Mortgages overtake cash deals as Dubai property sales hit Dh186bn
Market on sustainable growth track: DLD
By 24/7 news
Published Sunday, November 01, 2015
The total real estate transactions in Dubai reached Dh186 billion in the first nine months of 2015, with the Dubai Land Department (DLD) asserting “the market was heading towards a sustainable growth”.
The total number of transactions during the period were 33,907 with sales accounting for Dh78bn, while mortgages reaching Dh94bn. The remaining Dh14bn were part of other sale transactions such as gifts, endowment, etc.
“The report confirms beyond any doubt that the real estate sector in Dubai is heading towards sustainable growth. This can be ascertained from the continual increases from one quarter to the next, which have been a feature of the market over the last two years,” Sultan Butti Bin Mejren Director-General, DLD, said in a statement.
“Investors and developers can now have realistic expectations and can formulate effective strategies in the short- and medium-term to meet the needs of the sector. The reliable data in the report is far removed from fallacious information about the market that certain parties are trying to broadcast in order to achieve personal gain.”
International and local property consultants have forecast previously that property prices will fall by 5 to 10 per cent in Dubai, with the market facing oversupply in the coming years.
Bin Mejren further stated that supply is in harmony with the increase in demand for various real estate activities categories, including residential, office, industrial and hotel projects.
“Such numbers reassures investors, maintains market momentum and its ability to pump new investments, especially with projects that help Dubai to prepare for Expo 2020. As the market is now enjoying sustainable growth, we will see rewarding increases in the sales and rental prices, which means ensuring the satisfaction of all the players in the market,” Bin Mejren added.
According to DLD, there were 22,389 land sale transaction – 42 per cent in cash, 50 per cent in mortgages and eight per cent other transactions.
Commercial lands reported transactions worth Dh63.78bn, followed by vacant plots for other purposes valued at Dh23bn. In third place came vacant lands for commercial purposes with Dh22.6bn, while vacant lands for residential purposes acquired almost Dh20bn. Other lands with residential buildings accounted Dh17.5bn, while lands for other purposes were valued at Dh6.2bn.
Buildings and units transactions exceeded 21,686 transactions with a total value of Dh32bn. Lands transactions acquired Dh153bn through 12,221 transactions, while built on land for commercial services were 42 per cent from the total.