Sales Figures Indicate That Dubai’s Real Estate Market Is Moving Towards Recovery

The total value of property transactions in Dubai reached more than AED83 billion in the first nine months of 2012, figures from the Dubai Land Department show.

‘The property transactions have become more mature and the investors are now much more aware. The market offers multiple choices and Dubai property sector showed high flexibility in dealing with investors' requirements and trends during the first nine months,’ said Sultan Butti Bin Mejrin, director general of the Dubai Land Department.

Experts believe that the emirate’s property market is on the way to recovery but the figure shows that it is still up and down. For example, land transactions in Dubai reached AED63 billion in the first half of 2012, but in the third quarter deals slowed to AED20 billion.

The transactions include sales, mortgages, mortgage portfolios, deferred sales and other transactions and first time buyers are returning to the market as prices have fallen to what is regarded as more acceptable levels well below the heights of the market in 2008 when speculators pushed values too high.

Cash sales accounted for 52% of the total transactions in the first nine months of this year while mortgages accounted for 44% of the total transactions to the value of AED36.3 billion.

The Burj Khalifa, the world's tallest building, was the most popular development with 3,305 sale transactions. In the land mortgage transactions, Al Barsha South First was the most traded areas with 203 transactions while the Burj Khalifa saw 442 apartment mortgage transactions.

Bin Mejrin also confirmed that the new Dubai Real Estate Arbitration Centre is ready to resolve property disputes using internationally recognized real estate arbitrators accredited by regional and international arbitration centres.

‘Dubai’s real estate market has become one of the most developed and sophisticated markets due to the large number of dealers and clients. Now, there is an urgent need to settle real estate disputes in a smooth and fast manner,’ he explained.

‘The new centre will enhance mutual trust between the concerned parties in the real estate market, provide real estate consultations and legal advice in terms of real estate arbitration along with providing awareness of the laws and regulations on property transactions,’ he pointed out.

‘Other benefits of the centre include easing the burden on the judiciary and the courts, settling disputes quickly and reducing the cost of lawyers and legal advisers,’ he added.

The Dubai Real Estate Arbitration Centre will include a special section of real estate reconciliation to be one of the alternative means to resolve real estate disputes and reach an amicable and fair agreement between the two parties thanks to intermediary intervention that is professional, neutral, impartial and independent.

The Royal Institution of Chartered Surveyors (RICS) has launched an initiative for Middle East markets for qualifying and training real estate personnel.