Dubai realty posts robust growth
Dubai Cityscape as seen from Meydan Race course.
Dubai - Real estate transactions surge 22.5% to Dh267 billion in 2015.
By Abdul Basit
Published: Sat 9 Jan 2016, 11:00 PM
Last updated: Mon 11 Jan 2016, 9:05 AM
Dubai real estate market has reached a stage of wise maturity and it is expected to maintain sustainable growth for years to come, according to a top government official.
Dubai property market continued to attract more investors in 2015 compared to 2014 despite lower oil prices, global economic slowdown and political situation in the Middle East. Since the beginning of the 2015 there were reports that Dubai real estate market was witnessing slowdown because of low oil prices and other regional conflicts, but the Dubai Land Department (DLD) data showed that 2015 recorded a significant growth compared to the previous year.
The emirate's real estate transactions jumped by 22.5 per cent to Dh267 billion in 2015 compared to Dh218 billion in 2014, according to the data available at DLD website. Dubai real estate market witnessed Dh236 billion transactions in 2013 and Dh154 billion transactions in 2012, the data showed.
The second half of the year was better than the first half in terms of transactions and its values in the emirate. First six months of 2015 witnessed 23,000 transactions worth Dh129 billion compared to 40,719 transactions worth Dh138 billion during July to December.
"DLD experts' reports assured that the Dubai market has reached a stage of wise maturity and rational dealing with the requirements by the various sides in the real estate market," DLD director-general Sultan Butti bin Merjen said in a statement. "If we look at the moves that have been recorded over the past year details, we can see clearly the optimal policies followed by senior developers to diversify their products and put forward their proposals to acquire full confidence on the part of customers and investors," Bin Merjen said.
DLD report disclosed that the sales crossed the 48,000 transaction in 2015 with a total value of Dh130 billion, while mortgages crossed 12,000 with a total value of Dh117 billion.
"The market has become more innovative. and the developers were keen to boost the new projects with facilities that aim to satisfy the residents. Keeping this momentum for years, proves that the real estate market in Dubai is able to continue to attract investors from around the world, which means that it is still likely to maintain sustainable growth again for years to come," he said.
Sales and mortgages relating to land transactions recorded more than Dh194 billion from the total real estate figure for 2015, with the total of 16,751 transactions. The commercial lands (already built on) acquired the lion share in terms of value for the type of land with 40 per cent in total.
"Looking at the value of transactions by the buildings and units, we find that the transactions exceeded 46,968 transactions with a total value of Dh72 billion during 2015."
The "Al Yafra 2" area of Dubai was revealed to be the most attractive for investors, with the value of its transactions from sales of lands reaching Dh3.285 billion through 1,563 sale transaction.