Dubai: One of the emirate's most prominent stalled developments has finally changed hands. Dubai Lifestyle City — a Dubailand project originally launched in 2005 — has secured a new buyer after its 68 plots were sold for Dh175.6 million at auction, marking a significant step in Dubai's ongoing revival of legacy real estate assets.
Dubai Lifestyle City Sold After Two Failed Listing Attempts
The sale stands out for more than just its price tag. Not a single competing bid was placed — only one entity stepped forward to acquire the 68-plot project. That outcome, while striking, is less surprising given the project's track record: Lifestyle City had been listed for auction twice previously without attracting a single offer.
Originally announced in the mid-2000s by ETA Star Projects, a division of the ETA-Ascon business group, Lifestyle City was conceived as an upscale residential community in Dubailand. The development promised buyers high-style living in luxurious homes inspired by Tuscany, complete with a golf course, hotels, a spa, and a shopping mall spread across a four-million-square-foot master plan.
The timing was telling. At the point of its launch, Dubai's freehold residential sub-market was dominated by Emaar and Nakheel, while private developers gravitated largely toward tower projects. Lifestyle City represented a relatively early bet on villa-style master communities by a private player — a bet that was cut short by the 2008 global financial crisis.
A Wave of Legacy Dubai Property Revivals
The Lifestyle City transaction is not an isolated event. It is, in fact, the third project launched between 2005 and 2008 to be returned to active development through an auction process.
Earlier, the Falcon City development in Dubailand attracted attention when 794 plots were sold for Dh1.2 billion — well below the original listing price of Dh2.5 billion. The Dubailand location that once looked overextended now benefits from a decade of infrastructure investment, making it far more attractive to new buyers.
Meanwhile, in Dubai Marina, the site of the ill-fated Pentominium supertall skyscraper was acquired for $100 million and is being transformed into a Six Senses branded project by Select Group — another signal that even the most troubled assets of the boom era now have a credible path to completion.
Investors Eye Dubai's Liability-Free Land Banks
Real estate advisers say the auction mechanism is proving an effective route for clearing distressed legacy assets — and an attractive entry point for investors.
"Many of these projects had to be auctioned because of previous problems and creditors' claims," said Fadi Massouh, CEO of advisory firm Ai Real Estate. "Investors would be wise to use this route to acquire large land banks that are clear of liabilities."
The broader Dubailand area, where both Lifestyle City and Falcon City are located, has seen significant infrastructure development in recent years, improving the viability of projects that were once considered stranded. With Dubai's freehold land supply tightening in established zones, these legacy plots represent an increasingly rare opportunity for large-scale development.
