The value of property transactions in Dubai surged by 20 percent during 2011, hitting AED143bn for the year, Dubai’s real estate watchdog said Wednesday.
The figure rose from AED120bn in 2010, boosted by 6,400 new investors who entered the market, data from the emirate’s real estate regulatory agency (RERA) showed.
“This is a good sign that investors are coming back,” said Marwan bin Ghalaita, CEO of RERA.
“We can expect 2012 to show the same increase or stay at the same level. We are marketing the real estate environment as transparent and secure.”
The majority of transactions were for lands, he said, where purchases topped AED94bn during the year, with the majority of investors from the UAE, India and the UK.
Flat and villa purchases were valued at AED48bn and AED6bn respectively, with most buyers either of Indian, UK or Pakistani descent.
Dubai’s property market was hit hard by the global financial crisis, which saw house prices tumble by more than 60 percent and scores of investors flee the market as funding dried up.
Though the value of transactions last year continued to fall short of its 2009 high of AED158bn, industry experts believe the market is finally getting back on track.
However, officials warned that the market will remain oversupplied in the short term, with some 10,700 units coming online last year and another 15,000 to 16,000 expected to be delivered in 2012.
Of the 200 projects currently under construction in the emirate, RERA expects at least a third to be handed over within the next 12 months.
“We have 62 projects which have almost completed, which will enter the market in 2012,” said bin Ghalaita.
“There are another 44 projects with a very good chance of entering the market in 2012.”
Some 220 projects are still under evaluation, he said, as RERA mulls further project cancellations.
The regulator, which cancelled 202 projects at the end of 2010, said last year that any property projects deemed economically unfeasible would face termination between now and 2016.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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