$43 bln already spent on real estate in Dubai in 2016. What’s next?
Another report, issued by the Dubai Land Department, contains the overall figure of all estate purchase and sale transactions throughout the past 8 months of 2016. The figure is, neither more nor less, 158 bln AED, or $43 bln, including off-plan property sales. These intriguing statistics helps us make a rough estimate of the volume of this market and imagine the scope and the potential of such a tremendous economy sector as real estate in Dubai. Even without having to listen to tedious lectures of the analysts and annoying grumble of the brokers. Let’s agree on this bit – $43 bln in a so-called “bear market” is a significant figure. How much money will there be circulating in this market if it starts to grow?
More about sales of real esate in Dubai this year
So what do those 158 bln AED consist from?
Within the first 8 months of 2016 there were more than 38 000 transactions on the Dubai estate market. 28 077 of them were direct sales with full payment for the estate objects, totalling in 71 bln AED. Mortgages held the second place in the rating with 8482 deals and a 66 bln AED figure. All remaining types of transactions tollaed in 20.5 bln AED.
It is worth noting, that 15 493 deals with a total budget of 60.5 bln AED were stricken in June, July and August – a period, traditionally regarded as the period of “calm”.
More than $43 billion was spent on purchase of real estate in Dubai throughout the first 8 months of 2016.
The biggest number of deals was recorded in Business Bay, followed by Dubai Marina, Downtown Dubai and Warsan 1. The leaders by mortgage property purchase are Dubai Marina and Downtown Dubai.
“Actually, Dubai’s real estate has a tendency to grow despite the price fluctuations. The volumes of transactions are growing month by month, the overal activity of purchasers and sellers is increasing constantly, which inevitably leads to overall market growth, – says Sultan Butti Bin Mejren, the Dubai Land Department’s director-general. – What is more, it happened despite the usual Summer decrease in the number of transactions. It’s obviously different from the same period of the last year”.
Generally speaking, the report is clear about one thing: collective effort of the Dubai government, developers and numerous brokers managed to drive the emirate’s estate market out of stagnation. Surely it will never be the same as before, but the fact that sizeable amounts of funds are already circulating within this market, and that the financial potential of real estate in Dubai is only going to grow stronger is out of doubt.