Real estate transactions in Dubai, UAE during the first half (H1) the year reached a value of Dh132 billion ($36 billion), achieved through 35,571 sales, mortgages and other transactions, according to figures released by Dubai Land Department (DLD).
DLD’s H1 2017 Transactions Report reveals that the market has achieved a high percentage of growth compared to the same period last year, with total value increasing by 16.8 per cent from a total of 7,320 transactions – an increase of 25.91 per cent compared to transactions for the first six months of 2016.
The report also confirms that the Dubai real estate market generated a total of 25,864 sales transactions worth over Dh63 billion and 7,893 mortgage transactions worth Dh60 billion, while 1,814 other types of transaction brought in Dh9 billion.
Providing an analysis of the value generated by different types of property, the report shows that the land category represented Dh91 billion from approximately 8,000 transactions while building sales accomplished 3,887 transactions with a total value of Dh10 billion and unit sales crossed the Dh31 billion mark from 24 transactions.
Sultan Butti bin Mejren – director general of DLD – said: “Our report for the first half of this year bears promising results for professionals in the real estate sector, as despite global economic pressures, Dubai has once again reaffirmed its leadership of regional markets and driven renewed growth in the region.”
Bin Mejren confirmed that the 26 per cent increase in transactions and the 17 per cent increase in value is an unrivaled success for the sector. The success demonstrates the wisdom of the economic policies set by the government – particularly those that have contributed to the protection of all parties and the preservation of real estate rights, as these have encouraged real estate investment and safeguarded the growth of a transparent, sustainable and secure real estate sector.
Bin Mejren added: “Establishing strong foundations for the sustainable growth of our real estate sector has been largely focused on preserving the rights of all investors and providing a secure environment where their transactions can take place in a transparent matter. This has allowed the sector to grow by increasing investor confidence and heightening the appeal of Dubai’s property market.”
The report provides further details about the total number of investments made in Dubai’s real estate market during the first half of 2017. 27,381 transactions were completed by 21,574 investors, generating a total investment value of Dh58 billion. The report also highlighted that 6,253 female investors completed 7,341 transactions worth Dh15 billion.
Emirati investors take the lead
Emirati investors ranked first for both number and value of transactions, completing 4,510 transactions worth Dh15 billion, followed by Saudi nationals in second place with a total of 1,936 transactions worth Dh4 billion. The total value generated by GCC investors increased by 16 per cent compared to the same period last year, with 7,665 transactions worth Dh21.7 billion.
Arab and foreign investors
When looking at the Arab investors, Egyptians and Jordanians took first and second places respectively. The total value of Arab investments reached Dh8 billion, representing a 25.5 per cent increase compared to the same period last year, generated by 4,654 Arab investors, a 40 per cent increase compared to the same period.
Among foreign investors, Indian, Pakistani, British, Chinese and Canadian nationals took the first five places, with 15,062 investors generating a total value of Dh28.6 billion. These figures represent a 35 per cent increase in investor numbers and a 34 per cent increase in value compared to the first six months of 2016.
Areas in high demand
The report also sheds light on the top ten areas in Dubai for both number and value of transactions. Dubai Marina took first place with 2,529 transactions, followed by Business Bay with 2,146 transactions, Al Barsha South 4 with 2,001 transactions, Jebel Ali 1 with 1,931 transactions, and in fifth place Al Thaniya 5 with 1,501 transactions.
In terms of value, Palm Jumeirah topped the chart with transactions worth Dh9.5 billion, followed by Dh6.5 billion for Business Bay, Dh5.8 billion for both the Burj Khalifa and Dubai Marina areas, and Dh5.6 billion for Al Wasl area.