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MOMENTUM ‘TO CONTINUE’

Bin Mejren: The real estate market has experienced a strong
start to the year and will continue on its upward trend.

Dubai’s property deals top $3.2bn in 15 days of 2017

DUBAI, January 19, 2017

Dubai’s real estate market has started the new year with a bang, generating Dh12 billion ($3.26 billion) transactions in just 15 days, said a report from Dubai Land Department (DLD).

The land plots recorded 520 transactions worth Dh7.511 billion, while land sales claimed the lion’s share in terms of volume, generating 306 transactions worth over Dh3 billion for the fortnight, stated the report.

Mortgages excelled in terms of value, after reporting 190 transactions worth Dh4 billion, it added.

With such a strong show in the very beginning of the year, the emirate's property sector is poised to continue on its upward trend in 2017, stated a senior DLD official.

"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," remarked Sultan Butti Bin Mejren, the director general of DLD.

According to the land department, the fourth quarter of 2016 witnessed major transactions in many areas.

Two land plots in Al Hebiya 4 were sold for Dh900 million, while another land plot in the same area was valued at Dh750 million. Buildings also recorded high transaction numbers during this period; in Dubai Marina, two buildings were sold for a total of Dh17 million, while a building in Al Thunaya 4 was sold for Dh7.4 million, it stated.

In terms of units, Dubai Marina recorded the highest value transaction of Dh29.7 million, while two units in Al Thunaya 4 were valued at up to Dh28.3 million each.

DLD’s report confirms that building transactions totalled Dh682 million. Segmenting building sales and mortgages, building sales recorded 287 transactions worth Dh532 million, while building mortgages performed 74 transactions worth Dh127 million.

Individual unit sales and mortgages also saw significant activity, generating over Dh2.8 billion. This was split between 1,616 sales transactions worth Dh2 billion, and 338 mortgage transactions worth Dh453 million, said the DLD report.  

The value of transactions across the three categories – land, buildings and individual units – approaches Dh12 billion, achieved via 2,210 sales, 602 mortgages, and the remainder from other transaction types, it added.

According to DLD, the top sales areas in Dubai were:

*Satwa - This was most popular area for land sales, generating 13 transactions worth Dh271 million;
*Wadi Al Safa 3 - For buildings, this proved to be the most popular area, securing 74 transactions worth Dh129 million;
*Burj Khalifa - This area was highly attractive for individual unit sales, recording 156 transactions worth Dh483 million.

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 Dh584 million, said the DLD report.

Following closely behind were two pieces of land in the Al Markaz Al Tujari 2, which were sold for Dh435 million, and an Dh114 million piece of land in Jebel Ali, it added.

Bin Mejren said: "This shows that there is high demand across various areas of the emirate. It is mainly 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."

Turning to buildings, Jebel Ali has topped the scoreboard after selling a building for Dh5.2 million. It was followed by Al Quoz, with a building sale worth Dh4.6 million, and Nad Al Shiba 1,  with a building sale worth Dh4.3 million.

In terms of individual units, the Burj Khalifa area maintained its leadership, selling one unit for over Dh18 million, and another for Dh12 million. Palm Jumeirah followed after selling a unit at Dh10.5 million.-TradeArabia News Service




Tags: Dubai real estate | Dubai Land Department |

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