Dubai values boom as investors come back
Dubai property transactions value increased by 20% during 2011 reaching AED143 billion for the year, leading industry experts to believe the market is finally getting back on track.
The Real Estate Regulatory Authority (RERA) said that sales were boosted by 6,400 new property investors who entered the market. The majority of sales were to real estate investors from the United Arab Emirates, India and the UK. Flat and villa purchases were valued at AED48 billion and AED6 billion respectively, with most buyers either of Indian, UK or Pakistani origin.
Chief executive officer of RERA Marwan bin Ghalaita said: “This is a good sign that investors are coming back. We can expect 2012 to show the same increase or stay at the same level. We are marketing the real estate environment as transparent and secure.” ‘We have 62 projects which have almost completed, which will enter the market in 2012. There are another 44 projects with a very good chance of entering the market in 2012,’bin Ghalaita added.
Despite increased activities, the property market will remain oversupplied in the short term, with some 10,700 units coming online last year and another 15,000 to 16,000 expected to be delivered in 2012. RERA expects at least a third of the 200 projects currently under construction in the emirate to be handed over within the next 12 months.
Dubai’s property market has finally shown a recovery signal after house prices had seen a significant drop of more than 60% since the global financial meltdown in 2009, as the latest data from the emirate’s real estate watchdog shows.