Dubai Records Real Estate Deals Worth Dhs113bn In H1 2014

Real estate deal value in Dubai fell to Dhs52 billion during the second quarter of this year from Dhs61 billion in the first quarter of 2014, official figures reveal.

Dubai recorded real estate transactions worth Dhs113 billion during the first half of this year, according to Dubai Land Department (DLD).

However, the value of transactions fell 14.7 per cent to Dhs52 billion during the second quarter of this year from Dhs61 billion in the first quarter of this year.

Sales accounted for 54 per cent of total transactions during the first half of 2014 with 22,096 deals that were worth Dhs61.5 billion, DLD said.

Sales relating to land transactions accounted for the lion’s share of real estate deals in the first half of this year as the emirate recorded 5,516 deals worth Dhs35 billion. Meanwhile, sales relating to units totalled Dhs24.7 billion and building transactions amounted to Dhs1.8 billion.

Mortgages constituted around 42 per cent of DLD’s dealings in the first six months this year with a total of 6,922 mortgage transactions worth Dhs47.3 billion.

The total number of transactions during the first half of this year amounted to 30,380, the report said.

“Dubai’s real estate market has become the focus of attention for an increasing number of investors from around the world,” said Sultan Butti Bin Merjen, director general, DLD.

“Added to this optimism is the strengthening solvency of many major companies in the market. The overall result is that the real estate market in Dubai is able to regenerate and offer a variety of products to attract investors.

“We believe that Dubai can sustain this level of attraction and build on the momentum that is developing from the increased demand.”

Areas such as Al Hibiya 3, Al Barsha and Al Thenaya al Khameas were the most attractive areas for land sales, the DLD said.

Dubai Marina was the most popular area for apartment sales, with the value of transactions amounting to Dhs5.87 billion for 2,576 deals that were conducted.

“The growth in the volume of property investments is down to the wise economic policy pursued by the Government of Dubai over the past months and years,” said Bin Mejren.

“This policy has included the launch of mega projects such as the recently announced World Mall, which have been designed to keep Dubai’s real estate market ahead of the global competition. These projects have been launched alongside initiatives that encourage investment and new laws and legislation that ensure a healthy pace of market growth.

“All indications confirm that the market is being buoyed by momentum that is sustaining demand.”

Dubai’s property prices, which saw a strong rebound in 2013 following a bust in late 2008, have stabilised since the start of this year.

Quarter-to-quarter growth in sales prices has slowed but the prices have surged 31 per cent year-on-year during the first half of this year, according to the latest CBRE report.