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Sat 7 Nov 2015 01:53 AM

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Dubai property deals hit $50bn in first nine months of 2015

Dubai Land Department chief says new data shows 'sustainable growth' in Dubai real estate market

Dubai property deals hit $50bn in first nine months of 2015

Dubai Land Department has said that the total amount of real estate transactions in Dubai for the first nine months of 2015 was AED186.3 billion ($50.7 billion).

The government department said in a statement that it saw 33,907 transactions during the nine months.

It did not give a like-for-like comparison to last year's total but the total amount of real estate transactions in Dubai for the whole of 2014 exceeded AED218 billion ($59.3 billion), down 8 percent from the previous year.

The Real Estate Research and Studies Department at Dubai Land Department revealed that sales accounted for AED78 billion of the total, while mortgages accounted for around AED94 billion.

Commenting on the results, Sultan Butti Bin Mejren, director general of Dubai Land Department, said: "This report shows once again sustainable growth enjoyed by the real estate sector in Dubai, especially since the increase in supply is in harmony with the increase in demand for various real estate activities categories, including residential units, office space allocated for industrial purposes and installations, as well as growth in the development of hotel projects of various degrees."

He added: "Such numbers reassures investors, and maintain market momentum and its ability to pump new investments, especially with projects that help Dubai to prepare for Expo 2020.

"As the market is now is enjoying sustainable growth, we will see rewarding increases in the sales and rental prices, which means ensuring the satisfaction of all the players in the market."

Recent quarters have seen declines in Dubai's real estate sale prices as the market continues to stabilise after strong growth in 2013 and early 2014.

Dubai property prices fell by two percent in the third quarter of 2015 following a similar decline in the previous quarter, according to a report by consultants Cavendish Maxwell.

Its Dubai Residential Market Report said apartment and villa prices have both dropped by an average of two percent between July and September. Year on year, it said apartment prices have fallen by six percent and villas by nine percent.

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