The value of real estate’s transactions in Dubai in February 2017
reached 24.563 Billion Dirhams, registering a growth of 74% compared to the corresponding month of 2016.
The experts confirmed that the real estate market in Dubai is very strong, especially in the new suburbs of Dubai.
They attributed the reason behind achieving good monthly rates to the state of optimism among investors about the real estate market in the Emirate, and the good revenue achieved by real estate investment, in addition to the flexibility of the real estate finance.
The Real Estate’s Transactions
According to statistics of the Dubai Land Department about the real estate transactions including the sales and mortgages in the Emirate; the movement has maintained its pace in achieving good monthly rates since the beginning of this year, and recorded 24.563 billion dirhams in February compared to 26.636 billion dirhams in January, taking into account the fact that February is 28 days long.
The statistics revealed that the transactions recorded a jump during the February comparing to the same month in 2016, in which the transactions recorded 14.1 billion dirhams, i.e. a growth rate of 74%.
The statements of the Dubai Land Department showed that real estate transactions during February 2017 were distributed between sales transactions amounted 11.797 billion dirhams, and mortgages valued
at 12.766 billion dirham.
The Chairman of the Board of Directors of «Reign Holding», Samir Salya, attributed the growth of real estate transactions in Dubai in February 2017 comparing to the same month in 2016, and maintaining the good pace, to several factors, most notably the optimism about the real estate market in the Emirate, and trends to take advantage of the good rental revenue, to achieve strong profits from investment in buying real properties.
Salya stressed that the real estate leasing market in Dubai is very strong, especially in the new areas in the outskirts of Dubai, which experience high growth, such as Dubai Sports City, and «Jumeirah Village Circular», «Discovery Gardens», and «International City», in which the rental revenues range between 9 and 10%, which made these companies and funds buying real properties in these new areas, in order to achieve good rental and investment yield.
The Chief Executive Officer of «Standard Real Estate Management Co.», Abdul Karim Al-Mulla, said that real estate investors began to abandon their cautious attitude to buy real properties, which is witnessed by the real estate market in the past few months, relying on the optimistic view about the continuation of the growth momentum in Dubai until 2020, especially with the economic boom in the Emirate over the past five years in the aviation and tourism sectors, and this growth will lead naturally to the increasing the numbers of persons who wish to visit Dubai.
Al-Mulla stressed that the flexibility in finance, in the last period, contributed to the good pace of the transactions in real estate market, and said: «Finally, we have seen some positive signs in this regard, and we ask for more cooperation to reach more flexible repayment plans, which will serve the end-users’ interests»
Also, He added that the flexibility of real estate developers had a positive impact on the market, since the developers started to examine the market requirements to ensure smooth transition, which archive the satisfaction of the final buyer of the property, from the beginning of the project until its completion.
The Executive Director of «Al Ruwad Real Estate Consultants», Ismail Al Hammadi, contributed to the good pace of the transactions in real estate market to several factors, most notably the high level of optimism among real estate investors about the real estate market, and new projects announced by the developers, which offer appropriate prices and easy methods of financing.
He explained that the movement of foreign investments in the Emirate of Dubai plays an effective role in market’s activity, and gives strong impetus to the implementation of projects, especially the residential projects, hotel apartments, and retail shops, which are one of the most attractive sectors for the direct foreign investments in the Emirate.