(MENAFN - Khaleej Times) Value of transactions jumped by 53% to Dh236b in 2013 against Dh154b in 2012
Property buying activity in Dubai is expected to witness significant growth in 2014 after registering a more than 50 per cent jump in the number of transactions and their values in 2013, a top government official says.
Dubai's ideal environment and safe haven status attracted a large number of property investors in 2013 as transactions increased by more than 52 per cent to 63,652 in contrast to 41,767 transactions in 2012, according to the latest data released by the Government of Dubai Land Department on Saturday.
Value of transactions jumped by 53 per cent to Dh236 billion last year, compared to Dh154 billion in 2012. Values of property transactions increased to Dh128 billion in the second half of 2013, as against Dh108 billion recorded in the first six months of last year.
"The transaction figures for 2013 reveal a high level of optimism currently prevailing in the real estate market. These can be attributed to the new regulations and procedures issued during the past year, which have contributed to the strengthening of trust and confidence between the various categories of investor," Dubai Land Department director-general Sultan Butti bin Merjen said in a statement to Khaleej Times.
Last year was very important for property sector in the UAE and particularly in Dubai as the UAE Central Bank introduced new mortgage rules and fixed different lending limits for UAE nationals and expatriates to deal with speculation in property market and avert the situation like 2008 when property prices fell more than 50 per cent in the wake of global financial crisis.
The Dubai Land Department (DLD) also took measures to curb any price speculation and doubled the property registration fees from two to four per cent in the last quarter of 2013. Soon after the announcement the department witnessed all-time record transactions of it's 50-year history that crossed Dh11 billion mark.
All these measures were adopted to deal with any drastic increase in property prices and stop speculative activity as property prices increased by more than 20 per cent in 2013 and expected increase further this year. But the head of DLD revealed recently that the increase in realty prices was much higher that estimated by different stakeholders in the emirate.
"We are anticipating a further rise in the growth index this year, boosted by Dubai's winning bid to host World Expo 2020," Bin Merjen said.
A financial report issued by the Real Estate Sector Development Department, recorded Dh166 billion worth of land mortgages and sales and Dh62 billion of housing unit mortgages and sales for 2013.
Bin Mejren also indicated that the department is reviewing off-place transactions and may introduce new regulations in the second or third quarter.
DLD's report revealed that sales accounted for half of the total value of transactions at 50 per cent, with the share of mortgages at 46 per cent, leaving all remaining operations at only four per cent of total activity.