Dubai Real Estate up 30%, nears $30 billion YTD

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Latest figures released by Dubai’s Land Department shows that Dubai Real Estate transactions are up 30% closing on $30 billion in H1 2013.

Dubai downtown district
Dubai downtown district. Dubai Real Estate

According to figures recently released by the Government of Dubai Land Department, the total value of real estate transactions in Dubai for the first half of 2013 reached Dhs108bn ($29.42bn) from a total of 30,469 transactions, which is an increase of 30 percent over the same period last year.

Contributing to the remarkable figures are sales transactions in the past six months, that have recorded a 49 percent growth amounting to 22,748 for a total value of Dhs52.8bn. Mortgages accounted for Dhs51.3bn representing a 47 percent growth with 6,050 transactions, followed by Dhs4.3bn for 1,671 other transactions representing 4 percent of the total within the same period.

Sultan Bin Mejren; “The high percentage of growth reflects ongoing real estate developments in the emirate that continue to attract local and international investors to Dubai.” — Sultan Bin Mejren, Director General of Dubai Land Department

Elaborating further, Bin Mejren highlighted that the real estate market in Dubai continues to provide an ideal environment for investment as investors have the opportunity to capitalize on price corrections witnessed in the market over the past two years. He said the price index has shown an upward trend over the past few months as a result of increasing demand to purchase land, villas and apartments for distinguished projects in Dubai.

He also predicts that as the market recovery continues to unfold in the upcoming period – which has been backed by the increase in commercial and residential rent prices, investors will be encouraged to increase their spending in Dubai.

In addition to the positive figures already quoted, the total number of land transactions for the same period reached Dhs75bn – with over 7,277 transaction made, representing the highest percentage of growth with 69 percent from total transactions. In terms of land transactions, there was Dhs27.1bn for 4,485 sales transactions, Dhs45.4bn for 2,408 mortgage transactions and Dhs2.5bn for 384 other transactions.

The total value of unit transactions made equaled Dhs28.8bn during the first half, with total transactions reaching 21,357, distributed by Dhs23.2bn for 17,327 sales transactions, Dhs4.7bn for 3,135 mortgage transactions and Dhs849m for 895 other transactions.

As for buildings, a total value of Dhs4.6bn was reached through 1,835 transactions made in the first half, which included 936 sales transactions with a total value of Dhs2.4bn, 507 mortgage transactions valued at Dhs1.2bn and Dhs985m for 392 other transactions.

Al Thenaya Al Khamesa topped the region in terms of transactions made and their value, with Dhs3bn through 738 sales and mortgages reaching Dhs1bn with 318 transactions.

The Dubai Marina took the lead in terms of value and amount of sales on apartments, with Dhs6.6bn over 3,748 transactions.

As for buildings, Al Thenaya Al Rabe’a topped the region in terms of the number and value of transactions, both in terms of sales and foreclosures, which accounted for 432 sales worth Dhs842m, coupled with 183 mortgages worth Dhs50m.

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