Overall property transactions in Dubai totalled Dh111 billion for the first half of 2018, says the Dubai Land Department (DLD). This was done through 27,642 transactions.
In the first six months, Business Bay and Dubai Marina were the leaders in terms of investor picks, accounting for 1,934 and 1,445 transactions, while the Al Merkadh neighbourhood had 1,262 deals.
In terms of value too, Business Bay reigned, with its transactions accounting for a sizeable Dh4.2 billion. Dubai Marina was placed second with Dh2.9 billion worth of transactions and Dh2.1 billion for Al Merkadh.
Sultan Butti bin Mejren, director-general of DLD, said: “The government’s strategic decisions have had a significant impact on sustainable growth and on strengthening the competitiveness of the national economy. Granting investors a UAE residency visa for up to 10 years and reducing government fees included in previous initiatives will be of the most important incentives for economic growth in the emirate as they will have a positive impact on reducing business costs and will support Dubai’s position as one of the best investment destinations in the world.”
There were 7,668 transactions that were financed through mortgages, valued at a combined Dh57.6 billion. Increased mortgage-back deals mean that end-user buyers are active in the market.
In terms of mortgages, Dubai Marina listed 498 transactions worth more than Dh1.7 billion, Jebel Ali First came in second with 454 transactions totalling Dh769 million and Business Bay recorded 453 transactions exceeding Dh3 billion.
Bin Mejren added: “If we were to identify the reason behind the strengthening real estate market, it would be the level of maturity it has reached to maintain its sustainable growth. Expo 2020 is close at hand, and developers in the market are expressing interest in aligning with the directives of the leadership to turn Dubai into a global pioneer and an attractive investment hub in support of Dubai Strategic Plan 2021.”
While Emirati investors ranked first in both the number and value of transactions – being involved in 2,986 transactions worth Dh6.8 billion – Indian nationals came in second with 3,218 transactions at Dh5.9 billion. This was followed by Saudis whose investments were worth almost Dh3.7 billion through 1,415 investments. The list of top 10 investors by nationality also included Dubai residents from Britain, Pakistan, China, Egypt, Jordan and France.
The investments put in by Gulf nationals exceeded Dh11.6 billion through 4,919 transactions. Arab investors concluded 2,561 transactions worth more than Dh4.115 billion. The value of properties registered by female investors reached Dh9 billion through 5,526 transactions.
Market observers are upbeat in their outlook about H2 2018 in the wake of several path-breaking decisions announced in the past months. These include a 10-year visa for investors, allowing funds and REITs to list on the Dubai Financial Market, reducing fines and providing payment plans to expired business licences, stimulation of businesses by releasing Dh14 billion in the form of visa deposits, allowing many businesses to own 100 per cent of their shareholding, six-month visas for people looking for work opportunities, freeze on school fees, etc.
Source: Khaleej Times