Dubai exceeds AED 267 billion real estate transactions in 2015
Based on the annual report by Dubai Land Department, real estate transactions have surpassed AED 267 billion in value. In comparison to 2014, there was an 8 percent increase in Dubai transactions. Other findings included:
- The total value of sales reached AED 130 billion, crossing 48,000 transactions.
- The total value of mortgages reached AED 117 billion, crossing 12,000 transactions.
- Business bay was recorded as the top most area for unit sales with 3,212 transactions followed by Al Hebiya 4 and Dubai Marina.
- Dubai Marina was the top destination for mortgage transactions.
VAT: Up to AED 12 billion revenue expected
According to Ministry of Finance official, Younis Haji Al Khoori, upon the introduction of VAT, the UAE is estimated to generate anywhere between AED 10 billion to AED 12 billion in revenues during the first year. Also, Value-added Tax (VAT) is expected to be implemented by 2018, once GCC states decide on an implementation policy.
Sharjah rents on the rise
According to Emirates 24/7, Sharjah residents are facing rent increase upon renewal of their contracts of up to 17 percent. According to Sharjah rules and regulations, rents are not allowed to increase within the first three years and can only be increased when the contract expires. Residents can also file a complaint in case they feel the rent increase isn’t justified.
[Related: Guide to buying property in Sharjah]
Are UAE banks prepared for tough times ahead?
As reported by Standard & Poor, as oil prices drop, UAE banks are tightening their liquidity in 2016 due to weak bank deposits. Other factors also affecting UAE banks include increase in interest rates and reduction of credit. However based on their report, a few banks are prepared for the coming year regardless of a decline in government spending and slower economic growth. Such banks include NBAD, Sharjah Islamic Bank, Abu Dhabi Commercial Bank, National Bank of Fujairah and Mashreq Bank.