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Sun 30 Sep 2012 05:30 PM

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Hamptons sees 106% rise in H1 Dubai deals

Property firm says transactions growth demonstrates rising confidence in UAE market

Hamptons sees 106% rise in H1 Dubai deals
(AFP/Getty Images)

Hamptons MENA, the property services company, said it has recorded a growth in the value of property transactions facilitated by the company by over 106 percent in the first half of 2012.

The Dubai-based company said in a statement that the number of transactions increased by 69 percent during the same period.

Niraj Masand, head of operations at Hamptons MENA, said: "The growth trends recorded are a strong demonstration of the rising market confidence in Dubai's property sector.

"The increase in number of buyers, compared with the number of sellers, throughout the year also highlights that the demand-side is stronger, which will have a further positive impact on prices, in turn benefiting the investors."

The company said it saw the highest demand in established communities such as Emirates Living, Dubai Marina and Downtown Dubai, with an average ratio of one seller to two buyers.

It also said there was a "significant drop" in the number of distress sellers, with the property owners preferring to set the price, leveraging the growing demand for homes.

"We are confident of a positive growth outlook for the property sector, which has gained significantly from the overall growth of Dubai's economy led by its core sectors of retail, tourism, hospitality, trade, aviation and logistics," added Masand.

According to reports by the Dubai Land Department, the number of land transactions during the first half of 2012 increased by 21 percent to reach AED63bn.

Overall the number of property transactions in the first six months of the year increased by 24.5 percent to 12,521.

The demand for property has also been bolstered by increasing availability of home finance, according to the latest report by the Royal Institution of Chartered Surveyors (RICS).

Masand said: "We expect the market prices for properties in well-established communities to increase in the coming months, led by the continued demand.

"Prime developments have also witnessed moderate gains in price and rental appreciation, a trend that is projected to continue through the rest of the year."