Findings include:
• As of October 2018, Property Finder research found 33,982 residential units under construction in Dubai with a completion status of at least 65%
• Southeast and southwest parts of Dubai are seeing the most activity
Dubai: Research by Property Finder, the UAE’s pre-eminent real estate portal, has found that 21,014 residential units, comprising apartments, villas and townhouses, were completed by the third quarter of 2018.
The increased amount of completed projects is unprecedented and in the short-term the new inventory will help tenants to negotiate for more competitive rents. However, the year-on-year drop in prices due in part to the amount of additional supply and subdued demand means we can expect more price declines in 2019. This bodes well for long-term renters who will find home ownership more affordable now.
As of October 2018, there were 14,707 residential units with a 95 to 99% completion status with expected completion by the year’s end. However, only 1,187 of those units were completed by the end of 2018. The “Property Finder Trends” report estimates that the remaining 13,520 units would likely be completed in the first half of 2019.
In addition there are the projects slated for 2019 completion to add to this spillover stock. Property Finder research found 33,982 residential units under construction in Dubai with a completion status of at least 65% with completion dates scheduled throughout 2019.
Accounting for the 13,520 units that were scheduled to complete in 2018 to the figure slated for 2019 completion, 47,502 residential units are expected to be completed in 2019.
“While many believe we are in a slump and property prices will go back to pre-2016 levels, the reality is that with the considerable amount of supply already released into the market, and the upcoming supply through 2022, the prices we are experiencing today are the new normal. We can expect prices to decline further in 2019 as the market absorbs the immense amount of supply that came in 2018, and what will complete in 2019,” says Lynnette Abad, Director of Research and Data, Property Finder.
Some of 2018’s notable handovers include 3,761 apartments and serviced apartments in Business Bay. The Burj Khalifa area saw 2,015 apartments added. Additionally, 394 villas were completed in Dubai Properties’ Arabella project in Mudon. Jumeirah Village Circle saw 2,228 apartments and townhouses completed.
Overall, the southeast and southwest parts of Dubai are seeing the most activity with ongoing developments such as Reem’s Mira Oasis, which will have 1,393 units in three phases once it is complete, the “Property Finder Trends” report adds.
Remraam saw the addition of 2,641 units by Dubai Properties. Town Square by Nshama saw 231 apartments and 730 townhomes released in Hayat earlier in the year. Motor City saw the completion of 137 villas in the Casa Flores project, 136 units in Eden Apartments, 95 townhouses in Casa Familia and 269 apartments in Oia Residence.
View the full issue of Property Finder Trends.
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For media enquiries, please contact Anna Lucas Southgate at anna@propertyfinder.ae or on +971 55 115 9971
About Property Finder
Property Finder is the Middle East and North Africa’s leading real estate portal with presence in seven markets including Saudi Arabia, Egypt, Morocco and the United Arab Emirates.
The premier resource when looking to buy, sell, lease or rent, Property Finder attracts nearly 6 million unique monthly users across its mobile apps and websites, with over 2,375 registered brokers and developers.
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