AED 31.5 billion sale and AED 28 billion mortgage transactions in first quarter
Level of transactions 38 per cent higher than same period last year
Over 15,000 transactions recorded since January 1, 2014
Bin Merjen: Market growth is attributed to the launching of many stimulating economic projects and initiatives in Dubai
Dubai Land Department (DLD) has announced that the total amount of real estate transactions recorded in the emirate for the first quarter of this year exceeded AED 61 billion – an increase of 38 per cent over the same period last year’s AED 44 billion worth of property deals. The announcement was made following the issuing of a financial report from the organisation’s Real Estate Sector Development Department.
Commenting on the impressive results, Sultan Butti Bin Merjen, Director General of DLD, said; "The results of the first quarter 2014 reflect the renewed investor confidence in Dubai and specifically, in the city’s real estate sector, which is considered an integral component of the national economy. We expect the next three quarters to be similarly as active, especially as this period follows the launch of a number of stimulating economic projects in Dubai and the disclosure of some of the preparations for the city’s hosting of Expo 2020.”
DLD’s report revealed that a total of 15,694 real estate transactions were recorded in the first quarter of 2014 - an increase in activity of 11 per cent over the same period last year. The statistics showed that there were 11,567 sales activities worth a total of AED 31.5 billion and 3,482 mortgage transactions, worth over AED 28 billion. Other categories accounted for AED 1.7 billion from 636 transactions, making the total value of transactions in all categories more than AED 61 billion.
Sales and mortgages relating to land transactions accounted for the lion's share of the total figure, with land mortgages valued at AED 24.1 billion and land sales AED 17.4 billion. Sales and mortgages of residential units were worth AED 13 billion and AED 3.1 billion respectively. Buildings transactions came in at third place for activity, with sales registering AED 946 million and mortgages AED 810 million. In total there was an 81 percent increase in the number of investors compared with the number from the first quarter of 2013.
“The figures issued by DLD’s Real Estate Sector Development Department confirm the increased activity in the city’s real estate sector. They prove that Dubai is attracting property ownership, whether for long-term investment or for personal housing needs. We anticipate this heightening of activity to continue over the coming years, with property buyers achieving good returns on their real estate investments. We believe that these returns will be significantly greater than those from other economic sectors,” added Bin Mejren.
DLD’s report revealed that Al Hibiya 3, Dubai Marina and Al Thenaya Al Rabe’a were the most attractive areas for selling land, buildings and residential units. Al Thenaya Al Khamesa was in top place for land mortgages and Thenaya Al Rabe’a placed highest for building mortgages.