The official real estate regulatory body said property transactions worth more than AED 158 billion ($43 billion) were recorded in Dubai in the first eight months of 2016, spread over 38,800 sales, mortgages and other transactions.
Even in the summer months of June July and August, traditionally considered a slow time for the realty market, a total of 15,493 transactions having an aggregate value of AED 60.5 billion took place, yet again quashing opinions of a market slowdown.
DLD Director General Sultan Butti Bin Merjen said the figures proved Dubai’s importance as a profitable hub for parking money. “Real estate transactions in Dubai have demonstrated strong momentum since the beginning of this year, with growth increasing month by month – activity which substantiates that a positive correction in the domestic market is already well under way,” he said.
“This comes despite the usual state of market tranquility expected in the summer months, and there is a marked improvement in activity in comparison with the same period last year, which is reflected in this report’s key data and figures.”
Transactions relating to property sales contributed almost half (46 percent) of total transactions, made up of more than 28,077 deals having a combined value of AED 71 billion. Mortgages were next with of 8,482 transactions that accounted for AED 66 billion of the grand total. Other transactions reached a value of AED 20.5 billion.
There were a total of 10,054 land transactions recorded in the January to August period, amounting to AED 115 billion in spending, while 3,128 mortgage transactions contributed AED 58.5 billion. Sales transactions attained AED 38 billion from a total of 6,341 transactions, with other transactions accounted for AED 18 billion, the DLD report added.
The Seeh Shuaib 1, Sheikh Mohammed Bin Rashed Gardens, Hebiya 3, Al Yafra 3, and Al Yafra 5 were the top five areas of Dubai in terms of land sales transactions. The top five areas for land mortgage transactions were Thunaya 5, Hebiya 3, Wadi Al Safa 6, Wadi Al Safa 5 and Al Thunaya 4 areas.
The favorite localities for unit buyers were Business Bay, followed by Dubai Marina, Burj Khalifa, Jabal Ali and Warsan 1. Dubai Marina was top for unit mortgages, followed by Al Thunaya 5, Business Bay, Burj Khalifa and Muaisem 1, DLD revealed.
Sheikh Mohammed Bin Rashed Gardens saw the most buildings sales transactions, while Thunaya 4 topped the list for building mortgages.
“There are a lot of positive signs…which collectively demonstrate how the Dubai market is drawing great strength from a number of big infrastructure projects announced by the government,” Bin Mejren said. “The most important contributing factor to these robust figures remains the preparations by the Dubai leadership, in partnership with leading developers, to deliver a number of mega-projects which are laying the groundwork for a significant global event, which is the largest of its kind in the world,” he added.
With four months yet to go and the recently concluded Cityscape Global becoming a launch pad for several attractive projects, we expect a greater number of investors to turn up for shopping in Dubai’s real estate market. Stay tuned to our blog to know about how the market moves ahead in the coming months.