Dubai: Record Dh362 mln canal-front land sale sets a new benchmark for Business Bay

08/10/2025 03:51 AST

Dubai's property market continues to set new record as a prime, waterfront plot on the Dubai Water Canal in Business Bay was recently sold for a record-breaking Dh362 million, reflecting a market that remains exceptionally liquid.

Positioned on the Dubai Water Canal and among the last true canal-front opportunities in Business Bay, the corner site offers an ideal platform for a mixed-use project and premium retail.

It opens directly onto the canal boardwalk for effortless walking and cycling, with swift links to Sheikh Zayed Road and Al Khail Road. Looking ahead, planned stations on the Zabeel Track, Gold Line, and Express Line within roughly 500 metres will further strengthen connectivity.

Dubai's Business Bay continues to solidify its position as one of the city's most sought-after real estate destinations, driven by robust investor demand and strategic urban development. According to recent market data, land plot prices in Business Bay have appreciated by approximately 16.7 per cent year-on-year, with average rates rising from Dh1,800 to Dh2,100 per square foot. This surge reflects growing confidence in the area's long-term value, especially for mixed-use and commercial developments.

The seller of the plot was Mukarrib Holdings, and the transaction was brokered by Driven | Forbes Global Properties.

"Dubai's residential and development land markets continue to show depth and pace. We're seeing steady absorption, disciplined supply, and a clear premium for the best locations, especially on the waterfront, with no signs of slowing," said Abdullah Alajaji, Founder & CEO of Driven | Forbes Global Properties.

Developers continue to face a constrained pipeline of prime plots, with waterfront sites being exceptionally rare. Business Bay remains one of Dubai's top-selling communities, supported by robust off-plan activity. That context of limited supply and durable demand helps explain a record-setting Dh362 million land price for a site with this visibility and scale.

According to data from DXBInteract, the median price per square foot in Business currently stands at around Dh2,434, a rise of 7.3 per cent year on year. A total of 10,682 transactions have been recorded this year, a gain of 19.4 per cent year on year.

The district's appeal lies in its central location, proximity to Downtown Dubai, and a growing portfolio of luxury residential and commercial projects.

"Between the buildable area, height, and location, there's real room to design something special," said Lina Allaoa, Associate Partner at Driven | Forbes Global Properties, who acted as an advisor to Mukarrib Holdings.

"It's the kind of waterfront living that international buyers and brands consistently ask for: high quality, easy to enjoy, and well connected," added Kianoush Darban, Associate Partner at Driven | Forbes Global Properties.

Looking ahead, analysts expect continued upward momentum, supported by Dubai's expanding economy, increasing foreign investment, and the city's push toward becoming a global business hub. With infrastructure upgrades and waterfront enhancements underway, Business Bay is poised to remain a cornerstone of Dubai's real estate growth story.

Khaleej Times