230 Dubai property deals a day add up to Dh44bn for 2013

Investors are rushing to close transactions on Dubai property, the latest figures show, as the number of deals done this year surges.

Jones Lang LaSalle said this month that 40,000 homes would come on line in Dubai over the next two years. Sarah Dea / The National

The Dubai Land Department closed more than 230 transactions a day in the first quarter as the value of property deals surged 63 per cent from a year earlier.

Transaction volumes increased to a value of Dh44 billion in the first quarter, amid renewed demand for land, villas and apartments for "distinguished projects" in the emirate.

The past three months revealed "a new breed of investor entering the market to capitalise on opportunities", said Sultan bin Mejren, the director general at the authority. The breakdown shows Dh24bn worth of activity on sales transactions, Dh17.8bn on mortgages and Dh2.2bn on foreclosures and other transactions.

The results shed light on a rising perception that Dubai's market is gaining traction, with developers and investors taking a second glance at stalled projects following the property crisis in 2009.

Jones Lang LaSalle said this month that 40,000 homes would come on line in the emirate over the next two years.

The consulting firm said 28,000 units were expected to be finished this year. About 2,200 units, which are residential apartments, have already had keys delivered in the first quarter of this year. The properties include the Spirit Towers in Dubai Sports City, Lakeside Tower in Jumeirah Lakes Towers and Bay Central in Dubai Marina.

Separately, Dubai-based Emirates Airline last week revealed plans to develop five residential towers in the Dubai Silicon Oasis free-zone area to accommodate its increasing number of cabin crew.

According to the contract terms, Emirates will build five towers spanning 21,500 square metres.

The rapid recovery in the emirate's property market has taken many tenants by surprise after enjoying nearly four years of falling or static rents in most locations throughout Dubai.

Some residents have started moving out of prime locations, such as Emirates Living, The Palm and Arabian Ranches, because of rising costs.

"We are definitely seeing a movement from some tenants based in the Springs, the Lakes and the Meadows or on the Palm who have had the talk with their landlord and thought actually we can't afford to pay another Dh20,000 or whatever," Mario Volpi, the sales and leasing manager at Cluttons' Dubai office, said in February.