It recorded residential, commercial and land deals worth 61 billion dirhams ($16.6 billion) in the first three months of the year, 38% higher than the AED44 billion sold in the same period last year. Overall, property transactions in the emirate climbed 53% last year to AED236 billion.
The transaction figures mirror those from brokers predicting an increase in residential prices this year that will match the 35% growth last year across Dubai. The Land Department is also bullish on the outlook.
“We expect the next three quarters to be similarly as active, especially as this period follows the launch of a number of stimulating economic projects in Dubai and the disclosure of some of the preparations for the city’s hosting of Expo 2020,” said Sultan Butti Bin Merjen, director general of the Dubai Land Department.
Here are some key points from the department’s latest figures.
The growth in the size of deals outstrips the number of deals. There were a total of 15,694 real estate transactions recorded in the first quarter of 2014, an increase in activity of 11% over the same period last year.
Cash buyers still make up the bulk of transactions. There were 3,482 mortgage transactions worth more than AED28 billion, while there were 11,567 cash sales worth a total of AED31.5 billion.
Land is being bought for future development. Land transactions were worth AED41.5 billion, residential units were worth AED16.1 billion and buildings transactions were worth AED1.75 billion.
Dubai is attracting more and more investors. In total, there was an 81% increase in the number of investors compared with the first quarter of 2013.-WSJ