The total amount of real estate transactions in Dubai exceeded Dhs236 billion in 2013, according to a new report by the Dubai Land Department (DLD).
The emirate recorded land mortgages and sales worth Dhs166 million and Dhs62 billion of housing unit mortgages and sales in 2013.
The number of deals rose 53 per cent from 2012, reaching a total of 63,652, the report said.
Sales and mortgages relating to land transactions constituted the lion’s share of deals in 2013, representing 70 per cent of all the real estate transactions, the DLD said.
Housing unit transactions were second highest at around 26 per cent while the remaining activity, which was worth Dhs8.7 billion constituted four per cent.
Al Thenaya Al Khamesa, the area where Jumeirah Lakes Towers is located, was named Dubai’s most attractive area for investors, with the value of land deals reaching Dhs9 billion last year.
Al Barsha South 5, Al Hibya 3, Al Barsha South 4 and Wadi Al Safa were other popular areas that recorded the most land transactions, according to the DLD report.
Dubai Marina recorded the highest number of apartment sales and mortgages, with the value of deals reaching Dhs15.6 billion. Al Thaneya Al Khamesa, Burj Khalifa, Al Warsan 1 fourth and the Business Bay area were other locations that saw a rising number of apartment sales and mortgages.
“The transaction figures for 2013 reveal a high level of optimism currently prevailing in the real estate market,” said Sultan Butti Bin Merjen, director general of DLD.
“These can be attributed to the new regulations and procedures issued during the past year, which have contributed to the strengthening of trust and confidence between the various categories of investor.
“We are anticipating a further rise in the growth index this year, boosted by Dubai’s winning bid to host World Expo 2020.”
Dubai’s property sector has been on a rebound throughout 2013 following a bust in late 2008, which deflated real estate prices in the emirate.
However, Dubai’s house prices have surged close to 30 per cent over the past year, outperforming all the major global markets, and have triggered fears of another bust.
Dubai’s successful bid for Expo 2020 is also expected to boost the emirate’s real estate sector whilst leading to a rise in prices, according to a CBRE report.
The emirate’s regulatory authority has been proactive in looking to stabilise the market as it doubled the property transaction fee from two to four per cent last year. The land department was also instrumental in introducing a cap on mortgages for first time and second-time buyers.
Bin Mejren has also said that the DLD is looking to initiate further regulations to stabilise the market. In a recent interview with Bloomberg, he forecast the emirate’s property prices to be rise by 40 per cent this year.