By Andy Sambidge
Senior official says 21% rise in real estate deals indicate 'strong performance' of sector
Land transactions in Dubai reached AED63bn in the first half of 2012, a 21 percent increase on the same period last year, a senior official said on Monday.
Sultan Butti bin Mejrin, director general of the Dubai Land Department, said the emirate witnessed a total of 18,953 transactions to the end of June at an average of 133 per day.
The transactions include sales, mortgages, ijarah, mortgage portfolios, deferred sales and other transactions.
Bin Mejrin said the number of transactions was an "important indicator of the growth and strong performance of the market".
"The real estate market in Dubai has shown high levels of flexibility in meeting investor requirements and trends during H1, specially the new investors looking to benefit from the price correction that emerged in the past two years," he added.
He said prices had increased in the past few months due to high demand for buying lands, villas and flats in certain areas of Dubai.
In H1, Dubai saw 14,652 sales transactions worth AED30.8bn while 3,363 mortgage transactions were completed worth AED29.6bn.
Due to attractive offers, the sale of apartments and mortgage transactions outperformed the transactions on villas, according to Hamda Al Shamsi, deputy director of the Real Estate Development Department.
Total real estate transactions in Dubai rose by 20 percent in 2011 compared to the previous year.
Transactions reached 35,297 and were valued at around AED143bn ($38.9bn) last year in Dubai.
Dubai was one of the hardest hit markets as a result of the global downturn in the property sector, with prices tumbling by nearly 60 percent and half of projects put on hold or cancelled.
Mixed transaction types are one thing, several thousand freehold properties changing hands each month makes a 'buoyant' property market, that is not going to happen for a few years yet.
I would be surpised if any of the land was sold for any purpose other than hospitality or lease only residential building.