Emiratis, Pakistanis & Chinese: The Top 10 Dubai Real Estate Investors
According to the Dubai Land Department (DLD), the overall property transaction by the 1st half of 2018 is totaled to be Dh111 Billions after completing over 27,642 Transactions. If compared to the last year 2017, this is considered to be 16% declination. Last year, the turnover by the end of 1st half was about Dh132 Billion that was quite a boost as compared to 2016 – Dh113 Billion.
This 16% reduction in property transaction is because the off-plan transactions recorded a drop. This decline in the off-plan transactions is due to a combination of some developer launches and pullback of developer incentives that used to be the rage in the last year. Moreover, the investable funds have started to relocate towards ready space. This preference of investors is penetrating as a trend in the current market. In fact, the investors are arbitraging away the difference in prices between ready and off-plan properties.
Sanjay Chimnani, managing director, Raine & Horne says, there’s been a drastic drop observed in the off-plan sales this year. In 2017, developers attempted to attract buyers with several payment plans and other incentives, which not only attracted end-users but investors also looking for a good yield. Also, this allowed them to pay over time from their regular incomes. Moreover, the secondary sales have remained consistently strong as the sellers understand economic cycles and are willing to meet the market price.
In the first 6-months, Business Bay & Dubai Marina were the most attractive places for investors having recorded with over 1,934 and 1,445 transactions – the Al Merkadh neighborhood had 1,262 deals on the other side.
It was indeed a gigantic cash flow with transactions accounting for Dh4.2 billion in Business Bay. Dubai Marina went 2nd with Dh2.9 Billion and Dh2.1 Billion worth of transactions for Al Merkadh.
Director-general of DLD Sultan Butti bin Mejren said, “The government’s decisions have had a huge impact on growth and on powering the competitiveness of the national economy. It’s time to take the most important incentives for economic growth like granting investors a UAE residency visa for up to a decade & reducing government fees included in previous initiatives. This is also going to have a great positive impact on reducing business costs & will support Dubai’s position as one of the best investment destinations in the world.”
Through mortgages, there were over 7,668 transactions financed that were worth Dh57.6 billion. Whenever you notice an increase in mortgage-back deals, it apparently means that the end-user buyers are active in the market whether it’s buying apartments near Dubai airport or getting the off plan. With regards to mortgages, Dubai Marina listed 498 transactions that are worth over Dh1.7 billion. Jebel Ali was the second having 454 transactions worth Dh769 million and the Business Bay was also quite close having 453 transactions totaling over Dh3 billion. The top 10 investors by nationality include Dubai residents from Britain, Pakistan, China, Egypt, Jordan and France.
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