Dubai real estate land values up! Indian real estate developer confirmed interest!

The Expo 2020 effect is already starting to show up in Dubai’s real estate land values. This includes commercial properties as well as residential real estate properties. In the days immediately after the win, asking prices at some of the emirate’s emergent real estate freehold master-developments have seen an appreciable spike.

Indian real estate master-developer Sunteck Realty has confirmed interest in possible development activity, most likely with super-premium residential projects in the city’s recently created master-developments. “It could take the form of a joint venture model or as joint developers,” said Kamal Khetan, chairman and managing director.

“Unlike some Indian real estate developers who spread themselves wide, we remained focussed on select markets — Mumbai and Goa, for instance — and that too only with very high-end projects.

“An overseas venture for us is not about playing on the currency; our P&L is derived solely from what we manage to do with the property itself.”

“The feedback has been that some plots in Dubai World Central has been pegged at Dh130-150 a square foot against the Dh90-110 a square foot earlier,” said Manish Khatri at the Dubai real estate brokerage firm Aqua Properties. “At MBR City, particularly in the areas closer to Meydan, some of the smaller plots are now demanding Dh300 a square foot against the Dh120-140 earlier.

“Master developers too have been offering incentives in terms of the payment structure because of the sudden price gains; for higher valued plots they are offering flexible payment plans and not an immediate upfront one-off.”

That the Expo 2020 win would prove a catalyst for new trends in Dubai’s real estate sector was a foregone conclusion. Opinion was only divided over when the impact would become noticeable. But some market sources believe after the initial rush towards higher values, things should quieten down in another six months or so.

While property values in Dubai have soared, for investors there is still the sizable gap that exists vis-a-vis the 2008 peaks. As the gap closes, this is where they hope to derive their margins from.