04/01/12

Dubai Property Purchases increase by 20%

In recent reports published today, Dubai property purchases have increased 20%. Despite Dubai’s purported troubled property market, these reports certainly signify a recovery in 2011, showing no signs of a slow down.

According to official figures released this week, Dubai property transactions were up 20% from the year before. Dubai Land Department (DLD) registered 35,297 transactions, including sales, mortgages, rentals and deferred sales, attributing to a total worth in excess of AED 140 billion (approx. USD $38 billion).

Gulf News reported. “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,” said Sultan Butti bin Mejrin, DLD director general.

The importance of long-term investments has been maximised with the exit of speculative investors, and with restored investor confidence, Dubai’s real estate market can only strengthen. Those who once lost confidence during the downturn have now regained footing and are once again active in the market.

These reports signify a strong recovery in 2012, reflecting the return of the real estate market to normal levels. It would be wrong to suggest we are going to see another Dubai property boom in the near future, however the worst is certainly over, and Dubai’s strong foundations continue to pave the way for stability and growth. Furthermore, Cluttons suggested the overall buzzword for the commercial, hospitality and residential markets has been ‘selective stabilization’, and a general move towards market maturity. A brisk start to business is now predicted in January 2012

Investments in Dubai commercial property are becoming increasingly attractive, with guaranteed returns, and clear exit strategies creating lower risk investments for investors. Alternative investments such as car parks are also rising in popularity, appealing to investors who require a hands-off, low entry investment.