subject: Dubai Property Sales Surge By 84 Per Cent [print this page] Dubai property sales have risen steeply year-on-year in the first two months of 2012, according to official figures from the Dubai Land Department (DLD).
The latest figures showed that 448 deals were concluded in January and February, which was an 84% rise on the same period in 2011. The values of sales rose by 33% to US$1.006 billion.
The DLL figures show that confidence has returned to the Dubai market, especially as other areas in the Middle East face instability.
Diverse performance
The first two months of 2012 performed quite differently. In January, volumes rose 94% year on year, while total value was down 0.9%. But in February volume rose 73% but values shot up by 167%. The most popular district was Al Barsha, which saw 28 sales registered in February.
The resurgence of the Dubai market is encouraging for property investors. News that the market is buoyant should spark interest in the many new hotel developments, such as The First Group's two prestigious hotel apartment projects in Tecom, Metro Central and Grand Central. These developments are strategically situated in the bustling business district of Tecom in the heart of "New Dubai".
A recent report from real estate firm Cluttons confirmed that the Dubai residential property market was "now more secure and transparent", with sales building on "a positive start to 2012".
Continued trend from 2011
In its analysis, Cluttons said the figures for the first two months of 2012 were not an anomaly, but continued a trend which had begun in the last quarter of 2011. According to DLL statistics, the number of sales in the fourth quarter of 2011 reached 2,605 compared to 1,589 in the third quarter, representing an increase of 64% quarter on quarter.
The demand for property in Dubai is not universal, however. Not all areas are doing equally well and it is the luxury end of the market which is particularly dynamic. Estate agents expect demand for the premium properties to increase.
This was already evident in 2011 when the luxury section of the market soared 17.6 per cent. Well-managed villas and apartments in good locations built by reputable developers, such as The First One, will thrive.
By contrast, many estate agents are predicting that the poorer level of properties will struggle to sell and the bottom end of the market will stagnate. There is an obvious message here for investors looking at the Dubai property market.
Stock market feeds off confidence
The dynamism in Dubai's property sector has also been reflected in the emirate's stock market, which reached its highest level in over a year at the start of March. The Dubai Financial Market General Index has risen by around 30% in 2012 so far.
Following this strong market performance, estimates on the emirates' growth have been revised upwards from 3% growth to 4.5% in 2012 according to Sheikh Ahmad Bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee.
A further indication of the attractiveness of the Dubai market overseas came in a British survey for the property website primelocation.com. According to the website's chart of the top property destinations for overseas homes, searches run by UK residents on property in the UAE increased by 47 per cent in the last quarter of 2011. This compared was far higher than many popular destinations for the British, such as Spain and Cyprus, which were both down by 15 per cent.
