Good news for Dubai's real estate as deals boosted by $31 billion
The launch of mega projects and renewed investor confidence have boosted real estate transactions in Dubai to Dh113 billion ($31.3 billion) for the first half of the year, the Dubai Land Department (DLD) revealed on Wednesday.
Sales accounted for 54 per cent of the total transactions for January to June period, numbering 22,096 deals worth Dh61.5 billion ($17 billion). The combined number of all transactions for Q1 and Q2 was 30,380, according to DLD’s Real Estate Research and Studies
“The Dubai Real Estate market has become the focus of attention for an increasing number of investors from around the world. This interest can be attributed to several reasons, most importantly the renewed confidence in the Dubai market after the city’s winning bid to host World Expo 2020,” said Sultan Butti bin Mejren, director-general, DLD. The real estate market in Dubai was able to regenerate and offer a variety of products to attract investors, said Bin Mejren, adding: “We believe that Dubai can sustain this level of attraction and build on the momentum that is developing from the increased demand.”
Jones Lang LaSalle head of research for Mena Craig Plumb told Khaleej Times: “The strong sales activity seen during the first half of 2014 demonstrates the continued attraction of the Dubai real estate market, as the emirate continues to benefit from its status as a safe haven for local and regional investors.”
Mortgages comprised 42 per cent of DLD’s dealings for the first half of the year, with a total of 6,922 mortgage transactions worth Dh47.3 billion being conducted. The number of other property transactions was recorded at 1,389 with a total value of more than Dh4.6 billion. DLD reported Dh61 billion transactions for the first quarter of the year.
Bin Mejren said: “The growth in the volume of property investments is down to the wise economic policy pursued by the Government of Dubai over the past months and years. This policy has included the launch of mega projects such as the recently announced Mall of the World, which have been designed to keep Dubai’s real estate market ahead of the global competition. These projects have been launched alongside initiatives that encourage investment and new laws and legislation that ensure a healthy pace of market growth.”
Sales relating to land transactions accounted for the lion’s share of real estate transactions for the first half of 2014, with the Dh35 billion figure representing 5,516 deals. Sales relating to units totalled Dh24.7 billion for 15,997 transactions. Buildings transactions held the third place sales position with a figure of Dh1.8 billion, with the combined total for all three categories being Dh61.5 billion.
“Of particular interest is the high level of land sales achieved over the first half of 2014. This demonstrates that developers are once again seeking to increase their land banks. Developers are also now required to demonstrate 100 per cent ownership of the land before they launch any new projects,” Plumb explained.
An analysis of Dubai’s top investment areas over the first half of the year has revealed that Al Hibiya 3 occupied first position for land sales, with a total of 938 transactions worth Dh3.09 billion. This district was followed by Al Barsha South 4, Al Thenaya Al Khamesa, Wadi Al Safa 5 and Jebel Ali 1. Dubai Marina took first place in apartment sales, with the value of transactions in this prime area equating to Dh5.87 billion for 2,576 transactions.
- How to avoid turning your dream home into a nightmare
- The Kingdom will sure 'look different' by 2030: Saudi Arabia has 80 mega-projects up its sleeve
- Too pricey? MENA property hikes are off-putting for new buyers
- Fleeing war? UAE is the safe haven: Dubai property market is safe and secure according to a top banker
- CEO of the UAE's top developer, MAF Properties talks money and retail