Foreign investors pump Dh22 billion in Dubai real estate during H1 2012

Dubai, Aug 15, 2012 (WAM) - The Real Estate Investment Promotion and Management Centre at the Dubai Land Department (LD) announced that the total value of direct foreign investments in the emirate's real estate sector exceeded Dh22 billion, mainly pumped by foreign investors of various nationalities to buy 12,875 properties including buildings, lands, apartments and residential villas during the first half of 2012. "The real estate sector performance is moving from strength to strength over the past two years. The market has been attracting more foreign investors, which reflects the solid national economy and its excellent growth potentials," Majida Ali Rashid, Chairwoman of the Real Estate Investment Promotion and Management Centre. She added that the increased investor confidence in Dubai properties and the growth of deals and transactions in terms of quality and quantity represent positive indicators for further growth, which the government of Dubai is seeking and nurturing to secure a better future for the country and its citizens. Ms. Rashid highlighted that the information gained from the research and study section of the real estate development department show that foreign investors' purchases in freehold projects in Dubai are still dominated by Indians who claimed the first spot since foreign ownership regulations were applied. Indian investors have bought a total of 2,153 properties valued at Dh 3.751 billion, while Pakistanis came second with a total of 1,814 properties at Dh1.713 billion. She further explained that British investors bought a total of 1,564 properties worth Dh2,529 billion, ranking third in terms of the number of purchased units, while Russian and Iranian investors competed for the fourth and fifth positions, with Iranians buying 1,057 properties worth Dh1,515 billion while Russian bought 694 properties at a total value of Dh1,438 billion. Saudi investors came sixth in terms of property ownership in Dubai, as they bought 416 units in the first half of the year, worth Dh1,059 billion, followed by American investors who claimed the seventh position with 415 properties valued at Dh694 million. Canadians came eighth as they bought 329 properties worth Dh754 million. According to official records, Jordanian investors purchased 268 properties worth Dh460 million, while investors from other nationalities bought a total of 4,165 properties valued at Dh8,234 billion. Sultan Al Akraf, senior director of the real estate registration services at the department, said that the figures recorded at the department reflect an ongoing upside trend and a positive growth in the real estate market performance in the emirate, which receives direct support from the government that exerts all possible efforts to ensure market stability and growth to attract more investors and boost their confidence. He pointed out that the total value of real estate transactions has exceeded Dh63 billion during the first half of the current year, representing a 21% growth over the same period in 2011. The officially documented results have been achieved through 18,953 transactions, most of which covering sale and mortgage deals, as well as a limited number of lease and mortgage portfolios and other transactions. He concluded that the figures clearly show that the sector is back to normal with speculators exiting the maturing market, while investors showed more awareness of the importance of long term investment in real estate. – Emirates News Agency, WAM