Dubai property sector keeps growth momentum

Dubai property sector keeps growth momentum

Dubai - Dubai Land Dept records 34,000 real estate transactions worth Dh186b in Jan-Sept 2015.



By Muzaffar Rizvi

Published: Sat 31 Oct 2015, 11:00 PM

Last updated: Mon 2 Nov 2015, 8:02 AM

Dubai property sector sustained growth momentum in 2015 as value of real estate transactions climbed 20 per cent during January-September period this year, according to the latest data.
Dubai Land Department (DLD) on Saturday said it recorded 33,907 real estate transactions worth Dh186.34 billion during first nine months of this year. This is in contrast to 39,455 transactions worth Dh155 billion recorded in the similar period last year, reflecting a 14 per cent year-on-year decrease in real estate deals.
The DLD data indicates that sales transactions worth Dh78 billion were recorded during January-September 2015 period. The mortgage deals accounted for Dh94 billion and other transactions hit Dh14 billion, the DLD said without giving comparative figures.
"The report confirms beyond any doubt that the real estate sector in Dubai is heading towards sustainable growth. This can be ascertained from the continual increases from one quarter to the next, which have been a feature of the market over the last two years," said Sultan Butti bin Mejren, director-general of DLD.
The DLD report noted 22,389 sales transaction comprising 42 per cent from the total land deals, as mortgages acquired 50 per cent and other transactions accounted for only eight per cent.
The commercial lands acquired the lion share in terms of value for the type of land with Dh63.78 billion, followed by empty lands for other purposes with a total amount of Dh23 billion.
The empty lands for commercial purposes came on third place with Dh22.6 billion while empty lands for residential purposes acquired almost Dh20 billion deals. Other lands with residential buildings accounted for Dh17.5 billion, while lands for other purposes acquired Dh6.2 billion transactions.
"This report shows once again sustainable growth enjoyed by the real estate sector in Dubai, especially since the increase in supply is in harmony with the increase in demand for various real estate activities categories, including residential units, office space allocated for industrial purposes and installations, as well as growth in the development of hotel projects of various degrees," Bin Mejren said.
"Such numbers reassures investors, and maintain market momentum and its ability to pump new investments, specially with projects that help Dubai to prepare for Expo 2020. As the market is now is enjoying sustainable growth, we will see rewarding increases in the sales and rental prices, which means ensuring the satisfaction of all the players in the market," he added.
The report said the buildings and units transactions exceeded 21,686 transactions with a total value of Dh32 billion during first nine months of this year.
- muzzaffarrizvi@khaleejtimes.com


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