The power and potential of plots is incredible. As Dubai continues to release more areas for the freehold purchase of land, the freedom to design, develop and profit from these opportunities based on budget and requirements grow, too.
The basic terminology behind land development: including FAR (Floor to Area Ration), GFA (Gross Floor Area), BUA (Built Up Area), NLA (Net Leasable Area) and NSA (Net Sellable Area) can be discussed further with your Plot Specialist to help determine the size, costs and potential returns on your investment in plots, and should be something you have a grasp of when you are ready to move forward with your land strategy. We will explore these key terms further in future posts, but for now you can find the definitions here.
Now, what makes investment in land a great strategy?
Let us take a walk through the key points, highlighted by current land opportunities available in the Dubai market, today.
The chance to build to your design, specification and timeline means the creative freedom to develop to your desire. The amount of creative freedom ranges from area and governing authority, but as a general rule, you have the flexibility to create something really signature.
For villas, this is an advantage over ready properties that have been designed by the experts, but not built specifically for you. Floor plans are primarily consistent over the master plan of a project, with maybe up to two types per bedroom unit, which comes at compromise on the client’s part for living in a certain community. So, if you wanted an upstairs family room in Lila, Arabian Ranches 2, you would be looking at a 5BR type.
In Al Wasl, before, the only option to live in this community was to pay high rents for old villas, often in need renovation and built to a finishing and layout that do not meet or suit your needs. But, with the launch of freehold plots in Dubai’s original residential community, a client can design and build a custom villa in a fantastic location, surrounded by the best beaches and areas like Jumeirah, La Mer and City Walk. Making it a great investment opportunity whether the owner builds to live, lease or sell at a profit.
A ready home can save you up to 50% in comparison to neighboring ready properties. As outrageous as that statement sounds, it is absolutely feasible. The cost to construct is a range from standard to high-end finishing, which is completely based on your discretion and intended use for the property. Will it be personal, or a part of your leasing portfolio? You can go through the calculations with your Plot Specialist to determine the final budget.
NAS Gardens offers a collection of 100% freehold villa plots ranging in sizes from 5,000 - 10,000 sqft, with another dedicated zone for low-rise residential buildings. You can build to permissive designs, specifications and timeline, at the very center of Dubai’s newest downtown district: MBR City. With an extended timeline to complete, payments can be as easy as you would like them to be, making financial sense – even when you factor in renting until your signature home is complete. In addition to what you save for building signature, you will see the value of your property grow along with the development of the area.
Exclusive & Exceptional
Some of the most prime of plot selections are those in stunning signature locations with offerings that rival neighboring communities.
If you wanted to build an island escape in the middle of the city, Jumeria Bay is the 6 million sqft purpose-built island accessible by a 300M road bridge just off Jumeirah Beach Road. Villa plots here are classed as some of the most premium on offer: stunning views, excellent location, sea-facing, high-end living facilities & amenities in a gated community on a private island resort shared with the world-class Bulgari Resort & Residences development. This is an extremely unique project that is high in demand, but with low and controlled supply.
Waterfront properties are strategically developed to give residents access to the best in lifestyle options, and investment trends show waterfront properties can be worth 60+% more than equivalent inland properties. Added bonus, Dubai’s year-round ‘beach’ weather, means homeowners can maximize the benefits of living waterfront.
Now imagine the potential returns on a residential tower built directly off Sheikh Zayed Road, surrounded with a high density of retail outlets. Future tentants would benefit from metro access to the entire Emirate, proximity to Downtown Dubai, and all the advantages that come with Jumeirah-living. A tower here would capitalize on significant development in Dubai’s most central and diverse district. Al Satwa Redevelopment Project is set to emerge as a medium density, mixed-use neighborhood that features residential apartments, retail spaces, offices, public facilities, hotels, and parks. You can buy, build and lease at around 11% ROI. Developments in prime locations can sell at around a 6% return, which also creates an opportunity to develop to sell at an average 74% ROE. You can talk numbers with your Plot Specialist to get a more personalized calculation.
Land is Limited
That is the simple truth, and value behind land. Yes, is it possible to increase land in an area to some extent by reclaiming the sea or through deforestation. But as a general rule, plots are a finite resource with a fixed supply - especially in high density areas. Once that supply is diminished, prices rise as they become more desirable, sometimes sharply, based on district, surroundings and availability.
With every launch of land in Dubai, the opportunities come to those who act first. Seizing prime plots in prime locations to develop, or hold is key to future returns.
Are you ready to discuss land opportunities before they diminish?