Dubai real estate transactions see an uptick

dubai - Sector bucks traditional summer lull to generate Dh158 billion worth of deals in first eight months

A pick-up in real estate transactions has generated Dh158.541 billion in value over the first eight months, underscoring a positive correction and a rebounding market, the Dubai Land Department (DLD) said on Sunday.

Sultan Butti bin Merjen, director-general of DLD, said real estate transactions have demonstrated a strong momentum since the beginning of this year with growth increasing month by month, signifying that "a positive correction in the domestic market is already well under way."

Bin Merjen said the uptick comes despite the usual state of market tranquility expected in the summer months, and there is also a marked improvement in activity in comparison with the same period last year.

The transactions report revealed that June, July and August were very active, with more than 15,493 transactions comprising a combined value of Dh60.5 billion. Over the first eight months, Dubai witnessed real estate deals valued at Dh158.541 billion, achieved through 38,838 sales, mortgages and other transactions.

The DLD report reveals that property sales contributed 46 per cent of the total, with more than 28,077 transactions worth a combined value of Dh71 billion, while mortgages came in second totalling 8,482 transactions with a collective value of Dh66 billion, accounting for almost 42 per cent.  Other transactions, accounting for 13 per cent of the total, generated Dh20.5 billion through 2,279 deals.

The report said land transactions generated Dh115 billion from a total of 10,054 deals while mortgages related to land transactions recorded Dh58.5 billion from 3,128 deals.

Seeh Shuaib 1, Shaikh Mohammed Bin Rashed Gardens, Hebiya 3, Al Yafra 3 and Al Yafra 5 were the top five areas in terms of land sales. In land mortgage, Thunaya 5, Hebiya 3, Wadi Al Safa 6, Wadi Al Safa 5 and Al Thunaya 4 were the top areas.

Business Bay came first for total unit sales, followed by Dubai Marina, Burj Khalifa, Jebel Ali and Warsan 1. In unit mortgages, Dubai Marina came in first, followed by Al Thunaya 5, Business Bay, Burj Khalifa and Muaisem 1. In apartments, Shaikh Mohammed Bin Rashed Gardens achieved the most number of transactions, while Thunaya 4 topped the list for building mortgages.

"There are a lot of positive signs contained within this report, which collectively demonstrate how the Dubai market is drawing great strength from a number of big infrastructure projects announced by the government," said bin Mejren.

He said the most important contributing factor to these robust figures remains the preparations by the Dubai leadership, in partnership with leading developers, to deliver a number of mega-projects which are laying the groundwork for a significant global event.

- issacjohn@khaleejtimes.com