Value of Dubai real estate transactions drops 16%

July 08, 2018

undefinedDubai real estate transactions for the first half of 2018 came in at AED 111bn ($30.2bn), according to Dubai Land Department (DLD).

The result is a drop of 15.9% from the AED 132bn reported by the body for the first half of 2017.

The total number of transactions fell by 22% to 27,642, from 35,571 in the year-earlier period.

Of the total number of transactions there were 18,191 sales worth about AED 40bn, 7,668 mortgage transactions worth over AED 57.6bn, and 1,783 other transactions valued at AED 13.4bn.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai recently announced a raft of incentives to maintain the emirate’s economic momentum, including cutting fees and issuing new visa regulations.

His Excellency Sultan Butti bin Mejren, Director General of Dubai Land Department, said: “Granting investors a UAE residency visa for up to 10 years and reducing government fees included in previous initiatives will be of the most important incentives for economic growth in the Emirate, as they will have a positive impact on reducing business costs and will support Dubai's position as one of the best investment destinations in the world. "

Bin Mejren added: “We were also quick to adapt and align ourselves with these decisions: The 4% penalty that property owners were incurred for failing to register their developments within 60 days has been waived. This underpins the Government’s efforts to provide the best possible services to investors and developers alike.”

The Dubai real estate market recorded 19,371 investments through 15,659 investors, totaling AED 37bn in the first half of the year.

UAE nationals topped the list with investments worth AED 6.8bn, while Indian nationals ranked second with investments amounting to AED 5.9bn followed by Saudi Arabians with AED 3.7bn.

The list of top 10 investors by nationality also included Dubai residents from Britain, Pakistan, China, Egypt, Jordan and France, respectively.

H1 2018 saw foreign investments from 143 nationalities with a total value exceeding AED 21bn.

Business Bay topped the list of most attractive areas with transactions worth almost AED 4.2bn, followed by Dubai Marina with transactions worth AED 2.9bn and Al Merkadh with AED 2.1bn.

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