A total of 21,014 residential units, including apartments, villas and townhouses, had been completed during the third quarter of 2018 and this year the number of new homes is likely to hit 47,500, said a report by Property Finder, the UAE’s pre-eminent real estate portal.
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.
As of October 2018, there were 14,707 residential units with a 95 to 99 per cent 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 remaining 13,520 units would likely be completed in the first half of 2019, stated the “Property Finder Trends” report. 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 per cent with completion dates scheduled throughout 2019.
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Accounting for the 13,520 units that were scheduled to complete in 2018 to the figure slated for completion by the fourth quarter, 47,502 residential units are expected to be completed in 2019, it added.
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, stated the UAE portal in its report.
According to Property Finder, this bodes well for long-term renters who will find home ownership more affordable now.
"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," remarked Lynnette Abad, the director of Research and Data at Property Finder.
"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," he added.
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, said the “Property Finder Trends” report.
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, it added.
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