Dubai recorded Dh106 billion worth of real estate transactions in the first five months of 2019, up 12 per cent compared to the same period last year, Dubai Land Department (DLD) said in a report on Tuesday.
The first five months also saw the launch of 48 new real estate projects, which are expected to add 8,000 new residential units with a total area exceeding 730,000 square metres.
For 2018, Dubai witnessed around 53,000 transactions worth Dh223bn, Dubai Land Department said in its newly-published annual report. In 2017, the transaction value was Dh284bn and number of transactions were 69,044.
The report also said more than 31,000 investors from around the world invested in Dubai’s property sector in 2018. The percentage of individual investors decreased to 59.8 per cent in 2018, from 62.8 per cent in 2017, while the percentage of corporate investors increased to 40.2 per cent in 2018, from from 37.2 per cent a year earlier.
“This increase reflects the ability of the real estate sector to provide investment options that attract corporate investors and effectively contribute in providing huge real estate investments in the sector,” DLD said.
Individual investors from the UAE ranked first in terms of the value of real estate investments made last year, with investments worth over Dh10bn. Indians came second with investments worth over Dh8bn.
The Business Bay area ranked first in terms of the number of real estate transactions with over 4,000 deals. It also maintained its first position in transaction values, with over Dh11bn of deals.
In terms of real estate projects activity, the DLD said 62 porjects were completed, with 74 per cent comprising buildings, villas 15 per cent, and villa complexes 11 per cent. Last year also saw the launch of 84 new projects comprising 20,000 units across villas, buildings and land plots.
The real estate sector contributed 7.2 per cent of Dubai's GDP in 2018, compared to 6.9 per cent in 2017 and 6.8 per cent in 2016, while the construction sector’s contribution to the GDP reached 6.4 per cent in 2018 compared to 6.2 per cent in both 2017 and 2016, the report said.
The UAE property market slowed after the 2014 drop in oil prices, with tenants and buyers seeking more affordable options. The fall in residential sales and rental prices has slowed this year and some analysts are predicting a market recovery as government initiatives such as a Dh50bn three-year economic stimulus package and a new long-term visa system, offering residency of up to 10 years to specialists in technical fields, are expected to contribute to the recovery of the real estate market.
Earlier this month, Dubai formed a higher committee for real estate, headed by a Deputy Ruler Sheikh Maktoum bin Mohammed and senior property developers. It will look at restoring balance between supply and demand in the sector.