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Real estate transactions in Abu Dhabi jumps 22% to Dh19 billion in Q1 2020
Real estate transactions increased 22 percent in Abu Dhabi reaching Dh19.2 billion during first quarter of 2020 compared to Dh15.8 billion in the same period of 2019, according to the Department of Municipalities and Transport (DMT), that regulates the property sector in Abu Dhabi emirate.
Transactions for first quarter 2020 included approximately 7,600 land and real estate deals, up 5,085 year-on-year. The DMT noted that the value of real estate transactions amounted 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.
Real estate sales were distributed across land, buildings and units. Lands deals represented 56 percent of the total sales during the first quarter, worth Dh4.9 billion made through 1,224 transactions, while the share of real estate units in the total sales value during the same period totalled 44 percent with sales and were valued at Dh3.8 billion, covering 2,389 transactions.
The DMT data showed Al Reem Island has the highest value in terms of total sales, which is about Dh2 billion, followed by Saadiyat Island, which is Dh1.5 billion, the Reef region; Dh911 million, Yas Island; Dh837 million, Khalifa City; Dh259 million and Al Shamkha city; Dh234 million, while sales were distributed in various other regions in emirate of Abu Dhabi.
The value of mortgages during the period reached Dh10.5 billion with 3,943 mortgage transactions, while land comprised the vast majority of mortgages with a value of Dh10.3 billion with 98 percent of the total value, while the share of real estate units in the total value of mortgages accounted for 2 percent, equating to around Dh 200 million and 110 mortgage transactions.
The DMT exempted individuals and companies from 34 of real estate registration fees until the end of 2020 including 2 percent sale and purchase fees, 2 percent off plan sale fee and land exchange fees, mortgage registration, mortgage transfers, mortgage amendments and mortgage redemption.
Dr. Adeeb Al Afeefi, Executive Director of the Real Estate Sector at DMT, said: “This high value of real estate trading transactions can be attributed to the direction of our wise leadership and vision to promote economic development and ensure an attractive investment environment based on the Abu Dhabi Vision 2030 and the Abu Dhabi Government Accelerator’s Program ‘Ghadan 21’ and the latest economic stimulus package where DMT waives various real estate transaction fees’.”