15/01/2017 09:35 AST
The total amount of real estate transactions recorded in Dubai, UAE last year exceeded Dh259 billion ($70.5 billion), according to the annual report released by Dubai Land Department’s (DLD).
The Emirate recorded a total of 60,595 real estate transactions in 2016, the report said. Over 41,776 sales transactions took place, representing a total value of Dh103 billion, while the 15,000 mortgage transactions were equivalent to a value of Dh128 billion.
Sultan Butti Bin Merjen, director general of DLD, said the findings in the report confirm that the real estate market in Dubai has reached a new phase of maturity and stability, and that it is moving towards sustainable growth.
Bin Mejren predicted that the real estate market in Dubai will gain further momentum in 2017, signalling an upward trend for sustained growth in the run-up to Expo 2020. The news was shared in his comment on the annual report, which was issued by Real Estate Research and Studies Department at DLD.
The DLD annual report which includes a detailed insight into Dubai’s real estate scene, the infrastructure of mega-projects, and preparations for Expo 2020—also reveals that the real estate market is expected to benefit from a new wave of activity and growth this year.
Developers have risen to meet the challenge of this new growth phase, with the launch of new projects valued at over 100 billion dirhams, as well as the completion of mega-projects and the development of new services to meet growing demands from a variety of real estate sectors.
New phase
In 2016, land sales and mortgage transactions represented a total value of Dh193 billion across 15,994 transactions. This breaks down to mortgages bringing in over Dh114 billion via 5,145 transactions, while sales secured over Dh55 billion from 9,892 transactions. In terms of value, commercial land (already built on) claimed the lion’s share, representing 30 percent of the total value secured by transactions in 2016.
Segmenting sales and mortgage transactions by buildings and units, DLD’s report finds that over 44,602 transactions took place, representing a total value of Dh66 billion. Building sales recorded 2,626 transactions worth Dh7 billion, while units performed 29,258 transactions worth Dh51 billion. In addition, the report records 1,391 building mortgage transactions worth Dh3.4 billion, and 8,000 unit mortgage transactions valued at Dh10.5 billion.
Real estate investors
Dubai’s real estate sector continued to attract a wealth of investors in 2016; DLD reports that the sum of real estate investment transactions for the year exceeded Dh91 billion from 55,928 investors. As has been the case in previous years, the leading investors were UAE nationals from across the GCC, Arabs, and foreigners, for their investment of nearly Dh22 billion from over 7,000 investors.
In 2016, citizens of the Gulf Cooperation Council (GCC) states contributed Dh35 billion from 12,768 investors of six nationalities, while 3,294 Saudi Arabian investors made transactions worth Dh8 billion.
Investors from Qatar and Kuwait approached Dh2 billion mark, from 1,006 and 770 investors respectively, followed by nationals from Oman (301 investors) and Bahrain (244 investors), who contributed up to Dh1 billion.
Arab investors
Arab investors from outside the GCC contributed over Dh12 billion to the real estate market last year, from 6,416 investors of 16 nationalities. DLD’s report reveals that among these, Egypt ranked highest in number of investors, with 1,364 investors making transactions worth over Dh2.4 billion. Other leaders in numbers of investors were Algeria, Iraq, Lebanon, Palestine, Sudan, Yemen, and other Arab countries, while citizens of Jordan ranked highest in terms of value, investing a total of Dh2.5 billion across 1,331 investors.
Indian success
2016 saw fo
Trade Arabia
Please wait...
