‘Recovered real estate’ on repeat
Kipp jumps on the recovered-real-estate bandwagon as we tell you about the 21 percent increase in land transactions Dubai has enjoyed over the past six months alone.
August 7, 2012 3:01 by Eva Fernandes
If you were tired of reading those redundant reports about just how ‘terribly cursed’ the UAE real estate market was over the past three to four years, then chances are you must be growing rather weary of the on-going constant coverage of the ‘recovering’ real estate market here in the UAE. Everybody wants to get on the bandwagon to mark the comeback of one of the worst hit sectors and well, Kipp is no different.
After publishing an article titled ‘Dubai’s real estate no longer needs a wheelchair?’ a mere five days ago, we are back to write about the spectacular increase in land transactions after the Dubai Land Department released statistics for the first half of the year. How spectacular, you ask? Well how does a whopping 21 percent increase in transactions sound?
According to the report, 47 percent of the transactions comprised of mortgages and 49 percent included sales.
Sultan Butti Bin Mejrin, Director General of the Dubai Land Department told Gulf News “The department’s transactions for the first half of 2012 reached 18,953, on an average of 133 transactions per day and 16 transactions per hour, including sales, mortgages, ijarah (online registration fee), mortgage portfolios, deferred sales and other transactions.”
But don’t just take dear old Sultan Mejrin’s word for it. When Kipp spoke to Deepak Jain, Head of Strategic Consulting, MENA at Jones Lang LaSalle he told us things were looking pretty good: “On a market wide level, there will be downward pressure on average pricing due to the amount of vacant stock in non-prime locations. For prime locations, we have seen upward pressure on pricing over the last 12 months in the 5-10% range. Generally, the market is in better shape than 12 months ago.”
And the change is being represented in the stock markets. Earlier today The National reported that Emaar Properties added 0.8 per cent to Dh3.45. Emaar has been enjoying a good summer, why just last week the company boasted a 45 percent increase in quarterly net income to the tune of a good Dh614 million.
So over all a pretty good summer for real estate-investor confidence is definitely looking up and the real estate market is slowly recovering. In fact, Kipp is quite certain if things keep up with the way they are, then very soon you shall have to look forward to those dreaded articles about ‘the recovered real estate market.’ You are welcome.