Data collected by the Dubai Land Department shows real estate transactions surging for the emirate in the new year. Nearly 500 property deals were recorded with the land office in January and February with values 84% higher than the same period last year, thanks in part to a $96 million sale in the Marsa district. Broken down by month, January’s volume was up 94%, while February saw a 73% gain. Experts attribute the turnaround to increasing stability in the region’s real estate market and an increasing amount of activity among lenders combined with the relative safety of living in the emirate. For more on this continue reading the following article from Property Wire.
The value of real estate deals registered in Dubai have increased by 33% year on year during the first two months of 2012, while the total number of transactions surged 84%, official figures show.
A US$96 million sale in the Marsa district in January helped push up the figures, according to the latest data from the Dubai Land Department.
The figures show there were 448 deals recorded in January and February this year, a rise of 84% compared to the same period in 2011. While volume was up, values lagged behind, rising 33% to AED3.698 billion ($1.006 billion).
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An analysis of the two months showed a difference in performance. January saw volumes rise 94% year on year, while total value was down 0.9%.
By comparison, February saw volume up 73% while values surged ahead by 167%. The most popular district was Al Barsha, where there was 28 sales registered in February alone.
The city’s agents were quick to view the figures as emphasis the market was beginning to return to normality and demonstrated an upward movement.
‘Sales across Dubai are on the increase and this is due to the stabilising of the real estate market and the safety and security that living in the UAE can bring,’ said Paul Musson, manager of residential sales and leasing at Better Homes’ Barsha office.
‘Confidence is growing in favour of Dubai as other areas in the region are hit by internal disputes and an unstable future. The sales transactions are on the increase; however this is not reflected in the now flat line selling prices. This suggests that the worst is now behind us and we can look forward to a healthy recovery for end users and investors alike,’ he added.
Andrew Goodwin, director of consultancy firm DTZ said it was encouraging that volumes are up. ‘This means that there are a greater number of lenders in the market and even if values are down, these will increase in time if the trend continues,’ he explained.
This article was republished with permission from Property Wire.