By Elizabeth Broomhall
Figures were boosted after 6,400 new investors entered the market, data showed
The value of property transactions in Dubai surged by 20 percent during 2011, hitting AED143bn for the year, Dubai’s real estate watchdog said Wednesday.
The figure rose from AED120bn in 2010, boosted by 6,400 new investors who entered the market, data from the emirate’s real estate regulatory agency (RERA) showed.
“This is a good sign that investors are coming back,” said Marwan bin Ghalaita, CEO of RERA.
“We can expect 2012 to show the same increase or stay at the same level. We are marketing the real estate environment as transparent and secure.”
The majority of transactions were for lands, he said, where purchases topped AED94bn during the year, with the majority of investors from the UAE, India and the UK.
Flat and villa purchases were valued at AED48bn and AED6bn respectively, with most buyers either of Indian, UK or Pakistani descent.
Dubai’s property market was hit hard by the global financial crisis, which saw house prices tumble by more than 60 percent and scores of investors flee the market as funding dried up.
Though the value of transactions last year continued to fall short of its 2009 high of AED158bn, industry experts believe the market is finally getting back on track.
However, officials warned that the market will remain oversupplied in the short term, with some 10,700 units coming online last year and another 15,000 to 16,000 expected to be delivered in 2012.
Of the 200 projects currently under construction in the emirate, RERA expects at least a third to be handed over within the next 12 months.
“We have 62 projects which have almost completed, which will enter the market in 2012,” said bin Ghalaita.
“There are another 44 projects with a very good chance of entering the market in 2012.”
Some 220 projects are still under evaluation, he said, as RERA mulls further project cancellations.
The regulator, which cancelled 202 projects at the end of 2010, said last year that any property projects deemed economically unfeasible would face termination between now and 2016.
Yes indeed an uplift in figures, does that mean 6,400 out of the 330,000 properties were sold (1.9%)? There are currently 21,234 Dubai properties for sale on a major listing site, presumably there were near enough 28,ooo listed in Jan 2011? Would AB mind asking?
One factor I note is the absence of any comment on the thousands of original investors who dutifully paid their advances and staged payments and have received nothing in return. Surely that is a conundrum that needs addressing before we start crowing about the market.
Manipulation of stats has developed into an art form, there is absolutely no way you can interpret anything from this.
Having taken a 2nd look at the content of the article, some points worthy of note are:
1) Out of US$ 143 billion's worth of RERA recorded transactions in 2011, US$ 94 billion were for land sales. Does that not imply an intention to build yet more, a lot more, to add to the oversupply.
2) 62 almost complete projects that will enter the market in 2012 and another 44 that have a good chance of entering the market in 2012. That by implication represents quite a lot of property adding to the oversupply.
3) If official figures say 10,700 units delivered in 2011 and another 15 to 16,000, then that means that we need triple the number of new investors in 2012 (6,400 x 3), to soak up the brand new inventory items, never mind what's already out there?
I have a property in ajman in emirates city for which I have paid the amount of 1 lac 7000. Till now there is nothing on the plot.
the property is SAHARA TOWERS IN EMIRATES CITY.
I need the money back but cannot get through.
Please help me how I can get back the money. What is the procedure.
The person in charge is telling me to buy property which is more then the market value. I just need my cash back so please help.
Thanks & regards
Please help I own a property with chapal now known as best emirates. I have paid nearly 2 lac & 11 thousand for my property which was supposed to be given by 2009 now its 2012 yet there is now sign of my property.
Kindly reply back to email@example.com you can also contact me on 0506599271
Thanks & regards
MRS FATIMA NASIR
1) Yes I also noticed this and I do not know what to make of it. I suspect they are part of some internal transactions because I doubt there is appetite for such level of construction.
3) this is an easy one. The 100,000 new arrivals to Dubai are all investors. Ask Birdie.
I have long ago stopped using any number published as they usually come with too many issues. Luckily I no longer need to make forecasts four the GCC countries.
Dubai lagoon / Schon project . please lookinto this urgently 1000 of investors are suffering
Since the property in sports city known by the name of destiny tower 2 which is not being constructed it was in the name of chapal now known as best emirates.please let me know how I can get back the entire money which I paid to the builder.
The same problem is with AJMAN emirates city property in the name of sahara developers my flat booked in sahara towers is not being constructed & the money is paid to the developers it is also delayed for 3 yrs & now not being constructed. I need to take back the entire amount which I paid to them. Please let me know how can I deal with this matter to refund the money without any hassles.
Thanks & regards
The property is already delayed by 3 yrs & yet no sign of further constructions. Please let me know the procedure as how can I get back the paid amt.
Thanks & regards
I don't believe anything they are saying. All figures are distorted since the beginning.