By Andy Sambidge
Dubai Land Department chief says 38% increase confirms 'renewed investor confidence' in emirate
Dubai Land Department (DLD) has announced that the real estate transactions recorded in the emirate during the first quarter of this year exceeded AED61 billion ($16.6 billion), up 38 percent over the same period last year.
DLD's report revealed that a total of 15,694 real estate deals were completed in the three months to March 31 - an increase in activity of 11 percent.
The statistics also showed that there were 11,567 sales activities worth a total of AED31.5 billion and 3,482 mortgage transactions, worth over AED28 billion.
Sultan Butti Bin Merjen, director general of DLD, 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.
"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."
Sales and mortgages relating to land transactions accounted for the lion's share of the total figure in Q1, with land mortgages valued at AED24.1 billion and land sales AED17.4 billion.
Sales and mortgages of residential units were worth AED13 billion and AED 3.1 billion respectively.
"The figures 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," added Bin Mejren.For all the latest real estate 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.
I can never understand why the DLD continue to release biased data showing that everything is going up over 30%. So much for the sustainable growth everybody was looking for. The definition of a bubble in property is when property prices are rising more than 10% pa. We are currently a bubble cycle and most likely close to the top end.
Also, the numbers are misleading and are not accompanied by any narative. What the article fails to point out is that the volume and value actually fell vs Q4 2013. This is a sign of a slowing of the top end of the cycle.
Also, what was not pointed out by the article is that Q1 2014 figures would be slightly inflated as many people rushed to get mortgages approved before 31 December 2013. These mortgage letters were honored into Q1 2014 and led to higher volume.
Lets see where Q2 gets to but April is already showing lower numbers than March and this could be the upcoming quarter when all starts to turn around!!