Dubai: There was enough going on in Dubai’s freehold zones and elsewhere in the city for overall real estate transactions in 2016 to total Dh259 billion, just shy of the Dh267 billion during the year before, according to official data from Dubai Land Department.
It is a relative strong showing given that by mid-2016, it was felt among industry sources that the level of buying activity would tail off significantly further given that the market was still in a severe corrective phase. But the last six months, especially from September onwards, showed investors making a return in sizable enough numbers.
The leasing marketplace saw over 410,000 contracts being entered, both for residential and commercial properties.
Burj Khalifa and the areas around it recorded the highest combined value for property sales – it secured more than Dh7 billion from 2,097 transactions. In second place was Dubai Marina area, which from its 2,937 transactions pulled in Dh6.3 billion. Business Bay was in third place with Dh6.2 billion.
But in terms of volumes, Business Bay was the clear winner, overseeing 3,508 property deals during the 12 months. In terms of plot sales, the Seeh Shuaib was as the most popular with investors, with a combined value of Dh3 billion from 1,684 transactions. It was followed by Al Yafra 3, Al Yafra 2, Al Hebeya 3 and Shaikh Mohammad Bin Rashid Gardens.
The Land Department report shows that 60,595 transactions took place to make up the Dh259 billion. Of these, more than 41,776 deals were from sales (for Dh103 billion) while 15,000 mortgage-based transactions totalled Dh128 billion. (In value terms, commercial land (already built on) had the highest share, representing 30 per cent, of the total value secured by transactions in 2016.)
Apart from property buyers, new developers continued to come on board - the Developers Registration indicates 55 new players making an entry last year. There were 134 new projects launched with a combined value of Dh100 billion. On the completion side, 62 projects (both in freehold zones and outside) hit the finish line.
In terms of real estate related services, the Land Department issued 695 licenses, brokers licensed to do both sales and renting accounting for 272 licenses. (Dubai currently has 5,933 brokers being registered, while the number of offices operated by them were 2,285.
There has also been demand for other licensing categories including “property valuation services, rental services and property management to third-parties”, the statement added.
Dubai's most popular places with investors
* The top five areas in Dubai attracting the highest volumes and investments in 2016 were - Business Bay, Dubai Marina, Jebel Ali 1, Burj Khalifa and Warsan 1.
* For land sales, the investors homed in on Seeh Shuaib, Al Yafra 3, Al Yafra 2, Al Hebeya 3 and Shaikh Mohammad Bin Rashid Gardens.
* As for sales involving whole buildings, the Shaikh Mohammad Bin Rashid Gardens was the most prominent (699 transactions valued at Dh1.8 billion) and followed by Al Yalayis 1, Al Thunaya 4, Al Yalayis 2, and Nad Al Sheba 1.
* The maximum number of land mortgage based transactions was recorded in Al Thunaya 5 (totaling 352 such deals and for Dh2.27 billion), and followed by Al Hibeya 3, and Wadi Al Safa 6.
* Among locations with the highest mortgage based property transactions, Dubai Marina led the way with 1,107 deals amounting to Dh1.72 billion. It was followed by Thunaya 5, where 953 deals came to Dh1.25 billion, and Business Bay had 783 transactions for Dh1.15 billion.
