Arabian Business, 24 February 2018
Dubai Land Department chief also reveals a total of 90 projects were completed last year
A total of 90 real estate projects were completed in Dubai last year, while 150 projects worth AED82 billion ($22.3 billion) were registered, a senior official has revealed.
Dubai Land Department (DLD) confirmed that 2017 was “filled with activity”, facilitated by “a safe and transparent market environment”.
Sultan Butti bin Mejren, director general of DLD, said in a statement that there has been an “optimistic mood in market since the beginning of 2018”.
He added that there is a strong demand from developers to deposit the 20 percent escrow of the total value of the future projects they intend to launch, as it enhances investor confidence in real estate development projects.
“There is a strong coordination among all relevant government institutions including Dubai Land Department, as well as between developers and various parties in the market, to establish confidence among investors and achieve the highest degree of transparency in Dubai’s real estate market,” he said.
“All agreed and applicable procedures in the market provide reassurance to both developers and investors. They also work to limit transgressions among all parties, and prevent the emergence of any negative activities to protect the Dubai’s real estate market, especially as it has gained wide international fame by focusing on protecting the rights of all,” he added.
On Tuesday, Standard & Poor’s said a three-year downturn in Dubai’s property market will likely continue until at least 2020, citing low oil prices, the introduction of VAT and a Gulf diplomatic crisis.
A glut of housing units and weak demand were also key reasons for the decline, the credit ratings agency said in a report.
The emirate’s real estate sector has been on the slide since 2014, when crude oil prices crashed, dealing a harsh blow to many Gulf investors.
Home prices dropped more than 15 percent between then and mid-2017.The downward trajectory continued through to the end of last year, the S&P report said, with prices of residential units falling a further five to ten percent.