Dubai Real Estate Transactions for First Half 2014 Top Dhs113 Billion
Dubai Land Department (DLD) has announced that the total amount of real estate transactions recorded in the emirate for the first six months of 2014 exceeded Dhs113 billion. A financial report issued by the Real Estate Research and Studies Department revealed that sales accounted for 54 per cent of the total transactions over this period, numbering 22,096 deals worth Dhs61.5 billion.
Mortgages comprised 42 per cent of DLD’s dealings over the same timeframe, with a total of 6,922 mortgage transactions worth Dhs47.3 billion being conducted. The number of other property transactions was recorded at 1,389 with a total value of more than Dhs4.6 billion. The Real Estate Research and Studies Department report found that the combined number of all transactions for Q 1 and Q2 was 30,380.
“The Dubai Real Estate market has become the focus of attention for an increasing number of investors from around the world. This interest can be attributed to several reasons, most importantly the renewed confidence in the Dubai market after the city’s winning bid to host World Expo 2020,” said HH 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,” he added.
Sales relating to land transactions accounted for the lion’s share of real estate transactions for the first half of 2014, with the Dhs35 billion figure representing 5,516 deals. Sales relating to units totalled Dhs24.7 billion for 15,997 transactions. Buildings transactions held the third place sales position with a figure of Dhs1.8 billion, with the combined total for all three categories being Dhs61.5 billion.
“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. 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,” added Bin Mejren.
“All indications confirm that the market is being buoyed by momentum that is sustaining demand. In this picture, the city will maintain its leadership and visibility in both the regional and global markets, particularly as it provides higher returns on investments,” concluded Bin Mejren.
An analysis of Dubai’s top investment areas over the first half of the year has revealed that Al Hibiya 3 occupied first position for land sales, with a total of 938 transactions worth Dhs3,09 billion. This district was followed by Al Barsha South 4, Al Thenaya Al Khamesa, Wadi Al Safa 5 and Jabal Ali 1. Dubai Marina took first place in apartment sales, with the value of transactions in this prime area equating to Dhs5,87 billion for 2,576 transactions. Following it were Business Bay, Al Thenaya Al Khamesa, Al Warsan 1 and Burj Khalifa. Al Thenaya Al Khamesa came in first for buildings transactions with a total of 236 deals worth Dhs580 million. The next most popular areas for buildings transactions were Al Barsha South 4, Wadi Al Safa 6, Dubai Investment Park 1 and Al Thunaya 3.
With regards to mortgages, Thunaya 5 occupied first place in land mortgages, recording 338 transactions worth Dhs1,70 billion. This area was followed by Al Barsha South 4, Al Barsha South 5, Al Barsha South 1, and Wadi Al Safa 5. Dubai Marina came top in all areas in units mortgages recording 751 transaction worth of Dhs1.36 billion, followed by Business Bay and Al Thunaya 5. Al Barsha South 4 came on top for buildings mortgages, with the area recording 74 transactions worth Dhs136 million.