Banks and Private Companies become the top institutional purchasers deploying Dh 100 billion for Real-Estate in UAE.
According to the data presented by JLL, a top investment management company, the total number of transactions in Dubai in the year 2017 were recorded to be over 15,600 summing up to a whopping combined value of over Dh 100 billion.
The CEO of JLL MENA, Thierry Delvaux commented on the statistics saying: “This sector has consistently grown in value each year since 2013 with transactions by institutional investors totaling around Dh85 billion.” He also added: “Our global research reveals a clear relationship between the openness and transparency of any real estate market and the level of investment attracted. Investors appreciate certainty and are therefore attracted to the most transparent markets, such as the UK, the US, and Singapore, where they can more accurately assess the levels of risk and return from any potential investment. Dubai is the most transparent real estate market in the Mena and this helps explain the high level of investment attracted relative to other cities in the region.”
At the current rate, Banks and Private Companies are the two entities with the most institutional purchases in the real-estate sector in Dubai. However, most of these institutional purchases have involved some form or kind of debt financing for their completion and most of these transactional purchases were recorded to be for ready properties rather than off plan properties. One surprising thing that has come out of this survey and analysis is that most of these institutional purchases were closed over the residential areas rather than commercial ones opposite to what has been seen as a trend with other global cities around the world.
While speaking at the ‘Dubai Real Estate Sector Profile’ forum organized by the Dubai Land Department i.e. DLD, the executive at JLL commented: “Though Dubai’s market is still dominated by individuals and private companies with less institutional investment than in more mature markets overseas, as more investment-grade real estate becomes available at reasonable price levels, the level of interest from institutional investors in Dubai will increase over the next five years.”
This forum was specifically arranged to announce the launch of the ‘Dereya’ Report as well as the annual performance report of the real estate sector in the country in 2018. This special function was graced and attended by some of most prominent and bespoke personalities of the real-estate sector in the country i.e. the Director General of Dubai Land Department Sultan Butti Bin Mejren, Majida Ali Rashid, CEO of the Real Estate Promotion and Investment Management Sector at Dubai Land Department, the Assistant Director General at Dubai Smart Office and CEO of Dubai Data Establishment , Younis Al Nasser.
The named report i.e. Dereya was a collaborative effort and was generated and initiated by the Department of Real Estate studies and research of the Real Estate Promotion and Investment Management Sector at DLD in an official collaboration with bespoke consultancy firms like JLL & Cavendish Maxwell. DLD i.e. Dubai Land Department seeks to reduce the manipulation of real estate reports and provide a range of information sources through a unified database through this thorough and in-depth report. Shedding some light on it, Al Nasser highlighted the importance of data availability to elevate the ranking of Dubai’s real estate sector in global transparency and competitiveness indices.
In addition, The Founder and Chairman of Cavendish Maxwell, Jay Grant commented on this report stating: “A young city competing on a global field for investor recognition, the Dubai real estate market has faced challenges over the years as it developed its level of understanding, initiative and maturity.” He also added: “These initiatives should attract further levels of investment from institutional investors and maintain Dubai’s position as the leading real estate market in the region.”
Hence, for such and many other latest scoops and news regarding the real-estate conditions and advancements within the country, keep following us at our official blog at www.zooma.ae and we shall stay hopeful and positive that such progressions and advancements by the authorities will keep on paving the way for the flourishing scenario of the real-estate industry in the country.