Dubai’s real estate market transactions generate AED 12 billion in 15 days
According to the latest report issued by Dubai Land Department (DLD), Dubai’s real estate market has experienced a strong start to the year, generating transactions worth up to AED 12 billion during the first 15 days of January 2017.
His Excellency Sultan Butti Bin Mejren, Director General of DLD, said: “The growth achieved in the fourth quarter of 2016 has paved the way for sustained growth at the outset of the New Year. By studying the index at the end of last year, DLD predicted that the market would enter a new phase of momentum and growth in 2017, as investor trust is building and certain areas of the city are attracting new interest from a variety of buyers.”
The fourth quarter of 2016 witnessed major transactions in many areas. Two land plots in Al Hebiya 4 were sold for AED 900 million, while another land plot in the same area was valued at AED 750 million. Buildings also recorded high transaction numbers during this period; in Dubai Marina, two buildings were sold for a total of AED 17 million, while a building in Al Thunaya 4 was sold for AED 7.4 million. In terms of units, Dubai Marina recorded the highest value transaction of AED 29.7 million, while two units in Al Thunaya 4 were valued at up to AED 28.3 million each.
During the first 15 days of 2017, land plots recorded 520 transactions worth AED 7.511 billion, while land sales claimed the lion’s share in terms of volume, generating 306 transactions worth over AED 3 billion. Mortgages excelled in terms of value, after reporting 190 transactions worth AED 4 billion.
DLD’s report confirms that building transactions totaled AED 682 million. Segmenting building sales and mortgages, building sales recorded 287 transactions worth AED 532 million, while building mortgages performed 74 transactions worth AED 127 million.
Individual unit sales and mortgages also saw significant activity, generating over AED 2.8 billion. This was split between 1,616 sales transactions worth AED 2 billion, and 338 mortgage transactions worth AED 453 million.
The value of transactions across the three categories – land, buildings and individual units – approaches AED 12 billion, achieved via 2,210 sales, 602 mortgages, and the remainder from other transaction types.
Top 5 Areas
DLD’s report identifies Dubai’s top five sales areas, revealing that the Al Satwa area benefited from a high level of interest for land sales, with 13 transactions worth AED 271 million. As for buildings, Wadi Al Safa 3 proved the most popular area, securing 74 transactions worth AED 129 million. Meanwhile the Burj Khalifa area has been highly attractive for individual unit sales, recording 156 transactions worth AED 483 million.
Bin Mejren commented: “DLD’s report reveals that there is high demand across various areas of the emirate. This is thanks to the variety of properties presented by senior developers, who are eager to align themselves with the government’s plans to meet investment needs, and ready the city to receive Expo 2020.”
The largest investment transaction recorded during the last two weeks was for a piece of land in the Zabeel 2 area, which was purchased for over AED 584 million. Following closely behind were two pieces of land in the Al Markaz Al Tujari 2, which were sold for AED 435 million, and an AED 114 million piece of land in Jebel Ali.
Turning to buildings, Jebel Ali has topped the scoreboard after selling a building for AED 5.2 million. It was followed by AL Quoz, with a building sale worth AED 4.6 million, and Nad Al Shiba 1, with a building sale worth AED 4.3 million.
In terms of individual units, the Burj Khalifa area maintained its leadership, selling one unit for over AED 18 million, and another for AED 12 million. Palm Jumeirah followed after selling a unit at AED 10.5 million.