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July 30, 2017 | 13:30 | Dubai
Dubai Land Department (DLD) has released its H1 2017 Transactions Report up until 30th June, through the Real Estate Research and Studies Department, announcing that total real estate transactions for this period reached a value of AED 132 billion, achieved through 35,571 sales, mortgages and other transactions.
The report reveals that the market has achieved a high percentage of growth compared to the same period last year, with total value increasing by 16.8% from a total of 7,320 transactions – an increase of 25.91% compared to transactions for the first six months of 2016.
The report also confirms that the Dubai real estate market generated a total of 25,864 sales transactions worth over AED 63 billion and 7,893 mortgage transactions worth AED 60 billion, while 1,814 other types of transaction brought in AED 9 billion.
Providing an analysis of the value generated by different types of property, the report shows that the land category represented AED 91 billion from approximately 8,000 transactions, while building sales accomplished 3,887 transactions with a total value of AED 10 billion and unit sales crossed the AED 31 billion mark from 24 transactions.
Bin Mejren: Good news for the real estate sector
Commenting on the results, His Excellency Sultan Butti bin Mejren – Director General of DLD – said: “Our report for the first half of this year bears promising results for professionals in the real estate sector, as despite global economic pressures, Dubai has once again reaffirmed its leadership of regional markets and driven renewed growth in the region.”
Bin Mejren confirmed that the 26% increase in transactions and the 17% increase in value is an unrivalled success for the sector. The success demonstrates the wisdom of the economic policies set by the government – particularly those that have contributed to the protection of all parties and the preservation of real estate rights, as these have encouraged real estate investment and safeguarded the growth of a transparent, sustainable and secure real estate sector.
Bin Mejren added: “Establishing strong foundations for the sustainable growth of our real estate sector has been largely focused on preserving the rights of all investors and providing a secure environment where their transactions can take place in a transparent matter. This has allowed the sector to grow by increasing investor confidence and heightening the appeal of Dubai’s property market.”
The report provides further details about the total number of investments made in Dubai’s real estate market during the first half of 2017. 27,381 transactions were completed by 21,574 investors, generating a total investment value of AED 58 billion. The report also highlighted that 6,253 female investors completed 7,341 transactions worth AED 15 billion.
Emirati investors take the lead
Emirati investors ranked first for both number and value of transactions, completing 4,510 transactions worth AED 15 billion, followed by Saudi nationals in second place with a total of 1,936 transactions worth AED 4 billion. The total value generated by GCC investors increased by 16% compared to the same period last year, with 7,665 transactions worth AED 21.7 billion.
Arab and foreign investors
When looking at the Arab investors, Egyptians and Jordanians took first and second places respectively. The total value of Arab investments reached AED 8 billion, representing a 25.5% increase compared to the same period last year, generated by 4,654 Arab investors, a 40% increase compared to the same period.
Among foreign investors, Indian, Pakistani, British, Chinese and Canadian nationals took the first five places, with 15,062 investors generating a total value of AED 28.6 billion. These figures represent a 35% increase in investor numbers and a 34% increase in value compared to the first six months of 2016.
Areas in High Demand:
The report also sheds light on the top ten areas in Dubai for both number and value of transactions. Dubai Marina took first place with 2,529 transactions, followed by Business Bay with 2,146 transactions, Al Barsha South 4 with 2,001 transactions, Jebel Ali 1 with 1,931 transactions, and in fifth place Al Thaniya 5 with 1,501 transactions.
In terms of value, Palm Jumeirah topped the chart with transactions worth AED 9.5 billion, followed by AED 6.5 billion for Business Bay, AED 5.8 billion for both the Burj Khalifa and Dubai Marina areas, and AED 5.6 billion for Al Wasl area.