By Andy Sambidge
Dubai Land Department chief says latest figures will help 'ensure sustainability and long-term stability' to market
Gulf investors spent a total of more than AED19 billion ($5.17 billion) on Dubai's real estate market during the first half of 2014, according to figures released by the Dubai Land Department (DLD).
Emirati investment formed the lion's share of this figure, totalling AED12.5 billion, representing almost double the AED6.5 billion figure invested by all other GCC nationals combined.
"UAE investors made 2,513 transactions worth a total of AED12.568 billion in the first six months of the current year and in doing so, were placed at the GCC top spot well above all other investors in Dubai's real estate market," said Sultan Butti Bin Mejren, director general of DLD.
"The figure indicates the great demand from UAE nationals in investing in property in Dubai and sends out a reassuring message to all other categories of investor. In addition to strengthening confidence in the market, it provides solid foundations that will ensure its sustainability and long-term stability," he added.
DLD's report revealed that citizens of Saudi Arabia were ranked in second place on the list of GCC real estate investment after making 1,121 transactions worth AED3.3billion in the first half of 2014.
Qataris were ranked third with 113 transactions worth AED1.463 billion, followed by Kuwaitis (263 transactions worth AED 839 million), Omanis (AED 482 million) and Bahrainis (AED247 million).
Annual growth in prime property prices in Dubai almost halved in the second quarter of 2014 compared to the previous quarter, Knight Frank said last month.
Prime prices rose by 6.3 percent in the year to June, down from 11.7 percent in the last quarter, its Prime Global Cities Index for Q2 revealed.
Dubai was ranked the 13th best performing real estate market tracked by the property consultancy, a sharp fall from previous quarters when the emirate has featured in the top two positions.
Please AB start doing your own research instead of just dishing out a set of useless figures.
What about the breakdown between Land and Villas and Apartments? What about the breakdown between Freehold allowed areas for Expats and areas where Expats are not allowed to invest? What about comparing month by month the last 6 months with last year? What about talking about the volume of villas sold in the last 6 months vs the volume last year?
No detail here except a preppy tag line - I honestly think that the lack of comments in the property section of AB lately has been because people have just stopped reading it because it is just a replay of quotes with no analysis attached.
A property market always slows before it enters a full decline. It's the same the whole world over, as in, it has reached the crossroads of value for money once again. UAE and GCC citizens are buying for the rental market, however, the number of foreign investors that do not originate from Middle East countries is just bound to go down, because of the uncertainty about the future of Iraq next door. Religious extremists currently in the ascendant, threatening the stability of the whole of the region are quite simply bad for business, be it property investment, hotel occupancy (45% in August according to AB report), tourism in general, attendance at MICE events or retail, the list is longer still.