PROPERTY STOCKS PROFIT MAY CROSS 50% MARK IN Q1
dubai — Realty transactions recorded a 38 per cent increase in the first quarter of 2014 compared to same period last year on renewed investor confidence in Dubai and the Land Department expects similar trend for the rest of the three quarters of the year.
Dubai Land Department (DLD) on Saturday announced that the total amount of real estate transactions exceeded Dh61 billion in March quarter over last year’s Dh44 billion worth of property deals in the same period.
“We expect the next three quarters to be similarly as active, especially as this period follows the launch of a number of stimulating economic projects in Dubai and the disclosure of some of the preparations for the city’s hosting of Expo 2020,” DLD director general Sultan Butti bin Merjen said in a statement.
Real estate market started witnessing signs of recovery last year and this year’s growth in activity is based on last year’s strong recovery, which is increasing further in 2014, according to a senior property consultant.
Earlier this year, DLD reported that the total value of real estate transactions in Dubai rose from Dh154 billion in 2012 to Dh236 billion in 2013. The sum of international real estate transactions for 2013 exceeded Dh114 billion, nearly half of the Dh236 billion total, according to DLD.
Commenting on the first quarter results, bin Merjen said: “The results of the first quarter 2014 reflect the renewed investor confidence in Dubai and specifically, in the city’s real estate sector, which is considered an integral component of the national economy.” The Dubai economy is expected to sustain its growth momentum according to Jones Lang LaSalle’s Dubai Real Estate Market Overview report, which cov- ers the first quarter of 2014.
Figures from the Department of Economic Development reveal the GDP of Dubai will grow 4.7 per cent in 2014, with the main drivers of the economy being tourism, trade, transportation and real estate. DLD’s Q1 report revealed that a total of 15,694 real estate transactions were recorded in the first quarter of 2014 — an increase in activity of 11 per cent over the same period last year. The statistics showed that there were 11,567 sales activities worth a total of Dh31.5 billion and 3,482 mortgage transactions, worth over Dh28 billion. Other categories accounted for Dh1.7 billion from 636 transactions, making the total value of transactions in all categories more than Dh61 billion.
Sales and mortgages relating to land transactions accounted for the lion’s share of the total figure, with land mortgages valued at Dh24.1 billion and land sales Dh17.4 billion. Sales and mortgages of residential units were worth Dh13 billion and Dh3.1 billion respectively. Buildings transactions came in at third place for activity, with sales registering Dh946 million and mortgages Dh810 million.
“The figures issued by DLD’s Real Estate Sector Development Department confirm the increased activity in the city’s real estate sector. They prove that Dubai is attracting property ownership, whether for long-term investment or for personal housing needs. We anticipate this heightening of activity to continue over the coming years, with property buyers achieving good returns on their real estate investments. We believe that these returns will be significantly greater than those from other economic sectors,” added Bin Mejren.
DLD’s report revealed that Al Hibiya 3, Dubai Marina and Al Thenaya Al Rabe’a were the most attractive areas for selling land, buildings and residential units.