Quality, affordability and off-plan have made the most impact on Dubai’s property sector
Dubai collected around Dh285 billion from 69,000 real estate deals last year, according to the Dubai Land Department. Of these, the sale of land, buildings and individual units amounted to Dh114 billion from 49,000 transactions, while mortgages in the same three categories reached Dh138.5 billion from 15,700 transactions.
The DLD says this reaffirms investor trust in the emirate’s property market. “Last year, the off-plan market was attractive. This shows trust in the government and the economy,” said Mahmoud Al Burai, CEO of the DLD’s Dubai Real Estate Developers Institute, at the recent launch of the Cavendish Maxwell and Property Matarotor 2017 review, which was a collaboration with the DLD. “We see a lot of directions towards affordability. We have reverse migration from other emirates to Dubai. Prices being down is good for us to bring more people to the city.”
Residential stock in Dubai was estimated to be around 491,000 units last year, according to a JLL research, with apartments accounting for more than 80 per cent and reaching approximately 403,000 units. Villas reached around 86,000 units. Key projects which were completed include Duja Tower in Trade Centre (679 units), and The Polo Residence in Meydan (598 units).
With more projects being launched and completed on schedule, the year saw tenants gaining bargaining power. “There has also been a steady rise in project completions, which has put the bargaining power firmly in the hands of tenants,” according to a report by Asteco.
