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Dubai property investment reaches Dhs 53bn in H1 2015

Dubai property investment reaches Dhs 53bn in H1 2015

Indians accounted for Dhs 7.8bn of transactions during the first half of 2015, DLD figures show

Total real estate investment in Dubai exceeded Dhs 53bn in the first half of 2015, according to a report from Dubai Land Department.

The report did not provide a comparative figure for the corresponding period in 2014.

Around 19,848 investors from 142 countries invested in Dubai’s real estate sector in the first half of this year, DLD said.

Of these, GCC nationals invested nearly Dhs 17bn in Dubai property with Emiratis contributing the most at Dhs 11.4bn.

Meanwhile, the report showed that 2,756 investors from 16 Arab countries completed transactions worth Dhs 6bn in H1 2015.

“Based on the strong performance of the market, we fully anticipate that the momentum will be continued throughout the next five years as we lead up to Expo 2020, the biggest marketing event in the world,” said DLD’s director general Sultan Butti Bin Mejren.

“The diversity in investors’ nationalities revealed by the report shows that the Dubai market is international and that investor confidence is increasingly being cemented.”

Dubai’s property sector also continued to see strong investment from foreign nationals.

According to DLD, Indians invested nearly Dhs 7.8bn into the property sector followed by British investors at Dhs 4.7bn. Pakistanis transacted about Dhs3.3bn in the property sector, becoming the third largest foreign group.

“The various financial rating agencies from around the world are very optimistic about the economic indicators of the United Arab Emirates in general and Dubai in particular, where all sectors show excellent growth rates year-on-year,” said Bin Mejren.

He attributed the figures to Dubai’s and the UAE’s diversification policies that have helped the country during a period of low oil prices.

“The Dubai real estate market is evidence of this success, with its ability to attract buyers from around the world. They have confidence in the future stability of the market and faith in the assurances provided in terms of a rewarding return on investment,” said Bin Mejren.

Dubai’s real estate sector, which was badly hit during the 2009 crisis, rebounded strongly in 2013 with prices soaring as high as 50 per cent.

However, low oil prices have dampened the emirate’s real estate sector. According to JLL, prices have dropped 8 per cent on average since June 2014, while apartment prices alone dropped 9 per cent year-on-year.

New supply of residential units is also pressuring price points.

An additional 1,200 units were completed in Q2, increasing total supply to 379,000 units, with a further 16,000 units expected by the end of 2015, according to JLL.

The firm said some of these units could be delayed if oil price volatility continues.

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