Dh100bn DIFC Expansion Drives Strong Demand for Zabeel District Homes
- Feb 09, 2026
The residential offering within DIFC’s upcoming Zabeel District is generating strong market interest, with industry leaders projecting prices of around Dh3,700 per square foot and potential capital appreciation of up to 100 percent over the next six years.
Dubai International Financial Centre has officially invited expressions of interest from buyers seeking homes within the Zabeel District. According to DIFC, early demand has been encouraging, reflecting confidence in the expansion’s long-term vision.
Speaking on the response, Arif Amiri, Chief Executive Officer of DIFC, said interested buyers are being encouraged to submit EOIs for review, adding that the initial market reaction has been very positive.
The Zabeel District forms part of the second phase of DIFC’s expansion, announced on January 27 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. Valued at approximately Dh100 billion, the expansion aims to reinforce Dubai’s position among the world’s top four global financial centres.
Market experts point to the combination of limited residential supply and a prime central location as key factors driving demand. DIFC has historically seen a shortage of residential inventory, while interest in living within and around the district has continued to rise.
Demand is expected to remain strong, driven by end-users, long-term owners, and investors seeking stable, core locations with structurally limited supply.
Industry observers have highlighted the scarcity factor, noting that Phase 1 will offer only around 463 units. With DIFC’s workforce numbering in the tens of thousands, the district benefits from a built-in pool of potential tenants and buyers who value proximity to their workplace, supporting both rental and resale demand.
Pricing and Investment Outlook
Based on current market indicators, pricing for the initial phase is expected to start from approximately Dh2.6 million for one-bedroom residences, with larger apartments and duplex penthouses commanding higher premiums.
Rental yields are projected to range between 6 and 8 per cent as the district matures, supported by corporate leasing demand and the limited availability of residential units. Capital growth is expected to be driven by DIFC’s broader transformation into a fully integrated live-work-play destination.
Launch prices are anticipated to average around Dh3,700 per square foot. In prime, supply-constrained locations of this nature, investors typically benefit from a combination of rental income and long-term appreciation. In favourable conditions, capital growth of 50 to 100 per cent over a five- to six-year period is possible, subject to pricing discipline, market conditions, and delivery timelines.
Positioned Among Dubai’s Top Residential Markets
Zabeel District is expected to rank among Dubai’s most prestigious residential addresses. While waterfront locations such as Palm Jumeirah command the highest prices, DIFC continues to sit firmly within the city’s top-tier markets due to its centrality and global reputation.
Industry observers believe the expansion will further strengthen DIFC’s appeal as a lifestyle and business hub, keeping it within the top 10 percent of Dubai’s residential market in terms of pricing and demand.
Over time, as the district evolves into a fully established luxury urban destination, select residences—particularly limited-edition duplex penthouses—could compete with some of Dubai’s most premium offerings. However, surpassing ultra-exclusive villa communities will depend on long-term maturity and sustained demand from high-net-worth buyers.
Source: Khaleej Times
