Dubai recorded real estate transactions worth Dhs61 billion during the first quarter this year, up 38 per cent from the same period last year, according to the latest report from the Dubai Land Department (DLD).
The emirate saw almost 15, 694 real estate transactions during Q1 2014, up 11 per cent from the corresponding period last year.
There were around 11, 567 sales activities worth Dhs31.5 billion and 3,482 mortgage transactions worth Dhs28 billion, the report said.
Other categories accounted for Dhs1.7 billion from 636 transactions, bringing the total value of transactions to more than Dhs61 billion, the DLD said.
Sales and mortgages relating to land transactions constituted the lion’s share of deals in Q1 2014 with land mortgages amounting to Dhs24.1 billion while land sales touched Dhs17.4 billion.
Residential unit transactions were the second highest during the period, registering sales and mortgages worth Dhs13 billion and Dhs3.1 billion respectively.
DLD also noted that there was an 81 per cent rise in the number of real estate investors in Q1 2014 compared to the same period last year.
“The figures issued by DLD ‘s Real Estate Sector Development Department confirm the increased activity in the city’s real estate sector,” said Sultan Butti Bin Mejren, director general of DLD.
“They prove that Dubai is attracting property ownership, whether for long-term investment or for personal housing needs.
“We anticipate this heightening of activity to continue over the coming years, with property buyers achieving good returns on their real estate investments. We believe that these returns will be significantly greater than those from other economic sectors,” he said.
Bin Mejren added that he expected the remaining quarters of this year to be similarly active due to the emirate’s disclosure of its preparation plans for Expo 2020.
Areas such as Al Hibiya 3, Dubai Marina and Al Thaneya al Rabe’a were the most attractive areas for selling land buildings and residential units, the DLD said.
Dubai’s property sector, which saw a strong rebound in 2013 following a bust in late 2008, has continued to sustain the momentum this year.
Residential property prices in the emirate have risen by 30 per cent year-on-year as of February with apartments outperforming villas in the market, according to a recent JLL report.
Although prices for most locations remained shy of their 2008 peaks, some areas have recorded peak levels, the report said.
JLL predicted that Dubai’s house prices are expected to rise further in 2014 but at a slower pace.