(MENAFN- Khaleej Times) Foreign and Arab investments in the Dubai real estate market recorded a significant upswing in the first half as the value of transactions reached Dh53 billion on the back of mounting investor confidence spurred by attractive market environment, sustained economic stability and diversification, the Government of Dubai Land Department, or LD, said on Tuesday.
Arab investors contributed Dh5 billion to the sector. - AFP
Foreign investors accounted for more than 60 per cent of the value of new investments in the first half at Dh32 billion, registering an increase of 73 per cent over the same 2012 period. Analysts were quick to point out that the trend signified continuing resurgence in global investors' confidence in Dubai's property market rebound.
LD director-general Sultan Butti bin Mejren said an increase in the volume of investors from diverse backgrounds, reflected the success of various policies and initiatives introduced by the government of Dubai throughout the year, which have had an invaluable impact on attracting investment from all over the globe who look for a safe and rewarding place to spend.
"Dubai's real estate market is a lucrative one for its stability, diversity and promise of high return on investment. These factors continue to inspire confidence in local, regional and international investors alike, whose transactions in turn contribute to sustained momentum of the market's growth - signifying complete recovery from the global financial crisis," said Bin Mejren.
He said the trend is a clear indication that the coming period would be a promising one, where the Land Department expects to see an unprecedented amount of spending.
A breakdown of the Dh53 billion in investments shows that Arab investors contributed to approximately Dh5 billion, a 111 per cent increase in spending, Gulf nationals (including those from the UAE) to over Dh16 billion, a 57 per cent increase in spending, and foreign investors with over Dh32 billion.
The LD said in a statement that citizens of the UAE ranked first among Gulf investors - most likely stemming from their familiarity with the local market and the latest opportunities for investment, with a total number of 2,765 investors making transactions worth Dh12 billion. Citizens of Saudi Arabia ranked second with 605 investors and Dh2 billion, Kuwait came in third with 141 and investments exceeding Dh360 million, followed by Qatar, Oman and Bahrain.
The report also showed that India came in first place among foreign investors with 499 transactions worth over Dh8 billion, Pakistani investors came in second place with 3,285 investors spending over Dh3 billion, followed by British investors with 2,389 and over Dh4 billion in spending.
The LD's semi-annual report also revealed a growing number of Arab investors, with Jordan taking first place with 598 spending Dh1 billion, Lebanon in second with 437 and Dh884 million, Egypt ranking third with 388 and Dh753 million invested.
Bin Mejren noted that strategies launched by the LD aimed primarily at recovery are aimed at attracting more investment to the market, by offering support to the development of mega projects and advertising lucrative investment opportunities.
The total value of real estate transactions, including mortgages, in Dubai for the first half of 2013 increased Dh108 billion on a total of 30,469 transactions compared to the same period last year.
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