The report further revealed that around 67 percent of the transactions were for secondary properties whereas, around 33 percent were for off-plan properties. Around 10.3 percent of all sales in the villas/townhouses sector were reported Nad al Sheba, followed by Dubai Hills Estate with 8.3 percent, Green Community with 8 percent, Arabian Ranches with 4.7 percent and Dubailand with 4 percent.

Dubai’s real estate sector recorded around 51,414 sales transaction worth Dh175 billion in 2020 despite the coronavirus pandemic and economic uncertainties, according to a report by the Dubai Land Department (DLD). During the period, Dubai attracted 31,648 new investors and investments worth over Dh73.2 billion.

Sultan Butti bin Mejren, Director General of DLD told the media, “Dubai’s robust investment environment and its ability to adapt to various circumstances, guided by the leadership’s strategic vision to strengthen the capabilities of the emirate’s real estate sector.”

The 51,414 transactions recorded in 2020 validate the success of the government incentive packages that enhanced the market’s attractiveness and provided several opportunities for investors and developers who were keen to continue construction and deliver projects accordingly.”

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The report further revealed that around 11,000 real estate mortgage transactions were completed during the period amounting to Dh44 million. Lands and buildings made up the majority of these transactions, with a value of Dh 42.5 billion, accounting for 96.8 percent of the total value of mortgages made through 7,730 deals. While Khalifa City has the highest value in terms of total sales followed by Yas Islands and Al Reem Island in second and third respectively.

Recently, it was also reported that Dubai’s real estate sector recorded around 51,414 sales transactions worth Dh175 billion in 2020 despite the coronavirus pandemic and economic uncertainties, according to a report by the Dubai Land Department (DLD). During the period, Dubai attracted 31,648 new investors and investments worth over Dh73.2 billion.

Sultan Butti bin Mejren, Director General of DLD told the media, “Dubai’s robust investment environment and its ability to adapt to various circumstances, guided by the leadership’s strategic vision to strengthen the capabilities of the emirate’s real estate sector.

The 51,414 transactions recorded in 2020 validate the success of the government incentive packages that enhanced the market’s attractiveness and provided several opportunities for investors and developers who were keen to continue construction and deliver projects accordingly.”

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The report said that businesses in Dubai are looking to take advantage of weaker market conditions to upgrade their occupational space, however, they are also being mindful of increasing total spending amid these difficult times.

In its Dubai Office Market Update for Q3 2020 report, Knight Frank further revealed that Grade A and Citywide rents plunged by 6.1 percent and 7.7 percent respectively during the same period.

Real estate sales transactions in August 2020 jumped 16.7 percent to reach $1.3 billion compared to the same period last year, according to Mo’asher, Dubai’s official sales price index, launched by Dubai Land Department (DLD), in cooperation with Property Finder.

During the period, the Dubai Land Department recorded 2,480 sales transactions with 31.5 percent in the off-plan segment and 68.5 percent in the secondary segment.

Dubai’s real estate sector witnessed the completion of around 14000 residential units during the first six months of this year, despite the Covid-19 crisis. This is about 30 percent of the units that are scheduled to be handed over in 2020.

According to ValuStrat Price Index (VPI) report, second-quarter residential home sales transactions accounted to 4,459 units, down 48.8 percent quarter-on-quarter and 39.3 percent year-on-year with a value of Dh7 billion and an average ticket size of Dh1.57 million.

The sector also recorded its best quarterly performance in six in the first quarter.

The post Average office rents in Dubai fall 6.5% in Q3: Knight Frank appeared first on International Finance.

The Dubai real estate development committee comprises the General Secretariat of the Dubai Executive Council, Dubai Land Department and semi-government development companies such as Investment Corporation of Dubai, Wasl Properties, Dubai Properties, Emaar, Meraas, Nshama, Nakheel, Meydan, Dubai Silicon Oasis Authority, Dubai South and Dubai Multi Commodities Centre.

The Dubai real estate development committee will focus on developing a strategy to increase competitiveness in the real estate sector  — making it significant to Dubai’s economy. 

Prime Minister of the United Arab Emirates and ruler of the Emirate of Dubai Shaikh Mohammed Bin Rashid Al Maktoum  on his official Twitter page, said, “We instructed Shaikh Maktoum to ensure that semi-government real estate companies do not compete with private investors and to develop a comprehensive strategic plan and vision for all major real estate projects in the emirate for the next ten years.”

At first, the committee will study the sector’s situation in Dubai and assess all future real estate projects. The reason for doing so is to prevent duplication of projects in the emirate. With that, all major real estate projects will be unique. 

Also, Dubai Land Department (DLD) and Ahmad Bin Hezeem & Associates (BSA) signed a memorandum of understanding to boost local and foreign investment opportunities in Dubai. The new initiative will streamline purchase and sale of properties by corporate entities with maximum foreign ownership. This way, Dubai’s property market will be open to a large pool of corporate investors. 

DLD will be introducing a whole suite of investment products to lift the current restrictions in Dubai’s real estate laws. With that, the real estate sector  is likely to thrive on more investment opportunities in the future. 

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Majida Ali Rashid, assistant director-general at the Dubai Land Department, said: “Our real estate market is receiving heightened interest from Chinese investors, with Dubai becoming a favorite property destination.” There will be more shows planned end of this year and the next in Mumbai, Moscow and London.

Chinese have shown significant interest in Dubai real estate despite warnings about the country’s booming domestic property market in some cities. Bloomberg data reports that prices of new-homes in China has increased quickly in July, climbing 1.2% from the previous month.

The post Dubai’s real estate dipped 10% last year; downturn to continue until 2020 appeared first on International Finance.

Carol Monis, head of mortgages, MortgageMe, a financial consultancy said: “A lot of non-residents are looking to buy property in the UAE and they are looking to get a higher proportion of financing as well. Currently, banks are only offering a loan-to-value ratio of 60% to 65% on ready property for non-resident investors.

“Banks are hesitant to lend to them owing to the higher degree of risk involved. Certain banks are willing to offer 50% LTV for non-residents based on bank statements and passport copies. The documentation is also complicated as they need to fly down to Dubai to do all the paperwork and transfer.”

The mortgage law will smoothen the process for specialised funds to penetrate into the Dubai real estate market. According to David Godchaux, group chief executive officer of Core Savills, “This new regulation is expected to further integrate the real estate market with capital markets. These Reits and alternate financing avenues will support the expansion of funding channels available to developers, while also allowing higher exposure to foreign investment funds to Dubai’s real estate market and providing investors [individual/retail] liquid, diversified and smaller ticket size investment instruments.”

“This involves a 25% deposit for a ready property, 4 percent transfer fee, 2 percent broker fee, 1 percent bank processing fee, 0.25% mortgage registration fee, Dh4,000 trustee fee, and more. In short, they would have to arrange for at least 32% of the property’s value as initial costs. This should be relaxed,”Monis concluded.

“However, it may also instigate more short-term/speculative investors versus end-user buyers, that the market needs, more especially in the affordable and lower mid-market segments. Regulations allowing to distinguish between end-users and investors would be welcome to absorb the upcoming supply and work for the short term while having a positive long-term impact as well,” added Godchaux.

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“The Dubai Property Festival will catalyse the property sector of Dubai with an intensive, three-day showcase of the largest collection of real estate developments,” said Ahmad Al Matrooshi, managing director of Emaar Properties in Arabian Business. “As the pioneer of integrated master-planned communities, we are supporting the event not only as its Founding Strategic Partner but also offering a never-before incentive for our customers.
The Dubai Property Festival, organised by the Dubai Land Department’s Real Estate Investment Management and Promotion Centre, aims to showcase Dubai as one of the world’s premier property destinations by bringing together developers and other industry stakeholders.

Among the benefits offered to visitors to the Dubai Property Festival will be discounted prices, low down payments and lower registration fees from various developers, as well as free legal consultancy, no processing fees, on-site approval by banks and live auctions.

During the event, Emaar will introduce special payment plans for various developments, and will have a sales team on hand at its dedicated pavilion to help potential customers.

Among Emaar’s recent projects are the Beach Vista and Sunrise Bay in Emaar Beachfront, Saffron, a townhouse community in Emaar South, the Collective, a co-living concept in Dubai Hills Estate, and The Grand, a luxury residential address in Dubai Creek Harbour.

The post Emaar Properties offers waivers on registration fees at Dubai Property Festival appeared first on International Finance.

His Excellency Juma Bin Humaidan, deputy director general of DLD, said, “Our new e-mortgage agreement with DIB is aligned with our efforts to support Dubai’s digital transformation and provide convenient transactions for all parties. We would like to express our gratitude to DIB’s staff for their continued cooperation with us, and their support of DLD initiatives that contribute to the development of the Emirate’s real estate sector.”

Mohamed Al Nahdi, deputy CEO and chief Operating Officer at DIB, said, “Our cooperation with DLD for the new e-mortgage services is an important step for our customers. The e-mortgage agreement with DLD will help provide a more effective solution with the aim of saving our customers time and effort. As the largest Islamic bank in the UAE, DIB has played a vital role in strategic partnerships with government institutions in support of Dubai’s vision of creating a culture of innovation. As the largest mortgage provider in the UAE, DIB’s collaboration with DLD is another testament to our leadership in the banking sector and supporting Dubai’s drive for digital transformation.”

Sultan Al Akraf, senior director of the Real Estate Registration Department at DLD, added that the initiative is a new step in DLD’s efforts to deliver integrated e-services to its customers. “It reflects the vision of our leadership to spread happiness, elevate Dubai’s status as the smartest city in the world, and enhance the attractiveness of real estate investment to drive sustainable growth in the sector. At DLD, we believe in public-private sector integration, and enter into partnerships that contribute to providing the best services to our customers. The new agreement with DIB strengthens our existing partnership with the world’s leading Shariah-compliant bank, and also ensures increased customer satisfaction by providing excellent services and saving time.”

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