Business | General

Dubai land transactions grow 21% to reach Dh63b in the first half of 2012

Land transactions in Dubai grew by 21 per cent to reach Dh63 billion in the first half of 2012, an indicator of the strong performance of the emirate’s real estate industry, the Dubai Land Department said on Monday

  • By Zaher Bitar, Staff Reporter
  • Published: 19:52 August 6, 2012
  • Gulf News

The Department of Economic Development building
  • Image Credit: Gulf News Archives
  • The Department of Economic Development building, which also houses the Dubai Land Department and the Real Estate Regulatory Agency (RERA).

Dubai: Land transactions in Dubai grew by 21 per cent to reach Dh63 billion in the first half of 2012, an indicator of the strong performance of the emirate’s real estate industry, the Dubai Land Department said on Monday.

Sales accounted for 49 per cent of the transactions while mortgage made up 47 per cent, a report issued by the department said.

The real estate market in Dubai has shown high levels of flexibility in meeting investor requirements and trends during the first half of 2012, specially the new investors looking to benefit from the market’s price correction in the past two years

Sultan Butti Bin Mejrin, Director General of the Dubai Land Department

Sultan Butti Bin Mejrin, Director General of the Dubai Land Department (LD) said: “The department’s transactions for the first half of 2012 reached 18,953, on an average of 133 transactions per day and 16 transactions per hour, including sales, mortgages, ijarah (online registration fee), mortgage portfolios, deferred sales and other transactions.”

Bin Mejrin said; “The 21 per cent growth is an important indicator to the strong performance of the market supported by the Government’s facilitation. This result will also enhance the trust among local, Arab and international investors.”

“The real estate market in Dubai has shown high levels of flexibility in meeting investor requirements and trends during the first half of 2012, specially the new investors looking to benefit from the market’s price correction in the past two years.”

Muhannad Al Wadiya, managing director of Harbor Real Estate, said that the real estate sector in Dubai is witnessing positive sentiment.

“Moreover, 90 per cent of the developers are back to the market, and in the next five years they will be completing their projects,” he said. He added that challenges remain, including confidence and access to liquidity, but rental returns were stable.

Bin Mejrin remarked that the demand for land, villas and flats in certain areas was high. That is why prices have jumped.”

“The market saw a state of stability and increased demand from investors in buying properties and grasp investment opportunities in the last two years.”

“This demonstrates the ability of Dubai to fully recover from the challenges of the international crisis and prove once again the strength of Dubai’s economy,” he said.

According to the Land Department figures, the heaviest investment was in plots through sales accounting for 14,652 transactions worth Dh30.8 billion.

While mortgages accounted for 3,363 transactions worth Dh29.6 billion representing 47 per cent of the total transactions.

Hamda Al Shamsi, Deputy Director of Land Department’s Real Estate Development Department, said: “The first half of this year witnessed the sale of 1,003 buildings and mortgage transactions worth Dh2.7 billion.

While 14,428 transactions were made on flats’ sale and mortgage transactions worth Dh18 billion.” .

“The value of transactions reflects the return of the real estate market to normal levels, the exit of speculators, the maturity of the real estate market and increased investor awareness,” Hamda said.

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