Dubai is well known for its position as one of the most attractive destinations for real estate investment in the MENA region. The first quarter of 2016 alone saw Dh25 billion investments in the real estate sector. The real estate industry in Dubai presents many opportunities for local and international investors in the mid-term.

However, Dubai’s property market has been witnessing a downward trend in 2016. In the residential sector, sales prices rose by 1% in Q2 2016 while rental prices dropped by 1% according to JLL’s recent Q2 report. Dubai is the largest office market in the MENA region as many businesses prefer Dubai as a regional hub. Moreover, office vacancy rates showed a downward trend in the first half of 2016. Office vacancy rates in Dubai dropped from 23% to 16% year-on-year, the report added.

As of June 2016, individuals or entities from 127 different nationalities had invested in real estate in Dubai.

Top nationalities buying property in Dubai

  • Indian
  • Saudi
  • British
  • Pakistani
  • GCC Nationalities

The Dubai Land Department announced that total real estate related transactions (buying & selling) reached Dh113 billion, from 28,251 transactions in the first half of 2016.

Property transactions first half of 2016

Property sales 20,016 Dh48.7 billion
Mortgages 6,391 Dh48.3 billion
Others 1,644 Dh16 billion
Total Dh113 billion

Mortgages for land registered 2,377 transactions of Dh42.7 billion in the first half of 2016.

Land transactions

Total land transactionsDh84 billion
Land salesDh27 billion
Other land transactionsDh14 billion

In the first half of 2016, 20,699 total transactions were registered, including all buildings and units, totaling Dh28 billion. In the same period, 488 mortgages were issued for buildings valued at over Dh1 billion.

Building and unit transactions

Building sales1,125Dh3 billion
Unit sales19,033Dh24 billion
Unit mortgage3,526Dh4.5 billion

Top Areas for unit sales

Business Bay1,643Dh2.349 billion
Dubai Marina1,392Dh2.893 billion
Warsan 1999Dh454 million

The most attractive areas for investors (H1 2016)

Seeh Shuaib1,227Dh2.3 billion
Sheikh Mohammed Bin Rashid Gardens406Dh1.971 billion
Al Yafra 3387Dh622 million