Dubai’s real estate market is expected to strengthen and develop in 2017 based on the Dubai Land Department (DLD) transaction report of 2016. His Excellency Sultan Butti Bin Merjen, Director General of DLD, attests Dubai’s real estate market is in a growing phase. Bin Merjen references the infrastructure of major projects in preparation for the World Expo 2020 as one major factor boosting the market. The DLD annual report ranks Dubai’s hottest investment areas in 2016. The report highlights transaction quantity and value by location, leading investors and specific investment attractions in key areas.
GCC and Arab Investors
The DLD annual report states that 60,595 real estate transactions surpassed AED 259 billion. Investors contributed to Dubai’s real estate sector with real estate investment transactions exceeding AED 91 billion from 55,928 investors. UAE nationals lead in investment value with approximately AED 22 billion by 7,000 UAE investors. Citizens of six nationalities in the Gulf Cooperation Council(GCC)states contributed AED 35 billion among 12,768 investors. Of the GCC nationals, 3,294 Saudi Arabian investors made transactions totalling AED 8 billion. Among Arab investors outside the GCC, Egyptian investors ranked highest in investor quantity with 1,364 investors equalling a transaction value of AED 2.4 billion. Jordanian investors ranked highest in value transactions among Arab investors outside of the GCC with AED 2.5 billion among 1,331 investors.
Top Foreign Investors
Foreign investment in Dubai consist of 22,834 investors from 136 nationalities which contributed AED 44 billion in 2016. Indian nationals hold the record in investor volume and value contributing AED 12 billion in property transactions among 6,263 investors. British nationals make up 3,372 investors contributing property transactions of 5.8 billion. Pakistani investors contributed 4.4 billion among 3,372 investors. There is high investor activity from Canada, China, France, Russia, Iran and the United States.
The DLD report presented an increase in new developers along with high license demand in various categories of real estate. The Developers Registration confirmed the entry of 55 new developers into the real estate market launching 134 new projects exceeding AED 100 billion. The DLD issued 695 licenses throughout 2016. Brokerage in real estate sale led with 272 licenses followed by rental licenses at 223. High demand for licenses in various categories of real estate include real estate development, rental and property management to third parties, the purchase of land and properties, property valuation services, mortgage brokers and more.
Dubai’s top five sales areas in 2016 include Business Bay, Dubai Marina, Jebel Ali 1, Burj Khalifa and Warsan 1. The report reveals Business Bay area leads in quantity of investments with 3,508 investments valuing approximately AED 6.2 billion. Following Business Bay is Dubai Marina, Jebel Ali 1, Burj Khalifa and Warsan 1. Burj Khalifa attracted the highest value through investment with over AED 7 billion among 2,097 transactions while Dubai Marina brought in 2,937 transactions worth AED 6.3 billion. Business Bay placed third followed by Jebel Ali 1 and Warsan 1.
Seeh Shuaib ranked most attractive for investors in land sales with land transaction sale value of AED 3 billion across 1,684 transactions. Al Yafra 2, Al Yafra 3, Al Hebeya 3 and Sheikh Mohammed Bin Rashid Garden are mentioned notable land transaction investment areas. Sheikh Mohammed Bin Rashid Gardens ranked first in building sales by attracting 699 transactions valued at AED 1.8 billion. The next most attractive areas for building sales included Al Yalayis 1, Al Thunaya 4, Al Yalayis 2 and Nad Al Sheba 1.