Driven Properties has forecast an exceptional surge in property values in Dubai’s Canal Front district over the next year, with prices to swell by over 40%.
The Jumeirah Water Canal district has recently evolved into one of Dubai’s most vibrant and sought-after locations, often hailed as the city’s ‘new billionaire’s row’.
Offering a unique blend of waterfront living and urban convenience, the district boasts panoramic views, exclusive residential properties, and proximity to some of Dubai’s most iconic landmarks.
Current averages of AED 2,700 ($735.1) per sq ft are expected to rise to over AED 3,800 per sq ft, as property handovers commence and the community continues to flourish.
Driven Properties also announced the completion of an AED 259m acquisition of two prime buildings in the Canal Front district along the Jumeirah Water Canal.
This acquisition brings the company’s total investment in the Canal district, including existing and pipeline developments, to over AED 9bn.
This investment solidifies the company’s standing as the largest property owner in the district, positioning it to capitalise on the area’s rapid growth potential.
Facilitating this significant acquisition between Driven Properties and Mukarrib Holdings was Lina Allaoa, Associate Partner at Driven Properties.
“When Amalfi was launched at around AED 1,800 per sq ft on Jumeirah Bay Island, the writing was on the wall. We took a position and placed all our clients in that development. Today, prices there are up by a factor of four.
“Currently, Canal Front prices are trading close to replacement value. The last G+8 plot in the district sold for over AED 1,700 per sq ft on the GFA. When you factor in both soft and hard construction costs – even assuming 100% efficiency – as well as sales expenses, the overall development cost exceeds AED 3,000 per sq ft
“Owning at these levels is a no-brainer. This is especially true when compared to other canal developments currently averaging AED 5,250 per sq ft We see a convergence pattern emerging, similar to how Villa Amalfi prices caught up with other developments in Jumeirah Bay.”
Abdullah Alajaji, CEO and Founder, Driven Properties
It comes as an increasing number of millionaires are migrating to UAE. 128,000 millionaires are expected to relocate in 2024, beating the previous record of 120,000 set last year.
