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17 July 2024

Dh236bn spent on Dubai real estate

By Parag Deulgaonkar

Total value of real estate transactions in Dubai rose by 53 per cent to Dh236 billion in 2013 compared to Dh154 billion in 2012, Dubai Land Department (DLD) data reveals.

Total number of transactions in 2013 reached 63,652 compared to 41,767, an increase of 52 per cent.

Land transactions (sales and mortgages) continued to rise with the value touching Dh166 billion compared to Dh111 billion in 2012.

Unit transactions (sales and mortgages of apartments and villas) were Dh62 billion, while the remaining four per cent of other activity was worth Dh8.7 billion.

Data of unit transactions in 2012 had put the value at nearly Dh81 billion.

No details were given on nationality of the buyers.

Sultan Butti Bin Merjen, Director General of DLD, in a statement, said: "The transaction figures for 2013 reveal a high level of optimism currently prevailing in the real estate market.

“These can be attributed to the new regulations and procedures issued during the past year, which have contributed to the strengthening of trust and confidence between the various categories of investor.

“We are anticipating a further rise in the growth index this year, boosted by Dubai’s winning bid to host World Expo 2020.”

Most attractive areas

Al Thenaya Al Khamesa  - which includes Jumeirah Lake Towers – is the most attractive for investors, with the value of its transactions (sales and mortgages) reaching Dh9 billion followed by Al Barsha South 5, Al Hibiya 3, Al Barsha South 4 and Wadi Al Safa 5.

Dubai Marina continued to hold to its first position for the second consecutive year in the apartment category, with the value of transactions (sales and mortgages) at Dh15.6 billion.

Al Thenaya Al Khamesa came second followed by Burj Khalifa, Al Warsan 1 and Business Bay.

With regards to buildings, developments in Al Thenaya Al Rabe’a topped with sales of nearly Dh2 billion.

Other areas were Wadi Al Safa 6, Al Barsha South 4, Al Thenayan Al Thalatha and Dubai Investments.

Prices set to rise

Property price rises in Dubai will continue to be much higher than rest of the world in 2014 though it will slow down compared to 2013, according to Knight Frank’s Prime Global Forecast report.

Liam Bailey, Global Head of Residential Research, states in the report that Dubai will see prices jump by 10 to 15 per cent in 2014 driven mostly by Expo 2020 development, buyer incentives and a relaxation of cooling measures.

But Mejren in an interview to Bloomberg said that prices will rise by 35 to 40 per cent in 2014.

Property prices were almost up over 20 per cent in 2013, the consultancy said.

Earlier this month, Samir Munshi, Managing Director, Orion Holdings, told Emirates 24|7 that land was becoming costlier and prices had jumped by 15 per cent post Expo 2020 announcement.