‘Optimistic mood’ in Dubai property market – DLD chief

A total of 150 real estate projects worth Dhs82bn ($22.3bn) were registered in Dubai in 2017, the Dubai Land Department (DLD) has confirmed.

In a statement, DLD also said that 90 projects were completed last year.

Sultan Butti bin Mejren, director general of DLD, asserted that there was “strong coordination” among all the relevant institutions to ensure “transparency in Dubai’s real estate market”.

He added that there is a “strong demand from developers to deposit the 20 per cent escrow of the total value of the future projects they intend to launch, as it enhances investor confidence in real estate development projects”.

Developers are required to verify ownership of the project and pay its value in full, in addition to receiving all approvals from the authorities.

They will also need to complete 50 per cent of a project before they can begin off-plan sales, according to media reports this week.

Read more: Dubai projects will need to be 50% finished before off-plan sales

“There has been an optimistic mood in market since the beginning of 2018,” added Bin Mejren.

However, in a report released this week, ratings agency S&P stated that the downturn impacting the Dubai property market is expected to continue for at least another two years.

The company said that prices and rents had declined the 5-10 per cent it expected last year and were likely to continue their downward shift for the foreseeable future.

Read more: Dubai real estate slump to continue for another two years – S&P

This followed a string of reports from real estate firms indicating a surge in off-plan sales by developers in 2017 but a continuation of a two-year slump in the market for finished property.

According to a report by Chestertons MENA, apartment and villa rents declined 3 per cent from the third to the fourth quarter of 2017 and sales prices were down 2 and 6 per cent respectively.