Picture used for illustrative purpose only.
Gulf Today, Business Bureau
Statistics released by the Department of Municipalities and Transport on Thursday revealed that the value of real estate transactions in Abu Dhabi has been increased by 34% to reach Dhs6.3 billion by the end of last April, through 2617 real estate deals, compared to Dhs4.6 billion through 1840 deals during the same period last year.
The Department’s data indicated that mortgages acquired 60% of the total real estate transactions in April 2020, it increased by 100% during April 2020 compared to the same period in 2019 up to Dhs3.8 billion, which was made through (1170) mortgage transactions, with mortgages worth Dhs1.9 billion, through (598) mortgage transactions.
Statistics of the Department of Municipalities and Transport also showed that the value of the of buying and selling operations in April 2020 reached about Dhs2.5 billion, which was made through (1447) transactions, compared to Dhs2.8 billion during the same period last year, through (1242) transactions.
Dr Adeeb Alafeefi, Managing Director of the real estate sector in the Department of Municipalities and Transport, said: “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.”
He 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.”
He added “ 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.”
The Department of Municipalities and Transportation exemptions include 2% of 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 Data of the Department indicated that Yas Island has the highest value with total real estate transactions in April 2020 with total of about Dhs 771 million, followed by Al Reem Island with about Dhs279 million, then Saadiyat Island ranked third with about Dhs270 million, followed by Al Reef region with Dhs254 million, Al-Faqa region as the fifth with about Dhs159 million.
The total real estate transactions in Abu Dhabi are increased by 22% in the first quarter of this year to reach Dhs19.2 billion, compared to about Dhs15.8 billion during the same period last year.
Abu Dhabi has registered a sharp increase in the total value of real estate transactions in the emirate for the first three months which rose to Dhs19.2 billion ($5.22 billion), up 22 per cent 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 rose to around Dh8.7 billion, comprising 3,613 transactions, while the value of mortgages exceeded Dh10.5 billion, involving 3,943 transactions.
The increase comes despite the exceptional circumstances resulting from the spread of Covid-19 – which casts a shadow over the global economy.
The DMT had exempted individuals and companies from 34 of real estate registration fees until the end of 2020 including 2% sale and purchase fees, 2% off plan sale fee and land exchange fees, mortgage registration, mortgage transfers, mortgage amendments and mortgage redemption, it stated.
Department of Municipalities and Transportation (DMT) was established by Law No. 30 of 2019 and is the entity responsible for managing the urban planning and transport sectors, and three regional municipalities.
As the entity responsible for supporting the growth and urban development of Abu Dhabi Emirate, the DMT guides, regulates and monitors urban development activities. The expert authority improves municipal work to provide comprehensive services and creates higher living standards for residents through the supervision and management of the municipalities.
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