Dubai real estate transactions up 20% in 2011

Total real estate transactions in Dubai rose by 20 percent in 2011 compared to the previous year, the emirate's Land Department said on Monday. Transactions reached 35,297 and were valued at around AED143bn ($38.9bn) last year in Dubai. The transactions include sales, mortgages, ijarah, mortgage portfolios, deferred sales and other transactions. Sultan Butti bin Mejrin, director general of the Land Department, said the figures for 2011 represented a 20 percent increase in the value of transactions compared to 2010. He added in a statement that the "quantity, quality and procedures reflect the recovery and growth of the real estate market in Dubai". He said the local government had "spared no effort to achieve market's stability and growth", adding that the property market had again become attractive to investors. The Land Department figures showed a 12 percent increase in mortgages compared to last year, with mortgages representing 60 percent of the total transactions conducted in 2011. "This indicates the recovery of the property financing and the return of healthy activities," the Land Department statement said. Bin Mejren added: "The total value of the transactions clearly reflect the unequivocal return of the real estate market to normal levels, the exit of speculators, the maturity of the real estate market, the increased investor awareness of the importance of long-term investment in this vital sector." He said he expected to see "strong recovery" in 2012, with investors increasing their investments in Dubai. Total transactions for apartments in Dubai last year reached 26,465 at the value of AED43bn, the figures showed, while total transactions for villas reached AED6bn.