Land deals surge 30%

The data released by the Government of Dubai Land Department (LD) on Wednesday revealed that the second quarter of the year witnessed much better property buying activity over the first quarter.

The emirate recorded 35 transactions per hour in the second quarter, compared to 32 transactions per hour in the first quarter of the year. Around 75 per cent of the total property transactions were booked in cash, according to the data.

In terms of value the June quarter jumped by more than 45 per cent to Dh64 billion while transactions increased by 14 per cent to 16,209 over 14,260 of March quarter.

“The high percentage of growth reflects ongoing real estate developments in the emirate that continue to attract local and international investors to Dubai,” said Sultan bin Mejren, director-general of LD.

Sales transactions in the past six months have reached 22,748 for a total value of Dh52.8 billion representing a 49 per cent growth, while mortgages accounted for Dh51.3 billion representing a 47 per cent growth with 6,050 transactions, followed by Dh4.3 billion for 1,671 other transactions representing 4 per cent of the total in the past six months.

Investors continue to capitalise on opportunities that have risen as a result of price corrections witnessed in the market over the past two years, he said, adding that the price index has shown an upward trend over the past few months as a result of increasing demand to purchase land, villas and apartments for distinguished projects in Dubai.

He also predicts that as market recovery continues to unfold in the upcoming period, which has been backed by the increase in commercial and residential rent prices, investors will be encouraged to increase their spending in Dubai.

Figures released also show that the total number of land transactions for the same period reached Dh75 billion — with over 7,277 transaction made, representing the highest percentage of growth with 69 per cent from total transactions. In terms of land transactions, there was Dh27.1 billion for 4,485 sales transactions, Dh45.4 billion for 2,408 mortgage transactions and Dh2.5 billion for 384 other transactions.

The total value of unit transactions made equaled Dh28.8 billion during the first half, with total transactions reaching 21,357, distributed by Dh23.2 billion for 17,327 sales transactions, Dh4.7 billion for 3,135 mortgage transactions and Dh849 million for 895 other transactions.

As for buildings, a total value of Dh4.6 billion was reached through 1,835 transactions made in the first half, which included 936 sales transactions with a total value of Dh2.4 billion, 507 mortgage transactions valued at Dh1.2 billion and Dh985 million for 392 other transactions.

— abdulbasit@khaleejtimes.com