What bubble? Dubai real estate transactions cross the $27 billion mark
The Dubai Land Department (DLD) has registered 26,645 real estate transactions worth Dh101 billion since the beginning of 2014.
DLD director-general Sultan Butti bin Mejren said on Monday that Dubai real estate market, which attracted a total of 16,743 investors in the first five months of the year, would continue the buoyant trend.
“The strong performance in the real estate sector indicates a trend that we expect to be sustained over the next year and beyond. The number and value of real estate transactions since the beginning of the year to date indicate both that investors have become more aware and that the market has become rich with investment options,” said Bin Mejren.
The real estate market in Dubai is showing a high degree of flexibility in dealing with the requirements of investors, especially new stakeholders entering the market for the first time to seize opportunities that have emerged in the wake of the price correction witnessed in the market over the past two years, he said.
He observed that the growth in demand from investors is the result of an improvement in fundamental economic factors rather than speculation.
Bin Mejren said the application of the real estate registration fee of four per cent helped ward off speculators who used to drive the market and contribute to a real estate bubble.
He said the registration fee applied in Dubai is still less compared with other countries. For instance, Britain imposed between four and 15 per cent, Malaysia between five and 10 per cent, France six per cent, Japan 5.8 per cent, India 7.3 per cent, Pakistan 7.8 per cent and countries in the Middle East and North Africa at 6.9 per cent.
Since Dubai — home to one of the strongest real estate markets internationally — has become a global player, fees for providing services have to be on a par with the city’s growth and development, said Bin Mejren.
He pointed out that the government’s efforts in continuously develop the infrastructure and encourage investment has increased the value of real estate many fold in comparison with the value 10 and 20 years ago. Property owners in Dubai reap healthy returns that are unprecedented worldwide, he added.