Dubai land transactions jump 27pc

There has been a hefty 27 per cent jump in transactions with the Dubai Lands Department, with total value soaring to Dh5.61 billion this year from Dh4.4 billion previously, according to data obtained by Gulf News yesterday.

"The realty market in Dubai is thriving," said Sultan bin Butti Mejrin, assistant deputy director of the department. In 1998, there was a very sharp decline in land trade in Dubai, but one year later, the price of land and land transactions started rising gradually.

The number of land transactions this year is the highest since 1998. "We have cases of traders who buy a piece of land for Dh11 million and sell it the next day for Dh17 million, which is amazing," he said.

"The price of land in some areas has started going up, such as in areas near the projects in Jumeirah and Al Barsha. These projects which were announced by the Government of Dubai are the main reason for pushing up the price of land."

The low interest rates offered by banks is another important reason for traders investing in land. "The income from real estate is between 7 and 10 per cent, which is higher than the rates offered on bank deposits," he said.