123 nationalities and 8650 investor buys in Dubai real estate market

GCC nationals invest AED 9 billion, Arabs AED 3 billion and Forgeiners AED 12 billion

Dubai, UAE, April 25, 2015: Dubai Land Department's (DLD) annual report issued by Real Estate Research and Studies Department has announced that the total amount of real estate transactions recorded in the emirate in the first quarter of 2015 exceeded AED 64 billion, through 11,603 transaction. The same report show the sum of real estate investment transactions exceeded AED 24 billion, through 8650 investor.

In details, the report reveals a AED 3 billion increase in transactions value, this increase is a proof of sustainable growth, as the sales accounted 8,000 transaction with the a total value of AED 24 billion, while the mortgages accounted more than AED 37 billion from 3,000 transaction, leaving all remaining operations at only 546 transaction with the total value of AED 2 billion.

HE Sultan Butti Bin Mejren, Director General of Dubai Land Department commenting on the results: "the department is always keen on issuing the quarterly results of real estate transaction in Dubai for transparency that will help investors and customers in making decisions based on strong foundations. The figures in this report are showing a well-established trust in our real estate market, as well as full preparations and readiness with for quantum leaps in the next few years to receive the Expo 2020."

Looking at the transactions, Sales and mortgages relating to land transactions recorded more than AED 52 billion from the total real estate figure for Q1 2015, with the total of 3,919 transactions. The commercial lands (already built on) acquired the lion share in terms of value for the type of land with 57% in total, amounting AED 30 billion, noting that other lands include agricultural land devoted to the development of industrial projects, exhibitions, hotels and residences, and other uses.

Looking at the value of transactions by the kind of property, we find that the buildings and units transactions exceeded 7,823 transactions with a total value of AED 11 billion during Q1 of 2015.  But it appears that the housing units captured the lion's share of 8,408 billion dirhams and 74.6 percent, the remaining amount of business units with 2.2 billion, and less than 1 billion dirhams for the buildings. Numbers appears that the housing units captured the lion's share with AED 8,408 billion and 74.6%, the remaining amount of business units accounted AED 2.2 billion, and less than 1 billion dirhams for the buildings.

In reference to areas, "Al Yafra 2" area of Dubai was revealed to be the most attractive for transactions, in terms of land value sales, with the value of its transactions reaching AED1.467 billion through 614 sale transaction. This was followed by Al Hebya Al Thaletha with a total of 307 sale transaction worth of AED 994 million, where Al Warsan took the third place with 161 transaction worth AED 357 million. As for mortgages of lands, "Al Barsha South 1" came in first through 289 transaction worth of AED 291 million, followed by "Al Thunaya 4" and "Al Thunaya 5".

It was different for unit sales, as Business Bay area came in first. with the value of its transactions reaching AED 1.848 billion through 1202 sale transaction. This was followed by Dubai Marina with a total of 524 sale transaction worth of AED 1.181 billion, where "Al Thunaya 5" came after with 452 transaction worth AED 568 million. As for mortgages of units, Dubai Marina came in first through 226 transaction worth of AED 444 million, followed by Business Bay, "Al Thunaya 5", "Wadi Al Safa 2" and Burj Khalifa.

As for buildings, "Al Thunaya 4" topped all areas in terms of sales, with the value of its transactions reaching AED 172 million through 69 sale transaction. This was followed by "Al Barsha South 4" with a total of 39 sale transaction worth of AED 96 million, where "Al Safa 6" took the third place with 36 transaction worth AED 96 million. As for mortgages of buildings, "Al Thunaya 4" came in first through 58 transaction worth of AED 115 million, followed by "Wadi Safa 6" and "Al Barsha South 4".

The DLD investment report, revealed that citizens of Gulf Cooperation Council (GCC) states contributed highly in the Q1 of 2015, as their investments amounted AED 9 billion from 1964 investors. Emirati investment formed the lion's share of this figure with total transactions of AED 5.799 billion amounted from 980 investor, while citizens of Saudi Arabia came in at second place after making transactions worth AED 1.890 billion amounted from 604 incestor, followed by Kuwaiti nationals from the number of investors after making transactions worth of AED 500 million through 170 investor, following them Qatari nationals after making transactions worth of AED 522 million, and Omani nationals after making transactions worth of AED 147 million. Finally investors from Bahrain invested AED 199 million, through 44 investors.

As for Arab investors their total value of transactions amounting to more than AED 3 billion, through 15 Arab nationalities and 1220 investor. DLD's report revealed that Jordanian investors ranked highest in terms of number of transactions at nearly AED 708 million worth of deals through 204 investors. They were followed by citizens of Egypt with 184 investor with a total of AED 390 million, followed by Lebanese investors with 172 investors with a total amount of AED 505 million, with Iraqi nationals came in fifth place with 153 investors with a total amount of AED 379 million. They were followed by Yemen, Sudan, Palestine and Algeria.

The total value of non-Arab investment in the Dubai real estate market amounted to more than AED 12 billion through 5466 investors and 102 nationalities. Indian nationals were ranked the highest value foreign investors, making transactions with a total of AED 3.040 billion worth of property transactions through 1293 investors. Investors from Pakistan came in second with number of investors as they reached 953 investors with a total of AED 1.392 billion worth of property transactions.  British investment came third at AED 1.892 billion through 699 investors. They were followed by Iran and Russia with total of AED 633 million and AED 509 million.

© Press Release 2015