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Dh100-billion DIFC expansion: Zabeel District’s residential units see strong demand
Price is expected to be around Dh3,700 per sqft, and investors could see up to 100 per cent capital appreciation in 6 years, according to industry executives
- PUBLISHED: Sat 7 Feb 2026, 1:04 PM UPDATED: Sat 7 Feb 2026, 1:06 PM
The Dubai International Financial Centre (DIFC) has opened the expression of interest for residents and investors who want to buy property in the Zabeel District’s residential units.
“People who are interested should submit their expression of interest for us to consider their application. The initial response is very good,” said Arif Amiri, CEO of DIFC.
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The project features 1, 2, 3 and 4-bedroom apartments.
Amiri said prices of the residential units will be revealed in due course.
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On January 27, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, announced the launch of the second phase of the DIFC expansion – Zabeel District – at an estimated cost of Dh100 billion to position the city among the world’s top four financial centres.
The limited availability of prime residential units in the area and the central location will be key drivers of the demand of the Zabeel District residential units.
“Demand should be very strong. DIFC has historically had a limited residential supply, with relatively few new projects introduced over recent years, while the appetite for living in and around the district has steadily grown. From a buyer profile perspective, we expect interest to be led by end-users and long-term owners, alongside investors targeting resilient, core locations where demand remains structurally undersupplied,” said Farooq Syed, CEO of Springfield Properties.
Rohit Bachani, co-founder of Merlin Real Estate, said DIFC has limited existing residential stock.
“With only around 463 units in Phase 1 and ultra-limited inventory overall, scarcity should support healthy demand. Early expressions of interest are already indicating that this will be a tightly subscribed launch. Given the scale of DIFC’s workforce (tens of thousands of professionals and corporate tenants), there’s a built-in base of potential renters and buyers who prefer living near where they work. That adds stability to both rental and sales demand,” he said.
Price and returns
Based on what’s currently available and market expectations, Bachani sees the first phase as pricing starting from around Dh2.6 million for 1-bedroom units, with larger 2-, 3-, and 4-bedroom units and duplex penthouses commanding higher premiums.
“Early projections by market sources suggest rental yields in the range of 6–8 per cent once the district becomes more mature, benefiting from corporate tenancy demand and limited residential supply. Capital appreciation over the medium-long term could be supported by Dubai’s broader strategy to develop DIFC into a global financial centre with integrated living, culture, retail and leisure, essentially creating a ‘city-within-a-city’ appeal that drives price growth,” he added.
Based on current positioning and the market context, Farooq Syed expects launch pricing to be around Dh3,700 per sq ft.
“In terms of returns, for prime, supply-constrained locations of this calibre, investors typically look at a blend of capital appreciation plus rental strength over the medium term. If the product is delivered at the quality level expected and absorbed well by the market, buyers could potentially see meaningful upside over a 5–6 year horizon — in the range of 50 per cent to 100 per cent capital growth is possible in a best-case scenario, though this will ultimately depend on launch pricing discipline, broader market conditions, and delivery timelines. This is exactly why EoI demand will be a key early signal,” Syed added.
Among Dubai’s top 10%
Zabeel District sits among Dubai’s most premium residential addresses.
Farooq Syed said waterfront ultra-prime markets, particularly Palm Jumeirah, typically command the very top pricing due to scarcity and waterfrontage.
“DIFC is not waterfront, so the pricing drivers are different. That said, DIFC has always ranked within the top tier of Dubai locations, and Zabeel District strengthens that positioning further by expanding a globally recognised business and lifestyle ecosystem. We expect it to remain in the top 10 per cent of Dubai’s residential market in terms of pricing and demand, particularly for buyers prioritising centrality, brand credibility, and long-term liquidity,” added the CEO of Springfield Properties.
Given that the development is planned as a luxury, integrated urban destination, Rohit Bachani believed that it could rival some of Dubai’s most expensive residential offerings, particularly for unique product types like duplex penthouses with panoramic skyline views and ultra-limited supply.
“However, the most expensive properties in Dubai are largely found in ultra-exclusive, fully built-out master developments such as Emirates Hills, Palm Jumeirah mansions, and District 1 villas, with some of them trading at multiple tens of millions of dirhams. Zabeel’s first phases will likely be priced lower than those estates initially. To surpass the very top end, the district would need to fully mature as a residential lifestyle destination with sustained demand from ultra-high-net-worth buyers. That’s possible over the long term, particularly if the overall DIFC ecosystem continues to evolve into a global financial and cultural hub,” he said.
