STOCK Falcon City
The original version of the Falcon City is on display in this file picture from a Dubai property show. Image Credit: Gulf News Archive

Dubai: Potential investors clearly are playing the waiting game on the 15.3 million square feet land in Dubai that’s up for auction. After initially setting a base price of a substantial Dh2.57 billion, it’s now been cut to Dh2.45 billion after receiving no bids.

The land represents part of the Falcon City of Wonders, one of the legacy developments launched in the initial phase of Dubai announcing freehold rights to all in the early 2000s.

The 15.3 million square feet is split into 794 plots, which can be developed townhouses, a hotel, residential and hotel apartments, offices, retail outlets, and even a mall and theme park. Together, this represents one of the biggest chunks of land that’s come up for sale via Emirates Auction, according to multiple industry sources.

This particular auction had immediately grabbed the attention of Dubai property market stakeholders for its sheer size, the amount that the seller was hoping to get, and all the intricate details if the transaction was effected.

“Bidders will see if they can get better price breaks from the seller, that’s the nature of the auction game when it comes to land and property,” said a developer. “The Dh2.57 billion listing was clearly meant to see how the wind was blowing. Of one thing there’s no doubt - it will be an interesting transaction when it happens.”

True that.

Falcon City already has an established resident base spread over its completed residences. And in the immediate phase when Dubai property market was regaining its momentum after the Covid strike, this development was one of the big beneficiaries.

“Residents wanted to move into bigger homes and Falcon City had many of those,” said an estate agent. “That late 2020-2021 phase was quite active for the villas and townhouses in the project, especially the completed and ready ones.”

Along with some of the established Emaar villa communities and Damac Hills, the residences at Falcon City also figured prominently in secondary market buying and selling during the period.

After COVID-19, end users in Dubai went heavy on bigger home, which is when villas and townhouses had their big moment.

Prices at Falcon City

Current listings on Property Finder for a 3-bedroom villa at the development shows Dh3.3 million and Dh6.99 million for a 5-bedroom home.

“The secondary market for existing Falcon City homes is running good, especially among a lot of end-users and first-time Dubai investors,” said the agent. “Independent homes with ample space continues to generate demand, for investors interested in non-waterfront locations in the city.”

What next at the auction

Potential investors will have to decide whether at Dh2.45 billion they should start making those first bids. Or will they wait on to see if the seller decides to make another attempt by cutting the price again.

For a buyer, there are benefits to be had. As said before, Falcon City benefits from having an established resident base, and the infrastructure is also there. Plus, being part of Dubailand – home to multiple popular communities - has its own advantages.

On top of all that, there is still the persistently high demand for villas in Dubai. Much of the ready stock has been sold and the market is awaiting the next round of new launches, with The Oasis from Emaar and those from Sobha Realty figuring on the investor radar.

“If the buyer of the Falcon City land can promise investors new quality builds in a defined timeframe, the project can be a hit with buyers,” said an analyst. “I think the next 3-4 years should see a sustained level of buying interest for mansion, villas and townhouses in Dubai.

“It’s a good window of opportunity.”

So, who’s up for that 15 million square feet?