- Bin Mejren: Government decisions boosted investor confidence and supported the attractiveness of the real estate sector
- Expo 2020 is close at hand, and developers in the market are expressing interest in aligning with the directives of the wise leadership to attract more investments
Dubai, United Arab Emirates, 07th July 2018: Dubai Land Department (DLD) has revealed that real estate transactions in Dubai for the first half of 2018 (H1 2018) reached AED 111 billion, reaffirming Dubai market's attractiveness and ability to compete with global investment destinations. The strengths portrayed by Dubai's real estate investments underscore the leadership's mandate to ease business processes and procedures.
According to the report issued by DLD's Department of Real Estates Studies & Research, H1 2018 recorded a total of 27,642 transactions, 18,191 sales worth about AED 40 billion, 7,668 mortgage transactions worth over AED 57.6 billion, and 1,783 other transactions valued at AED 13.4 billion.
His Excellency Sultan Butti bin Mejren, Director General of Dubai Land Department, commented: “The strategic decisions launched by the Government are in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and 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. '
Bin Mejren added: “We were also quick to adapt and align ourselves with these decisions: The 4% penalty that property owners were incurred for failing to register their developments within 60 days has been waived. This underpins the Government's efforts to provide the best possible services to investors and developers alike.”
Regarding the size of the investments, the report revealed that during H1 2018, the Dubai real estate market recorded 19,371 investments through 15,659 investors, totalling AED 37 billion. UAE nationals topped the list with 2,986 investments worth AED 6.8 billion, while Indian nationals ranked second — with investments that amounted to AED 5.9 billion through 3,218 investments — followed by Saudi Arabians whose investments were worth almost AED 3.7 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, respectively.
The report revealed as well that the total volume of GCC nationals' investments in Dubai's real estate exceeded AED 11.6 billion through 4,919 transactions made by 3700 investors, while 2,094 investors from 16 Arab countries concluded 2,561 transactions worth more than AED 4.115 billion. H1 2018 also saw 9,935 foreign investments from 143 nationalities making more than 11,889 transactions with a total value exceeding AED 21 billion.
The value of properties registered by female investors, as recorded by DLD, reached AED 9 billion through 5,526 transactions.
Bin Mejren concluded: “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 wise leadership to turn Dubai into a global pioneer and an attractive investment hub in support of Dubai Strategic Plan 2021.
Top 10 attractive areas:
In the list of top 10 areas in terms of the numbers and values of real estate transactions in the Dubai market during H1 2018, Business Bay topped the list with 1,934 transactions worth almost AED 4.2 billion, followed by Dubai Marina in second place with 1,445 transactions worth AED 2.9 billion, and Al Merkadh
The remaining seven areas went to Al Barsha South Fourth, Al Warsan 1, Jebel Ali First, Al Hebiah Fourth, Al Thanayah 5, Burj Khalifa and Al Yelayiss 2.
In terms of mortgages, Dubai Marina listed 498 transactions worth more than AED 1.7 billion, Jebel Ali First came in second with 454 transactions totalling AED 769 million, and Business Bay recorded 453 transactions exceeding AED 3 billion. The list also included Al Thanyah Fifth, Al Barsha South Fourth, Nad Al Shiba First, Wadi Al Safa 5, Palm Jumeirah, Burj Khalifa and the Thanyah Fourth.