Dubai Land Department: ‘Real estate transactions have become more mature and the market shows high flexibility’
The Dubai Land Department (DLD) has announced that it registered 26,645 transactions worth a total of Dhs101 billion in the Dubai real estate market since the beginning of 2014.
The government property organization added that Dubai real estate marked attracted a total of 16,743 investors. DLD Director General, HE Sultan Butti Bin Mejren anticipated the buoyant trend to continue as well.
“The strong performance in the real estate sector indicates a trend that we expect to be sustained over the next year and beyond. The number and value of real estate transactions since the beginning of the year to date indicate both that investors have become more aware and that the market has become rich with investment options,” said Bin Mejren.
Bin Mejren pointed out that the real estate market in Dubai is showing a high degree of flexibility in dealing with the requirements of investors, especially new stakeholders entering the market for the first time to seize opportunities that have emerged in the wake of the price correction witnessed in the market over the past two years. He commented that the growth in demand from investors is a result of an improvement in fundamental economic factors, rather than down to speculation.
The Director General referred to the application of the real estate registration fee of 4%, which he says helps block speculators who drive the market and contribute to a real estate bubble. He explained that Dubai has become a global player and therefore fees for providing services have to be on a par with the city’s growth and development.
He stressed that the government’s efforts in continuously developing the infrastructure and encouraging investment in the emirate has increased the value of real estate many fold in comparison with the values of 10 and 20 years ago.
He also stated that property owners in Dubai reap healthy returns that are unprecedented worldwide.
Bin Mejren added that the UAE ranks first globally in the ‘Ease of Doing Business’ report and that this is due to a lack of fees charged in general, in addition to the fees that are set by DLD being lower than 110 countries worldwide. He said that the city was home to one of the strongest real estate markets internationally.
Bin Mejren commented that the 4% fee applied in Dubai is still less than many fees imposed by other countries, for example: Britain between 4, 7 and 15%, Malaysia between 5-10%, France 6%, Japan 5.8%, India 7.3%, Pakistan 7.8% and the countries of the Middle East and North Africa 6.9%.