The Dubai Land Department has presented figures that have shown a substantial increase in sales, when analysing the numbers from 2011 property transactions.
In total, Dubai realised 35,297 deals in 2011 alone, representing a 16% increase. Dubai’s property market conditions also show some improvement in all aspects, as spending on products that are related to property increased by 20 per cent from 2010 to 2011, these are products such as; property sales, mortgages, ijarah, mortgage portfolios and deferred sales.
Additionally the value of all the deals that were processed in 2011 has increased. In 2010 $33.4 billion was spent on Dubai property, whereas this amplified to $38.9 billion in 2011 – an increase of 14%.
The Department also stated that in terms of the breakdown of these sales, 78.98% of all the property transactions were for flats or apartments.
“The transactions’ quantity, quality and procedures reflect the recovery and growth of the real estate market in Dubai due to the direct support from the local government that spared no effort to achieve market’s stability and growth, enhance the attractiveness of real estate investment along with boosting the confidence of investors.”
Industry experts all stated reasons that resulted in the elevation of Dubai’s property market, highlighting a number of these positive factors;
Vineet Kumar, Head of Business Development at Asteco said
“Financing has remained tough since the property downtown began in the third quarter of 2008 but sentiment has improved as banks began to offer more attractive mortgage rates this year. The government’s declaration that property buyers in Dubai will be given a visa for three years instead of just six months will also help boost investor confidence. Transaction levels have also risen as job security and increased market confidence result in people seeking tenancy upgrades and home ownership,”
In a statement to Zawya Dow Jones Emaar predicted that 2012 will see further positive growth throughout Dubai’s property market. Emaar is one of Dubai leading property developers and the creator of the World’s tallest building.
“Dubai has effectively restructured its economy, following the challenges of the global financial crisis, and is now steadily consolidating its fundamentals. Following the socio-political changes emerging from the Arab Spring, elsewhere in the Middle East, more businesses are looking to establish their regional headquarters or expand their market presence to the UAE and Dubai. The property sector of the city is poised to benefit from this and record positive growth in 2012, across residential, commercial, retail and hospitality,” Emaar said.