Real estate transactions in Dubai rose by 8 per cent in 2015 to reach Dhs 267bn, according to the Dubai Land Department.
The findings will come as good news for investors, who have experienced declining sales prices and rents over the last year. Residential sales prices declined 2 per cent quarter-on-quarter and 6 per cent year-on-year in Q3 of 2015 and real estate consultancy firms have predicted continued declines in 2016.
In its annual report, the DLD said that the results showed the Dubai market had reached a stage of maturity and rational dealing.
“If we look at the moves that have been recorded over the past year details, we can see clearly the optimal policies followed by senior developers to diversify their products and put forward their proposals to acquire full confidence on the part of customers and investors,” said DLD director general Sultan Butti Bin Merjen.
Sales for the year crossed the 48,000 mark with a combined value of Dhs 130bn. Mortgages accounted for 12,000 transactions with a total value of Dhs 117bn.
There was also Dhs194bn of sales and mortgages related to land transactions. Around 40 per cent of these 16,751 transactions related to commercial land compared to 46,968 transactions worth Dhs 72bn for buildings and units.
The most attractive areas for buyers were Al Yafra 2 with 1,563 transactions worth Dhs 3.285bn and Al Hebeya 3 with 1,360 transactions worth Dhs 3.950bn. This was followed by Al Yafra 3 with 926 transactions worth Dhs 1.71bn.
In terms of unit sales, Business Bay was most popular with 3,212 transactions worth Dhs 4.95bn, followed by Al Hebiya 4 with 3,080 transactions worth Dhs 2.57bn. However, despite Dubai Marina being ranked third in terms of the number of transactions at 3,059, they were worth significantly more at Dhs 6.24bn.
In the building market, Al Yafra 2 attracted the most transactions, with 1,563 sales worth Dhs 3.28bn. This was followed by Al Hebeya 3, with 1,360 transactions worth Dhs 3.95bn and Al Yafra 3 with 926 transactions worth Dhs 1.71bn.
For mortgages Al Barsha 1 ranked most popular for land with 387 deals worth Dhs 415m, Dubai Marina was first for units with 927 transactions worth Dhs 1.78bn and Al Thunaya 4 was first for buildings worth 294 transactions worth Dhs 526m.