Dubai property transactions drop in the first half of 2018

Real estate transactions in Dubai dropped by 15.9 per cent in the first half of 2018 to reach Dhs111bn, according to the latest data issued by the Dubai Land Department (DLD).

In comparison, the value of transactions stood at Dhs132bn for the first half of 2017, at Dhs113bn for the first half of 2016 and at Dhs129bn for H1 2015.

Also read: Dubai sees 16.8% increase in real estate transaction values in H1 2017

According to DLD’s report, a total of 27,642 transactions were recorded in H1 2018 including 18,191 sales deals worth about Dhs40bn, 7,668 mortgage transactions worth over Dhs57.6bn, and 1,783 other transactions valued at Dhs13.4bn.

The report revealed that during the period, a total of 19,371 investments were made through 15,659 investors, totalling Dhs37bn.

UAE nationals topped the list with 2,986 investments worth Dhs6.8bn, followed by Indian nationals (Dhs5.9bn through 3,218 investments) and nationals from Saudi Arabia (Dhs3.7bn through 1,415 investments).

The list of top 10 investors by nationality also included Dubai residents from Britain, Pakistan, China, Egypt, Jordan and France, respectively, DLD said.

The total volume of GCC nationals’ investments in Dubai’s real estate exceeded Dhs11.6bn through 4,919 transactions made by 3,700 investors, while foreign nationals from 143 nationalities recorded over 11,889 transactions with a total value exceeding Dhs21bn.

Sultan Butti bin Mejren, director general of DLD said: “Granting investors a UAE residency visa for up to 10 years and reducing government fees included in previous initiatives will be of the most important incentives for economic growth in the emirate, as they will have a positive impact on reducing business costs and will support Dubai’s position as one of the best investment destinations in the world.”

In May, the UAE introduced a new visa system that will allow property investors to stay in the country for up to 10 years.

Read more: UAE’s 10-year visa expected to boost property market

The Dubai government also announced several measures to reduce the cost of doing business in the country.

“We were quick to adapt and align ourselves with these decisions,” said Bin Mejren. “The 4 per cent penalty that property owners were incurred for failing to register their developments within 60 days has been waived. This underpins the government’s efforts to provide the best possible services to investors and developers alike.”

The report also identified that top 10 areas in terms of volumes and values of real estate transactions in the Dubai market during H1 2018.

Business Bay topped the list with 1,934 transactions worth almost Dhs4.2bn, followed by Dubai Marina with 1,445 transactions worth Dhs2.9bn, and Al Merkadh with 1,262 transactions valued at Dhs2.1bn.

Al Barsha South Fourth, Al Warsan 1, Jebel Ali First, Al Hebiah Fourth, Al Thanayah 5, Burj Khalifa and Al Yelayiss 2, rounded off the top 10.

In terms of mortgages, Dubai Marina topped the list with 498 transactions worth over Dhs1.7bn, followed by Jebel Ali First, Business Bay, Al Thanyah Fifth, Al Barsha South Fourth, Nad Al Shiba First, Wadi Al Safa 5, Palm Jumeirah, Burj Khalifa and the Thanyah Fourth.

Also read: Revealed: Where Dubai property rents, prices decreased the most in H1 2018

Bin Mejren stressed that the emirate’s real estate market has matured adequately “to maintain its sustainable growth”.

“Expo 2020 is close at hand, and developers in the market are expressing interest in aligning with the directives of the leadership to turn Dubai into an attractive investment hub in support of Dubai Strategic Plan 2021,” he said.