Dubai’s real estate transactions top $77.5b in 2017

Dubai’s real estate market registered solid growth in 2017 with the total transactions surging to more than Dh285 billion ($77.5 billion) through 69,000 real estate transactions, said the annual transactions report released by the Dubai Land Department (DLD) recently.

The figures were up six% in terms of number, and four% in terms of value when compared to Dh275.8 billion for 2015, and increased by 14% in number, and six% in value compared to Dh269 billion for 2016, stated the report, which summarizes the market activity over the past year.

Commenting on the report, Sultan Butti bin Mejren, the director general of DLD, said: “The figures disclosed in the report for total transactions including sales, mortgages and others, confirm the current strength of the Dubai real estate market, in particular when compared against the past two years - 2015 and 2016.”

“The 2017 report sends reassuring messages of renewed cycles of growth in the coming years, especially when we take into account the modern-day infrastructure that exists in Dubai,” remarked Bin Mejren.

“The numbers and figures contained in the report confirm the strength of the Dubai real estate market and its ability to grow from year to year. Among the positive signs of the report is the lead UAE nationals have in investments, as well as the diversity of the investor base which reflects the attractiveness of the Dubai real estate market to global investors,” he added.

Unveiling the details, Bin Mejren said the sales of land, buildings and units in the Dubai real estate market totaled Dh114 billion through 49,000 transactions, while mortgages for the same three categories surged to Dh138.5 billion through 15,700 transactions.

“There were approximately 4,000 other transactions valued at approximately Dh33.3 billion, where the total turnover last year was Dh285.562 billion from 69,000 transactions,” he added.

Throughout 2017, Dubai’s real estate market was a star attraction for investors from across the globe, including Gulf nationals, Arabs and foreigners, with a total of 39,480 investors making nearly 53,000 transactions worth more than Dh107 billion.

According to the DLD report, more than 9,790 GCC nationals made investments worth more than Dh37 billion through 14,381 transactions.

The Dubai real estate market attracted nearly 7,000 Arab investors who closed 8,644 real estate transactions worth over Dh14 billion.

There was also a high level activity among foreign investors throughout the year, with nearly 23,000 investors making approximately 30,000 transactions worth Dh56 billion in 2017.

According to the DLD report, a major highlight of 2017 was the solid contribution from women to real estate investment which is on a higher trajectory. Their trust in the Dubai real estate market was reflected when 11,773 women entered the market through a total of 14,316 transactions worth over Dh27 billion.

The UAE investors continued to top the list of nationalities pumping money into the Dubai real estate market with their investments surging to Dh25.307 billion followed by Indians with Dh15.6 billion investments and then the Saudis with Dh7 billion investments.

The others in the list include British investors with Dh6 billion followed by Pakistanis with Dh5 billion, and the Chinese, Jordanians, Egyptians and Canadians.

Thanks to an active investment climate, brokers too benefited from an increase in demand for Dubai’s properties and built up Dh1.77 billion for their role in completing sales of land, buildings and residential units, stated the DLD report.

Their share included Dh840 million from land sales, which came close to Dh42 billion. They also earned Dh133 million from sales of buildings, which exceeded Dh6.6 billion, and with commissions amounting to Dh794 million from sales of units worth Dh40 billion.