Cash is King: 80% of Dubai flats bought in cash

Over 80 per cent of the apartments purchased in Dubai during the first half of 2013 were through cash payments, official data reveals.

Total value of unit transactions reached Dh28.8 billion during the first half, with Dh23.2 billion being cash transactions, Dh4.7 billion mortgage transactions and Dh849 million in other transactions, Dubai Land Department (DLD) said on Wednesday.

Dubai Marina took the top spot in apartment sales. Total sale were worth Dh6.6 billion with over 3,748 transactions.

Overall, the total value of property transactions in the emirate rose by over 30 per cent to reach Dh108 billion compared to Dh80 billion registered in first half 2012, Dubai Land Department (DLD) figures reveal.

The statement released last year put the figure at Dh63 billion during the H1 2012. However, informed sources told Emirates 24l7 that the figure had been later updated to over Dh80 billion.

Total number of transactions reached 30,469, a 30 per cent increase compared to same period last year.

DLD data reveals total sales transactions reached 22,748 worth Dh52.8 billion in the first half 2013; mortgages accounted for Dh51.3 billion while other transactions were worth Dh4.3 billion.

Total number of land transactions for the same period reached Dh75 billion. In terms of land transactions, there was Dh27.1 billion sales transactions, Dh45.4 billion mortgage transactions and Dh2.5 billion other transactions.

As for buildings, total value was Dh4.6 billion, which included 936 sales transactions valued at Dh2.4 billion, mortgage transactions were valued at Dh1.2 billion and Dh985 million for other transactions.

Al Thenaya Al Khamesa, comprising Jumeirah Lakes Towers and other areas, topped in terms of land transactions and value. The area saw Dh3 billion through 738 sales and mortgages reaching Dh1 billion with 318 transactions.

As for buildings, Al Thenaya Al Rabe’a topped the region in terms of the number and value of transactions, both in terms of sales and foreclosures, which accounted for 432 sales worth Dh842 million, coupled with 183 mortgages worth Dh50 million.

Sultan Bin Mejren, Director-General, DLD, said: "The high percentage of growth reflects ongoing real estate developments in the emirate that continue to attract local and international investors to Dubai.”

He stressed that the real estate market in Dubai continues to provide an ideal environment for investment in terms of durability, flexibility and transparency.

According to DLD, the price index has shown an upward trend over the past few months as a result of increasing demand to purchase land, villas and apartments for projects in Dubai.

“As market recovery continues to unfold in the upcoming period, which has been backed by the increase in commercial and residential rent prices, investors will be encouraged to increase their spending in Dubai,” Mejren said.

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