Another Dubai Project from 2005, Lifestyle City, Finds a New Buyer

Dubai continues to revive its legacy projects from the mid-2000s, with Lifestyle City, originally launched by ETA, now attracting renewed interest.

Recently, 68 plots within Dubai Lifestyle City fetched Dh175.6 million from a single bidder. Situated in Dubailand, the area has seen substantial infrastructure development in recent years, which bodes well for the project’s new owner.

Interestingly, Lifestyle City had previously failed to attract bids in two separate auctions. Initially conceived as an upscale residential community, it was one of the pioneering private developments in Dubai’s freehold sub-market, previously dominated by Emaar and Nakheel.

This auction marks the second significant sale of a 2005-era project in Dubailand, following Falcon City’s sale of 794 plots for Dh1.3 billion, down from an initial Dh2.5 billion listing.

In Dubai’s current real estate boom, investors and developers are capitalizing on the potential of reviving older projects. Despite the need for extensive redesigns and repurposing efforts, buyers view these ventures as worthwhile investments. For sellers, such auctions also help clear debts, presenting a mutually beneficial opportunity.

Fadi Massouh, CEO of Ai Real Estate, emphasized the value in acquiring land through auctions for those looking to invest in legacy projects. This trend includes the sale of the luxury ‘Pentominium’ skyscraper site in Dubai Marina, now set for a Six Senses branded development under Select Group.

As land availability diminishes in established freehold zones, developers are increasingly turning to auctions to secure plots. Land prices have surged over the past two years, doubling in some locations, prompting collaborative efforts among developers to pool resources for new projects.

Overall, Dubai’s approach to auctioning off historic developments reflects a strategic move to rejuvenate its real estate sector amidst evolving market conditions.