By Andy Sambidge
Dubai Land Dep't chief says deals reached $38.9bn last year, up by a fifth on 2010
Total real estate transactions in Dubai rose by 20 percent in 2011 compared to the previous year, the emirate's Land Department said on Monday.
Transactions reached 35,297 and were valued at around AED143bn ($38.9bn) last year in Dubai. The transactions include sales, mortgages, ijarah, mortgage portfolios, deferred sales and other transactions.
Sultan Butti bin Mejrin, director general of the Land Department, said the figures for 2011 represented a 20 percent increase in the value of transactions compared to 2010.
He added in a statement that the "quantity, quality and procedures reflect the recovery and growth of the real estate market in Dubai".
He said the local government had "spared no effort to achieve market's stability and growth", adding that the property market had again become attractive to investors.
The Land Department figures showed a 12 percent increase in mortgages compared to last year, with mortgages representing 60 percent of the total transactions conducted in 2011.
"This indicates the recovery of the property financing and the return of healthy activities," the Land Department statement said.
Bin Mejren added: "The total value of the transactions clearly reflect the unequivocal return of the real estate market to normal levels, the exit of speculators, the maturity of the real estate market, the increased investor awareness of the importance of long-term investment in this vital sector."
He said he expected to see "strong recovery" in 2012, with investors increasing their investments in Dubai.
Total transactions for apartments in Dubai last year reached 26,465 at the value of AED43bn, the figures showed, while total transactions for villas reached AED6bn.
This could also be due to completion of long pending projects and handover and resales of this handover properties from investors desperate to cash out. Which will only result in more pressure on price.
Dubai will become attractive for investors only when their investment is safeguard with strong laws that protect their interest.
It looks like Nakheel is doing all it can to break this happy party up.
Would love to know the breakdown as to which developments and suppliers this is all coming from though!
This only shows that the so called 'experts' and 'analysts' were indulging in scaremongering, hoping to drive the prices down -so they could by at lower levels .
They have been proved horribly wrong !
Some otherwise reputed real estate firms and wannabe investment banks released reports using terms such as 'oversupplied' and 'glutted' etc.
They too are now eating crow !
We know not too many clients like to pay fees for research, but perhaps if these firms hired better qualified and more experienced staff ,they would improve their credibility and therefore their revenue.
Lies, bigger lies & then statistics.....is there anyone who beleives what this articles is trying to 'sell'....
I disagree with the figure quoted. as the Dubai real estate is getting worst due to the unstable policy of UAE for foreign investers.And the commitments made at the time of investment are not executed like resident visa,openning a current account in the bank,completion of the projects etc.12 % increase in the mortgage means that the only resident of UAE can get mortgage not the foreign investers and that 12 % is not much.
It would also be interesting to see how many of these transactions were done on free/leasehold areas and how many in areas reserved for locals and GCC buyers.
Cannot wait to see the figures for 2012. With the appalling treatment of all Nakheels tenants, especially on the Palm Jumeirah Shoreline Apartments, I bet the Dubai property transaction total will drop through the floor in 2012. Who would want to risk their hard earned savings with a major government property developer like Nakheel threatening to lock most of the tenants in the Shoreline Apartments out of their apartments from 15 Jan 2012.
I am so shocked to see Nakheel destroying the re-sale value of its properties. Are they never going t0 try to sell another Nakheel property themselves, or do they think the world will just forget, or do no Google research before buying?
What the Land Department conveniently forgets is the FACT that the total number of transactions are actually 8% down compared to 2010, its only the monetary value that has gone up (!).
I would assume a lot of the transactions are bogus intra-developer transactions and surely a declining number of transactions are a more credible picture of the activity levels than the AED value, which can easily be skewed by one big transaction.
Again, people have been trying to talk the market back up since the crash and they will continue to do until it finally happens.
If so, the LD should be more than happy to provide a breakdown of the transactions. Which area, what type of unit, price per sqft, demographics of the purchaser...
If everything adds up, there should be no reason to hold back the information, as it will only strengthen the market and establish a certain confidence and direction of the market.
I'd be happy to change my mind about Dubai Real Estate market