Land deals to hit Dh300bn
Land transactions in Dubai are expected to touch Dh300 billion by end of this year, says Sultan Butti bin Mijrin, Director-General Land Development of the emirate adding that this indicates the property sector in Dubai is not experiencing any negative impact from the international financial crisis.
He also believes there will be no ill-effects in the near future.
Bin Mijrin told Emirates Business that the property sector was still healthy and generated business opportunities for the region and the world.
"The department has registered Dh228bn worth of transactions since the beginning of 2008 until October 12, a record growth of 115 per cent compared with the same period in 2007," he said.
"And we are just at the start of the heavy season for transactions, which begins in October and runs until the end of the year."
He expects a record transaction total of Dh300bn by the end of 2008 compared with 2007's figure of Dh175bn.
"This is a correct and realistic reflection of the whole real estate market in Dubai. The market has suffered harsh attacks lately as some have predicted a correction as a result of declining demand locally in response to the global crisis. "This has simply not happened and the market gained a lot as demand increased. This shows that talk of a decline in prices in the summer were just rumours. Some Dubai districts saw a rise in Ramadan, which is normally a slow month for transactions," said Bin Mijrin.
He said Dubai always got the best out of every situation, even unfortunate ones, thanks to its economic structure. "The profits Dubai has gained for investors as a global business centre are the reason investors rush to the emirate seeking a safe shelter for their money."
The Land Department transactions of Dh228bn between January 1 and October 12 had Dh76bn in direct sales, compared with Dh47bn in 2007. Mortgage deals amounted to Dh110bn compared with Dh58bn last year. Delayed sales - including off-plan and installment transactions - amounted to Dh32bn.
