Figures from Dubai Land Department saw 34.1 thousand turnover transactions for ready-to-use properties recorded during the period from January to mid-November 2019, generating AED 68.8 billion worth of transactions.
Real estate investors said that the high pace of deals on ready real estate reflects confidence in the real estate sector in Dubai, noting that the market has witnessed a strong movement by individual investors and funds on the ready real estate.
In detail, the Dubai Land Department recorded 34.1 thousand transactions of ready real estate sales during the period from January to mid-November 2019, achieving transactions worth AED 68.8 billion, compared to 16 thousand «mortgage» transactions worth AED 94.4 billion.
Real estate expert Walid Al Zarouni said that the real estate market in Dubai has witnessed a strong movement on ready-made properties during the last period, reflecting confidence in the market.
He added that the price correction contributed to attracting more investors, with prices reaching attractive levels that raised the profit margin for this type of investment, as well as increasing the number of individuals with good financial solvency, as well as the entry of institutional investments by international companies, portfolios and investment funds. The Dubai real estate sector saw a good opportunity for good profitability.
Real estate expert Muhannad Al-Wadih agreed with Al Zarouni that there is a strong movement on the sales of ready-made properties in the recent period. He said that most of the real estate developers started to move based on the market movement, and the trends of the real estate investor, and change in behavior, which has become more inclined to ready-made property, which is reflected in the figures, as the number of transactions on ready-made properties in the past months, which gives a strong indication of the recovery of the market Real estate in Dubai is vibrant.
Al Wadiah stressed that the growth in turnover on ready-made properties reflects the strong desire of individual investors and investment funds in Dubai, considering the emirate's market to enjoy a good profit margin now. “On the institutional investment side, there is a good opportunity to generate profits from real estate investment through leasing, especially with the return on investment of Dubai real estate by a good rate, which is one of the highest global rates, ranging between 8 and 10%.”
The real estate expert, General Manager of «Royal Liwan Real Estate Company», Mohammed Hareb, that it must be differentiated between two types of investments, investment in ready-made real estate needs good solvency, and purchases are negotiable, the owner has the desire to Achieving profits and seizing opportunities, as well as short-term profits. The investment in real estate on the plan, requires patience and vision in the prospect of the future, as it does not require large payments, a suitable investment for the novice investor.
He pointed out that the real estate market at the moment is the first quality market of investors, who are good at seizing the opportunities, especially with the high return on investment in real estate in Dubai in the recent period.
Ready Properties and «on the map»
Mohamed Al Turki, director of real estate at Al-Waleed Real Estate Company, said real estate developers' offers of return on investment on buying ready-made properties in their portfolios contributed to the increase in demand for ready-made properties.
He added: «The real estate market (on the map) was the dominant dealings, but with the completion of dozens of real estate projects, the market for the sale of ready-made real estate has a significant weight in front of the real estate market (on the map)», pointing out that the two methods are still in dispute.
He continued: «Despite the temptation of developers to sell their projects on the plan, or (on the map), ready-made real estate is still the most demanding in the real estate market in Dubai, with high return on investment».