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Dubai’s property market has once again demonstrated its resilience and liquidity, with a canal-front plot in Business Bay selling for Dh362 million, setting a new record for land transactions in the district.
The sale, facilitated by Driven | Forbes Global Properties, involved Mukarrib Holdings as the seller and an undisclosed buyer. The plot, one of the few remaining true waterfront sites along the Dubai Water Canal, offers potential for a high-end mixed-use development and luxury retail outlets.
Located at the corner of Business Bay’s canal promenade, the site provides direct access to Sheikh Zayed Road and Al Khail Road, and opens onto the pedestrian-friendly canal boardwalk. Planned Gold Line and Express Line stations, roughly 500 meters away, are expected to enhance connectivity further once operational.
Market Confidence Reinforced
The record-breaking deal underscores ongoing investor confidence in Dubai’s real estate market, particularly in central districts with limited waterfront supply. According to data from DXBInteract, land plots in Business Bay now average Dh2,434 per square foot, a year-on-year rise of 7.3%.
Over 10,600 transactions have already been registered in the area this year, marking nearly a 19% increase from 2024. Local brokers say this momentum reflects both strong domestic liquidity and renewed interest from global investors seeking secure, high-yield assets amid volatile global markets.
Market data compiled by CityNest Realty from Dubai Land Department (DLD) and Property Finder indicates that Business Bay’s average land price range has climbed from Dh1,800 to Dh2,100 per sq ft, representing an annual gain of nearly 17%.
“The depth and pace of Dubai’s residential and land markets remain robust,” said Abdullah Alajaji, Founder and CEO of Driven | Forbes Global Properties. “We’re witnessing consistent absorption, disciplined supply, and a strong premium for prime waterfront locations – with no signs of slowdown.”
Limited Supply, Expanding Demand
Industry experts point out that true canal-facing plots in Business Bay are now exceptionally scarce. Developers are competing for such limited parcels, where visibility and proximity to Downtown Dubai provide unmatched value.
“The scarcity factor plays a major role here,” said Lina Allaoa, Associate Partner at Driven | Forbes Global Properties, who advised the seller. “Between the buildable area, height allowance, and waterfront frontage, this is a site where something truly iconic can be created.”
Business Bay’s appeal extends beyond location. It has matured into one of Dubai’s most active off-plan zones, hosting a range of mixed-use towers and luxury residences that cater to both investors and end users. According to Bayut’s 2025 mid-year report, the area remains among the top five most-searched communities for property investment, driven by rental yields averaging 6.5% to 7.2% for high-end apartments.
A Symbol of Dubai’s Urban Evolution
Business Bay was originally envisioned as a commercial hub mirroring Manhattan’s energy, but over the past decade, it has transformed into a mixed urban core. Today, it offers a balance of residential luxury, retail lifestyle, and corporate vitality, supported by infrastructure upgrades along the canal corridor.
Recent investors in the district say that the area’s evolution – from a construction zone in the mid-2000s to a globally recognized address – reflects Dubai’s broader urban development strategy. “It’s not just about real estate anymore; it’s about lifestyle integration,” noted a local property consultant.
Waterfront development remains one of Dubai’s defining investment themes. Limited availability of such plots, coupled with rising construction costs and design regulations, has created a premium tier for landowners seeking long-term capital appreciation.
Economic Outlook and Broader Impact
Analysts believe that Dubai’s expanding economic base, diversified beyond oil and tourism, continues to underpin real estate growth. Sectors such as finance, technology, and trade logistics have spurred demand for premium housing and mixed-use developments near the central business corridor.
Dubai’s government initiatives – including Golden Visas, foreign ownership rights, and developer-friendly policies – have reinforced investor confidence. In this environment, record transactions like the Dh362 million sale serve as signals of sustained market depth rather than short-term speculation.
“High-quality waterfront assets are increasingly viewed as global commodities,” observed Kianoush Darban, Associate Partner at Driven | Forbes Global Properties. “International buyers consistently ask for locations that combine architectural distinction, lifestyle value, and long-term growth potential – and Business Bay fits that profile perfectly.”
CityNest Realty View
The Dh362 million canal-front transaction marks a turning point for Business Bay’s land market. With infrastructure maturing and supply tightening, prime waterfront plots are expected to command even higher premiums through 2026.
Written by: Real Estate Market Analyst, CityNest Realty
It’s one of the highest land transactions in the area, highlighting investor confidence and the rising value of prime waterfront locations in Dubai’s central business district.
According to market data, average prices have risen 16-17% year-on-year, with limited supply and strong off-plan activity driving the upward trend.
These plots combine central access, scenic canal views, and future infrastructure connectivity – a mix that appeals to both developers and global investors.
