Developers are expected to ramp up construction on 136 ongoing development projects in Dubai ahead of Expo 2020 to deliver at least 25 per cent more residential units this year, says a report.
Latest report compiled by Property Finder shows that at least 48,015 freehold residential units in Dubai are under construction and expected by Expo 2020. Property Finder Data & Research has found 43,882 residential units within 136 projects in Dubai to have a completion status between 85-99 per cent to date with an expected completion by the end of 2019.
Considering the historical materialisation rate of 50 per cent, one can expect a decent number of these units to reach completion by the end of this year, the report said. However, experts said up to 40,000 residential units are likely to be delivered this year compared to 29,000 handed over in 2018.
"Construction is not slowing down and projects are in full swing," Lynnette Abad, director of Research and Data, Property Finder, said.
"We are also starting to see phases of big projects near completion status, therefore we can expect to see a higher number of completed units this year compared to following years. So far to date, there has been a total of 10,670 units completed this year," she said.
Property Finder estimates 4,133 residential units within 18 projects in Dubai to have a completion status between 65-99 per cent until September 2020, a month before Expo 2020.
Cumulatively, between today and September 2020, we could see the completion of up to 48,015 residential units in Dubai. However, construction completion does not necessarily translate into handover of the homes.
Breaking down the supply figures further, apartments account for a major chunk of the upcoming inventory in 2019 at 33,548 units while villas/townhouses and serviced apartments will number around 4,612 and 5,622 units, respectively.
Developers had announced several hotel/serviced apartment projects in order to serve the expected 25 million visitors estimated to arrive in Dubai for Expo 2020. Of the estimated residential supply expected in 2020 (until September), apartments will account for 2,853 units while villas/townhouses will number around 1,280.
In the run-up to the Mena region's first Expo in 2020, several developers had launched projects in Dubai in 2016 and 2017 to cater to investor demand. Developers are going the extra mile to meet construction deadlines this year as excitement builds up for the mega event in 2020.
According to construction schedules, Jumeirah Village Circle will see the highest number of projects (23) completed from today until Expo 2020. This will be followed by Mohammed Bin Rashid City with 15 project completions. It should be noted that the master community of MBR City also includes Dubai Hills Estate and Meydan.
Dubailand and Business Bay will also see a lot of activity, with 12 projects apiece likely to be completed.
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