If, however, land was sold in the secondary market at higher prices, then you get speculative figures. The analogy is if a raw material is at a competitive price, the finished product will be available at good prices. The credit also goes largely to the Real Estate Regulatory Agency for its effective policies that reduce market speculation. Now, only those buyers invest in land who intend to build a project on it.”
Hence, in the expert opinion of all these mega real-estate giants and property market observers, this is certainly the best time to invest in land sales right now. So, all those investors looking to make the best investment of their lifetime for their dream home, check out all the details on www.zooma.ae and we shall make your property quest the most fun and easiest experience.