Dubai property deals surged by 38 per cent to top Dh61 billion in the first quarter.
The Land Department yesterday announced that the number of transactions for the quarter grew to 15,694, an 11 per cent increase on the first quarter of 2013.
The growth in the number of transactions and their value is only set to increase during the rest of the year, according to Sultan Butti Bin Mejren, the Land Department’s director general.
“The results of the first quarter 2014 reflect the renewed investor confidence in Dubai and specifically in the city’s real estate sector, which is considered an integral component of the national economy,” said Mr Bin Mejren.
“We expect the next three quarters to be similarly as active, especially as this period follows the launch of a number of stimulating economic projects in Dubai and the disclosure of some of the preparations for the city’s hosting of Expo 2020.”
Asteco last week reported that sale prices for homes in Dubai rose significantly over the quarter, with apartment prices up by 3 per cent and villa prices up 6 per cent compared with the final three months of 2013.
But some analysts have warned that the rapid appreciation of prices over the last year are unsustainable in the long term.
Such fears may be unfounded in the short term at least, with the supply of new residential units trailing behind market demand, according to Matthew Green, the head of research and consultancy at CBRE in Dubai.
"Prices and rents are getting much more expensive, but the fundamentals of the market are still strong," said Mr Green. "The supply of new units coming through in the market in the next couple of years is not sufficient to have a dampening effect on prices. In 2008 the supply pipeline was much bigger, and we haven't got near to that point yet."
As many as 38,000 residential units are forecast to be released between now and 2016, although some of the proposed projects are likely to face delays beyond that, according to JLL.
Dubai’s government last year introduced new restrictions on “flipping” properties, as well as more stringent mortgage regulations, in an attempt to prevent the real estate sector from overheating as it did in 2008.
The Government is likely to continue to closely monitor the market, said Mr Green, as sustained increases in prices and rents are likely to damage Dubai's competitiveness in the longer term.
Hibiya 3, Dubai Marina and Al Thenaya Al Rabe’a were the most attractive areas for selling land, buildings and residential units during the first quarter of the year, according to the Land Department. Al Thenaya Al Khamesa was in top place for land mortgages and Thenaya Al Rabe’a placed highest for building mortgages.
Land transactions for the quarter consisted of 11,567 sales activities worth a total of Dh31.5bn, together with 3,482 mortgage transactions worth more than Dh28bn, according to the department.
Other categories of transactions accounted for Dh1.7bn from 636 transactions, making the total value of transactions in all categories more than Dh61bn.
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Karwaan
Producer: Ronnie Screwvala
Director: Akarsh Khurana
Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar
Rating: 4/5
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
Getting there
Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes
Captain Marvel
Director: Anna Boden, Ryan Fleck
Starring: Brie Larson, Samuel L Jackson, Jude Law, Ben Mendelsohn
4/5 stars
‘FSO Safer’ - a ticking bomb
The Safer has been moored off the Yemeni coast of Ras Issa since 1988.
The Houthis have been blockading UN efforts to inspect and maintain the vessel since 2015, when the war between the group and the Yemen government, backed by the Saudi-led coalition began.
Since then, a handful of people acting as a skeleton crew, have performed rudimentary maintenance work to keep the Safer intact.
The Safer is connected to a pipeline from the oil-rich city of Marib, and was once a hub for the storage and export of crude oil.
The Safer’s environmental and humanitarian impact may extend well beyond Yemen, experts believe, into the surrounding waters of Saudi Arabia, Djibouti and Eritrea, impacting marine-life and vital infrastructure like desalination plans and fishing ports.
'Gold'
Director:Anthony Hayes
Stars:Zaf Efron, Anthony Hayes
Rating:3/5
COMPANY PROFILE
Company: Olive Gaea
Started: 2021
Co-founders: Vivek Tripathi, Jessica Scopacasa
Based: Dubai
Licensed by: Dubai World Trade Centre
Industry: Climate-Tech, Sustainability
Funding: $1.1 million
Investors: Cornerstone Venture Partners and angel investors
Number of employees: 8
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The Kingfisher Secret
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It’ll be summer in the city as car show tries to move with the times
If 2008 was the year that rocked Detroit, 2019 will be when Motor City gives its annual car extravaganza a revamp that aims to move with the times.
A major change is that this week's North American International Auto Show will be the last to be held in January, after which the event will switch to June.
The new date, organisers said, will allow exhibitors to move vehicles and activities outside the Cobo Center's halls and into other city venues, unencumbered by cold January weather, exemplified this week by snow and ice.
In a market in which trends can easily be outpaced beyond one event, the need to do so was probably exacerbated by the decision of Germany's big three carmakers – BMW, Mercedes-Benz and Audi – to skip the auto show this year.
The show has long allowed car enthusiasts to sit behind the wheel of the latest models at the start of the calendar year but a more fluid car market in an online world has made sales less seasonal.
Similarly, everyday technology seems to be catching up on those whose job it is to get behind microphones and try and tempt the visiting public into making a purchase.
Although sparkly announcers clasp iPads and outline the technical gadgetry hidden beneath bonnets, people's obsession with their own smartphones often appeared to offer a more tempting distraction.
“It's maddening,” said one such worker at Nissan's stand.
The absence of some pizzazz, as well as top marques, was also noted by patrons.
“It looks like there are a few less cars this year,” one annual attendee said of this year's exhibitors.
“I can't help but think it's easier to stay at home than to brave the snow and come here.”
