Dubai Land Department’s (DLD) Transactions Report, issued by its Real Estate Research and Studies Department, has announced that the total amount of real estate transactions recorded in the Emirate in the first eight months of the current year reached a total of AED 158.541 billion, achieved through 38,838 sales, mortgages and other transactions.
Commenting on the results, HE Sultan Butti Bin Merjen, Director General of DLD, said: “Real estate transactions in Dubai have demonstrated strong momentum since the beginning of this year, with growth increasing month by month - activity which substantiates that a positive correction in the domestic market is already well underway. This comes despite the usual state of market tranquillity expected in the summer months, and there is a marked improvement in activity in comparison with the same period last year, which is reflected in this report’s key data and figures.”
The report revealed that the three summer months (June, July and August 2016) were very active, with more than 15,493 transactions comprising of a total combined value of AED 60.5 billion.
The report reveals that property sales contributed towards 46% of the total, with more than 28,077 transactions comprising a total combined value of AED 71 billion, whilst mortgages came in second crossing a threshold of 8,482 transactions, which formed a total collective value of AED 66 billion, also acquiring almost 42%. Other transactions reached AED 20.5 billion in the form of 2,279 transactions, achieving almost 13% of the whole amount.
The report reveals that deals relating to land transactions attained over AED 115 billion for the current period, from a total of 10,054 transactions. Mortgages relating to land transactions recorded AED 58.5 billion, from a total of 3,128 transactions, whilst sales transactions attained AED 38 billion from a total of 6,341 transactions, with other transactions gaining AED 18 billion.
When considering the total value of transactions by buildings and units, we find that building sales and mortgages accomplished 2,479 transactions with a total of AED 7 billion, whilst unit transactions crossed the AED 37 billion mark, amounting from 26,305 transactions.
The ‘Seeh Shuaib 1’, ‘Sheikh Mohammed Bin Rashed Gardens’, ‘Hebiya 3’, ‘Al Yafra 3’, and ‘Al Yafra 5’ are the top five areas of Dubai in terms of land sales transactions. Looking to the land mortgage transactions, the report reveals another five different areas; ‘Thunaya 5’, ‘Hebiya 3’, ‘Wadi Al Safa 6’, ‘Wadi Al Safa 5’, and ‘Al Thunaya 4’.
Business Bay took first place for total unit sales, followed by ‘Dubai Marina’, ‘Burj Khalifa’, ‘Jabal Ali’, and ‘Warsan 1’. Whilst for unit mortgages, ‘Dubai Marina’ came in first, followed by ‘Al Thunaya 5’, ‘Business Bay’, ‘Burj Khalifa’, and ‘Muaisem 1’. With regards to buildings, ‘Sheikh Mohammed Bin Rashed Gardens’ achieved the most prominent number of sales transactions, whilst ‘Thunaya 4’ topped the list for building mortgages.
Bin Mejren added: “There are a lot of positive signs contained within this report, which collectively demonstrate how the Dubai market is drawing great strength from a number of big infrastructure projects announced by the government. The most important contributing factor to these robust figures remains the preparations by the Dubai leadership, in partnership with leading developers, to deliver a number of mega-projects which are laying the groundwork for a significant global event, which is the largest of its kind in the world”.
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