Dubai's real estate market is experiencing a significant rise in land prices largely fueled by a booming off-plan sales sector which has reached Dh179.3 billion in the first nine months of this year, a 42% increase compared to 2023.

Off-plan transactions now represent about 55% of the market with a 44% jump in the number of transactions and an average price per square foot rising 15% to Dh1,600. It is noted that this growth is prompting developers to seek new land driving prices higher, especially in developing areas. Land availability has sharply declined over the past five years particularly in prime locations like Business Bay where the number of plots has dropped from 100 to just nine and prices have doubled or tripled since before COVID-19.

The demand for larger plots for community developments is even more constrained making it challenging for private developers. Villa and townhouse plots are also appreciating significantly for instance in Jebel Ali Hills, prices have surged from Dh70-80 to Dh250-300 per square foot.

With the off-plan market poised for further growth, 2024 is set to be a record year for new project launches. However, investors should proceed with caution. Here are three strategies for success:

1. Choose a Trusted Expert: Find a real estate professional who aligns with your goals and can identify suitable opportunities.

2. Inspect Properties Personally: Always visit properties before buying to assess their condition and potential.

3. Use Reliable Market Data: Stay informed with up-to-date information from the Dubai Land Department to make informed decisions.

Smart investing in Dubai's real estate can be rewarding but vigilance and informed choices are crucial.