Property

Value of Dubai property deals up by 15% in first half of 2015

Real-estate transactions worth $35.1bn mark growth on first six months of last year, Dubai Land Department figures show

PHOTO: A total of 23,000 real-estate transactions were recorded in the first half of the year, the Dubai Land Department said. Credit: Shutterstock

The total value of real estate transactions recorded in Dubai in the first half of the year amounted to $35.1 billion (AED129bn), according to statistics from the Dubai Land Department (DLD).

There were a total of 23,000 transactions recorded in the period, DLD announced. Sales transactions accounted for a total value of $14.4 billion (41%), while mortgages made up more than $17.7 billion (50.4%), leaving all remaining operations with the total value of $2.72 billion.

The value of transactions increased by roughly 15% from the same period last year, when the DLD recorded $30.8 billion worth of transactions in H1. This year, mortgages made up over half the total transactions conducted in the first six months, as opposed to the same period in 2014, when cash deals accounted for the lion’s share at 54% of the total.

“The report confirms beyond any doubt that the real estate sector in Dubai is heading towards sustainable growth. This can be ascertained from the continual increases from one quarter to the next, which have been a feature of the market over the last two years,” said Sultan Butti Bin Mejren, Director General of the DLD.

In light of the findings, developers and investors can formulate short and medium-term strategies to meet the needs of the emirate’s real estate sector, Bin Mejren said, noting the report could also put to rest misleading information being spread about Dubai’s property market.

“The reliable data in the report is far removed from fallacious information about the market that certain parties are trying to broadcast in order to achieve personal gain,” he said.

The DLD report revealed percentages of transactions for each land sector as well as for different kinds of property. Commercial land transactions accounted for nearly half of all the transactions for various types of land, at 47% of the total. Among transactions for different kinds of property, buildings and units transactions amounted to a total value of $5.4 billion in the first six months of the year.

The Al Yafra 2 area was found to be with most attractive for transactions in terms of land value sales. Al Barsha South 1, on the other hand, was most popular for mortgages.

For unit sales, the Business Bay area came in first with the value of its transactions reaching $680.6 million, while Dubai Marina led the way for mortgages, with transactions value amounting to $272.2 million.

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