Dubai real estate market sees boom

DUBAI – The real estate market in Dubai is expected to continue its unprecedented momentum in the otherwise dull summer season with the total value of land transactions in the emirate in the past 20 days, exceeding half a billion dirham mark in the past 20 days, a record in itself.

According to officials, the value of transactions carried out by the department in July last year was Dh333 million, while it was Dh394 million in the year 2001, Dh161 million in 2000 and Dh187 million in 1999.

Interestingly, the transactions that took place in the past three days far exceeds the total value of transactions – less than Dh200 million – conducted in August and September last year.

Going by the current trends, it is expected that the value of land transactions during the current month will easily double compared with the same month last year.

Experts said two major factors contributed to unusually busy season in the real estate market. They said the decrease in interest rates on bank deposits which drove investors and businessmen to opt for more lucrative alternatives such as real estate of stock market. This is in addition to the invasion of the mart by giant companies which started sales operations in real estate developments in fast-developing areas like Jebel Ali and Al Sofouh.

Established in 1960, the department deals with lands ownership approval, lands transactions, lands registrations and documentation.