The total value of real estate transactions recorded in Dubai fell 7.6 per cent to Dhs218 billion in 2014, down from Dhs236 billion in 2013, according to the latest report by the Dubai Land Department (DLD).
The report indicated that there were about 53, 871 transactions across the emirate last year.
Sales accounted for the majority of transactions in Dubai, with values exceeding Dhs112 billion in 2014, the report said.
The market recorded 12,511 mortgage transactions worth Dhs97 billion, while the remaining operations accounted for 3,227 transactions with a total value of Dhs10 billion.
Sales and mortgages relating to land transactions recorded more than Dhs157 billion in 2014, with a total of 14,939 transactions, DLD said.
The Al Thenaya Al Thaletha area in Dubai was the most attractive for investors, with the value of its transactions from sales of lands reaching Dhs4.71 billion last year.
This was followed by Al Thenaya Al Khamesa with a total of 1,016 sale transactions worth Dhs4.29 billion and Al Barsha South 4, which had up to 910 transactions worth Dhs4.58 billion.
Business Bay recorded the largest number of apartment sales with 4,315 transactions worth Dhs7.20 billion, followed by Dubai Marina, which registered sales worth Dhs9.17 billion.
Dubai’s property prices have rebounded strongly in the last two years, reaching pre-crisis levels in 2008. Such a rapid recovery in prices also triggered fears of another real estate bubble in the emirate.
In order to curb the growth in property prices, the government doubled the property transaction fee from two to four per cent in 2013. The land department also introduced a cap on mortgages for first time and second-time buyers last year.
Industry experts have said that such steps have been instrumental in slowing down the rate of growth in Dubai’s real estate market.
According to the latest report by property consultant CBRE, home prices in Dubai rose just two per cent quarter-on-quarter in Q4 2014, following a three per cent growth in the third quarter.