The total value of real estate transactions in Dubai rebounded last year, hitting AED143bn ($38.9bn), an increase of 19 per cent, according to figures from the Real Estate Regulatory Authority (Rera).
According to the chief executive of Rera, Marwan bin Galitha, property transactions rose from AED120bn in 2010, after falling from AED153bn in 2009. In 2011, the majority of transaction were land deals, making up AED94bn of the total, with apartments making up AED43bn and villas AED6bn.
Galitha said that there were about 200 real estate projects currently under construction in Dubai, with around 15-16,000 units set to be delivered in 2012, although he expects this to have limited downward impact on real estate prices as much of the new supply is already sold. “Most of these are coming from master developers, not third parties. They are under a commitment to do so as the supply is already sold,” adds Galitha.
Investment in the Dubai property market is now much more sustainable, says Galitha. “In 2007-08, it was all speculative deals and the numbers were exaggerated. Now the market is more sustainable.”
He added that last year there were 6,300 new real estate investors in Dubai registered with Rera.