The number of property sales in Dubai rose 53 percent year-on-year in the first quarter of 2012.
This is great news for Dubai-based property developers like The First Group, as well as prospective investors.
Official data from the Dubai Land Department (DLD) revealed a total of 654 sales of apartments, villas or townhouses between January 1 and March 31 this year. This tally represented a 53 per cent rise in volume on the tally of 426 during the same period in 2011. There was also a 32 percent rise in value to US$1.43bn.
Luxury end thrives
Growth in the market was particularly evident at the higher end of the spectrum with many villa locations selling especially well. High-end locations which saw noticeable rises included the Burj District, also known as Downtown Dubai (up 5.3 per cent), The Greens (up 4.8 per cent), The Views (up 5.2 percent) and certain higher-end developments in Dubai Marina (up 1.35 percent).
In contrast, the bottom end of the market did less well. The Government report found values of apartments in less desirable locations diminished, with Discovery Gardens and International City values down 7.8 per cent and 5.6 per cent respectively from the third quarter of 2011.
Property groups specialising in the high end of the market will be delighted by the recent data. The First Group, for example, have a number of properties that fall squarely into this category. TFG Marina Hotel, for one, boasts a superb location in the Dubai Marina area, which is one of the growth areas mentioned in the report.
The Marina has become one of the most desirable places to live in Dubai. It has waterside and sea views, as well as a lively cafe and restaurant scene. The Jumeirah Beach Walk is a stretch of al fresco dining and shopping on the seafront. One of the emirate’s best places to shop, the Dubai Marina Mall, is also on hand.
This Marina Hotel is minutes from all the beaches, retail space, cafes and restaurants. It features an exclusive Club House, rooftop pool, sun deck and state-of-the-art gymnasium. With Dubai topping the global charts in terms of hotel occupancy, it would appear to be a secure moment to invest in the city’s hotel industry. The Marina Hotel could represent a potentially lucrative opportunity to become part of Dubai’s thriving hotel industry at a time when property values are increasing.
Meanwhile, the Indians have topped the list of first-time property buyers in Dubai in 2011, having bought properties worth 2.1 billion dirhams (Rs 292 crore), according to Dubai Land Department data.
The 927 transactions by Indians were worth 2.1 billion dirhams, which was 16 per cent of the overall value of transactions. According to the department, the “new” money flowing into the Dubai property market last year totalled 13.13 billion dirhams (Rs 1,825 crore).