Dubai property sells out within hours
Loretto, located in Downtown Akoya, sold out in a single evening Photo: Damac (via The National)
If the news that Dubai is planning to build the world's first temperature-controlled city was not a conclusive sign that the emirate's property market is firmly back on track, equally extravagant new figures from the Dubai Land Department confirm it.
The emirate, which has rebounded incredibly since its financial crash, has generated more than AED113 billion ($30.7 billion) in real estate transactions in the first six months of 2014 alone, according to the DLD.
Property sales accounted for the majority (54 per cent) of deals, with 42 per cent made up by mortgage transactions.
According to property portal Bayut.com, prices have risen significantly too. The median value of studio apartments in the UAE rose 27.67 per cent in the first quarter of 2014 compared to the same period in 2014. One-bedroom apartment values climbed 33.8 per cent year-on-year, and two-bedroom apartments by an even higher 36.55 per cent. In Dubai, studio prices rose 33.42 per cent year-on-year, one bedroom apartments by 36.75 per cent and two-bedroom apartments by 34.69 per cent.
Dubai has been so inundated with demand and prices have risen so quickly that, like many cities, it has introduced added measures to cool down growth, amid worries that the market may be heading towards another bubble. Mortgage caps and fees designed to discourage speculative investment have had some impact, with sales slowing down in the second quarter of 2014 to AED52 billion, according to the DLD.
Nonetheless, interest remains extremely strong. Developer Damac Properties told The National that their latest project, made up of 300 apartments, sold out in a single night.
"The market remains bullish, with savvy investors from all over the world recognising the intrinsic investment opportunities that are abound," said Ziad El Chaar, managing director of the firm.
"Despite the scaremongering to the contrary, the Dubai property market remains at the top of its game and is driving great value to smart buyers."
Bayut.com has seen similar levels of interest.
“The return of investors’ interest is so immense in Dubai that almost every development gets gobbled by them within hours of its launch," the site told OPP Connect.
Dubailand is now increasingly sought-after by buyers, says Bayut, thanks to its proximity to the Expo 2020 site. Indeed, it has overtaken Downton Dubai to become the second most popular area on the poral. Dubai Marina was the most searched-for, with some developments in the Marina already seeing property prices exceed those of 2008.
Nontheless, Bayut notes, "the emirates are paving their way to prosperity, while keeping the delicate equilibrium of the property market intact".