Real Estate transactions in Abu Dhabi rose by 34% to Dhs6.3 billion

By Rahul Vaimal, Associate Editor
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Abu Dhabi
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According to the latest statistics published by Abu Dhabi’s Department of Municipalities and Transport the value of real estate deals in Abu Dhabi rose by 34% to reach Dhs6.3 billion by the end of April 2020.

The data showed that leases contributed to 60% of the total real estate transactions in April 2020, an increase of 100% compared to the same period in 2019. The value of buying and selling operations in April 2020 reached about Dhs2.5 billion compared to Dhs2.8 billion during the same period last year.

Dr Adeeb Alafeefi,
MD, Real Estate Sector – DMT

“Based on the directives of the wise leadership to support the business sectors during these exceptional circumstances, Abu Dhabi real estate market has maintained its vitality, position and excellence despite these unprecedented repercussions caused by the novel coronavirus (Covid-19) on the global economy and its repercussions on real estate markets around the world.”

Dr. Alafeefi added: “The incentive plans launched by the UAE government and the economic support plan of the central bank along with the economic incentives package launched by of Abu Dhabi Executive Council, according to which the Department of Municipalities and Transport has exempted individuals and companies from 34 of real estate registration fees until end of this year 2020, all contributed to providing sufficient flexibility and helping the real estate market in Abu Dhabi to respond to the current circumstances and continue its growth and maintain the momentum of its transactions.”

“The capabilities of the real estate market in Abu Dhabi enable it to overcome these circumstances during the coming period. It also has all the aspects that enable it to benefit much more than other markets with the start of the global economic recovery. We hope that during the next few months, the real estate market will witness an increase in the transactions based on the supportive decisions taken by the Department in this field,” Dr. Alafeefi pointed out.

The Department of Municipalities and Transportation exclusions include 2% of the sale contract, 2% fees of sale on the plan, in addition to other fees such as land exchange fees, mortgage registration, mortgage transfer, mortgage amendment and mortgage redemption.

The total real estate transactions in Abu Dhabi are expanded by 22% in the first quarter of this year to reach Dhs19.2 billion, as opposed to about Dhs15.8 billion during the same period last year.

Abu Dhabi has recorded a visible improvement in the total value of real estate transactions in the emirate for the first three months which increased to Dhs19.2 billion ($5.22 billion), up 22 percent over the last year’s figures of Dhs15.8 billion ($4.3 billion).

Announcing the record Q1 deals, the Department of Municipalities and Transport (DMT) said the value of these real estate transactions grew to around Dh8.7 billion, comprising 3,613 transactions, while the value of mortgages surpassed Dh10.5 billion, involving 3,943 transactions.