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Tue 14 Aug 2012 05:24 PM

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Foreigners sink $5.9bn in Dubai homes in H1

Indians are biggest investors during first half of year, followed by Pakistanis and Brits

Foreigners sink $5.9bn in Dubai homes in H1

Foreign investments totalling AED22bn ($5.98bn) were made in Dubai's real estate market in the first half of the year, the emirate's Land Department said on Tuesday.

The Real Estate Investment Promotion and Management Centre said investors of various nationalities bought 12,875 properties including buildings, land, apartments and villas during H1.

"The real estate sector performance is moving from strength to strength over the past two years. The market has been attracting more foreign investors, which reflects the solid national economy and its excellent growth potentials," said Majida Ali Rashid, its chairwoman.

She said foreign investors' deals in freehold projects in Dubai were dominated by Indians.

Indian investors bought a total of 2,153 properties valued at AED3.751bn, while Pakistanis came second with a total of 1,814 properties at AED1.713bn.

Latest figures also showed that British investors bought a total of 1,564 properties worth AED2.529bn in the first half of 2012, ranking third.

Iranian and Russian investors completed the top five positions, with Iranians buying 1,057 properties worth AED1.515bn and Russians buying 694 properties at a total value of AED1.438bn.

It was reported last week that Iranian investors have snapped up property worth $128m in the world's tallest tower, the Burj Khalifa, in the last six months.

Saudis, Americans, Canadians and Jordanians were also prominent investors in Dubai's real estate market, the figures showed.

Sultan Al Akraf, senior director of the real estate registration services at the Land Department, said that the figures reflected "an ongoing upside trend and a positive growth in the real estate market performance in the emirate".

Earlier this month, it was reported that land transactions in Dubai reached AED63bn in the first half of 2012, a 21 percent increase on the same period last year

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.

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epm 7 years ago

The headline says it all. Sink being the appropriate word...

Red Snappa 7 years ago

The quest for sanctuary and the attendant capital flight from more difficult and potentially troubled environments, makes sense. Interesting data relating to Canadians and Americans.

Equally of interest, is what the transaction rate stands at if you remove mortgages, ijarah, mortgage portfolios, deferred sales and other transactions i.e. the crux of the matter in terms of recovery, pure housing sales.

No one doubts a marginal market improvement, it had reached a point where it couldn't get much worse, but a major leap in properties changing hands or being sold for the first time is the real litmus test for major progress.

Face it, there are still thousands of buyers out there who paid substantial sums to developers and are presently in 'no man's land', unlikely to ever see a property or a refund, a factor which taints the real estate market and which no amount of brushing under the carpet can dispel.

Celebrate an amorphous mass of transactions by all means but clean up the mess!

Disgruntled South Asian 7 years ago

India + Pakistan = AED 5.4 bn .. Yet the authorities in UAE put them behind every other country in this world (apart from Iran of course)

Maybe this piece of information will lead to better market segmentation and more opportunities for Pakistanis and Indians based in UAE.

Avi 7 years ago

I agree with you, what a headline

I am surprised how can somebody give such a heading to the article which is meant to improve the image of Dubai real estate..........Fact & figures maybe true but article is misleading.

Salem 7 years ago

@ Disgruntled South Asian(s)

What more do you want? May be you forgot that money cannot buy everything. Owning a property does not mean in any manner that you own the UAE. Get your facts right before you buy anything for this matter not only a property. In fact it is you who should be eternally grateful to the UAE authorities for allowing you being a foreigner to buy a property in the UAE.

Geko 7 years ago

When it comes to Indian and Pakistanis taking that chunk, can not be taken at prima facie. At this stage, their respective market can yield better even with in 5 to 10 years compare to the issues trapping in this RE market.

If this Dubai homes investment as safe haven tactics to evade taxation, it is not good for this society. Too many illegals infected in a society, can show their true face at one stage or the other.

Bugle 7 years ago

Are UAE nationals eternally grateful for buying property in London? Its not free that any one has to be eternally grateful to any one. Its a business.

WHJ 7 years ago

Salem. I understand that a lot of foreigners here complain about everything and anything most of the time, and I know that this is very irritating to a lot of us, locals and Arabs alike, who are proud of the UAE. But I have to say that allowing foreigners to buy property in the UAE is financially benificial to local developers and to the real estate sector in the UAE. So it seems to me the onus of gratitude is on both parties. Imagine if suddenly foreigners were no longer allowed to buy property in the UAE (especially Dubai). What do you think will happen to Emaar, Nakheel, Damac, UP......and to the real estate sector which is one of the main constituents of Dubai's GDP?

PPM 7 years ago

@Telco. Subtle and succinct. Neat comment.

MSM 7 years ago

It just shows rude arrogance