Dubai property transactions cross Dh83bn

The total value of property transactions in Dubai crossed Dh 83 billion in the first nine months of the year with Burj Khalifa area topping the list of most traded areas in units terms, according to Dubai Land Department.

The total transactions from January to September stood at 27,452 with cash sales crossing Dh43 billion and mortgage sales touching Dh36.3 billion for all kinds of properties. In August, the department had reported property transactions reached Dh63 billion in the first half of 2012. In 2011, a total of 35,297 real estate transactions of Dh143 billion were reported as against Dh123 billion in 2010.

Wadi Al Safa 5 topped the list of traded areas in term of land transactions with 403 deals during the first nine months of 2012, while Burj Khalifa took the number one spot on the list of most traded areas in units terms with 3,305 sale transactions.

Sultan Butti Bin Mejrin, Director General, DLD, in a statement, revealed the price indication took an “upward” trend during the past few months due to the demand and purchase transactions of land, villas and apartments in certain projects in Dubai.

“The market offers multiple-choices and Dubai property sector showed high flexibility in dealing with investors’ requirements, most notably first time investors who seek to benefit from investment opportunities that emerged due to price correction witnessed by the market over the past two years.”

The lion's share of total transactions was dominated by sale with 20,925 transactions at the value of over Dh43 billion.

Cash sales over Dh43 billion accounted for 52 per cent of the total transactions, or 20,925 transactions, in the first nine months of the year. However, mortgage transaction saw an increase over the last year, accounting for 44 per cent of the total transactions or 5,042 transactions, worth Dh36.3 billion.

Mejrin revealed that 1,485 transactions were registered as usufruct rights (Musataha), donations and other types of property transactions at the value of Dh3.7 billion, representing four per cent of the total transactions.

Almost 65 per cent of transactions were on land sales and mortgages, while apartment sale and mortgage exceeded transactions on buildings and villas by 86 per cent.

The total number of land sale and mortgage reached 5,488 transactions at over Dh54 billion. There were 3,327 land sale transactions of various types worth over Dh 20.5 billion, while land mortgage transactions stood at 1,636 worth over Dh30.9 billion.

In September, Cluttons said price of apartments in Dubai have risen by nearly five per cent since the beginning of 2012 and the trend is likely to continue. It said apartments have increased in value an average 4.9 per cent in 2012, while rental values increased 6.8 percent.

Earlier this month, Knight Frank Prime Global Rental Index revealed that prime rents in Dubai rose by more than three per cent in the first half of 2012. Rental values jumped by 3.3 per cent between January and June and by the same amount over the past year. The index showed rents had gone up by two per cent in the second quarter of 2012, placing Dubai ninth in the index of 16 countries.

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