Property developers are completing the construction and delivery of residential units in record time, despite a price correction in various Dubai residential complexes, according to the Property Finder Trends report for the first half of 2019.
According to data from Trends, 20,978 housing units were completed during the first half of the year, including 14,999 apartments, 1,084 serviced apartments, 4,895 villas and townhouses.
Housing units
DataFender, the property information and data platform of Property Finder Group, has completed the completion of 38,426 housing units in 152 projects by 85% by July 2019 and is due to be completed by the end of this year.
This included 29,397 apartments, 3,387 villas and townhouses, and 5,642 serviced apartments. The results of the report revealed that the completion of all projects during 2019 will not be achieved despite the high completion rates, based on previous completion rates.
Prominent projects
Some of the landmark projects will be delivered in 2019, including the DT1 Tower in Downtown Dubai, which includes 130 apartments, 44 villas in the Meraas Al Sarfa complex in Al Sufouh, and 512 villas in Sidra. In addition to 1312 villas in the Maple 1 and Maple 2 sub-communities in Dubai Hills Estate, 48 in Shuba Hartland Estate in Mohammed bin Rashid Al Maktoum City and 426 in Vida Hills. For Emaar.
In addition, six additional projects were expected to be completed by the end of 2018 within Nashama Town Square. 579 residential units in Safi Apartments and 680 units in Zahrat Al Naseem were completed, with additional units expected to be completed by the end of 2019.
Falling prices
Lynette Abbad, research and data director at Property Finder Group, said: “Expectations are for an unprecedented number of residential units to be completed in the second half of this year, which will result in prices falling in line with market absorption. The increase in the number of available housing units will open the door to negotiate rental rates for residents. For the real estate market, an increase in the number of new apartments entering the market without an increase in demand levels will contribute to lower costs for residents and investors in the city. ”
According to the data «Data Finder», it is expected to see the completion of many projects during the second half of this year, where the first phase of the villas «Arabella», «Seventh Heaven» in the Prairie project, and apartments «Acacia» in « Park Heights, within the Dubai Hills Estate.
In addition to 458 townhouses in Serena, Jena apartments in Town Square, 2550 apartments in phases 1 and 2 of Azizi Victoria, 620 in Wind Tower 1 and 2 in Jumeirah Lakes Towers, and 1427 apartments. In three towers within Al Habtoor City.
The projection is expected to remain unchanged in 2019, with a large number of apartments entering the real estate market.Data Finder revealed at the end of 2018 that 33,982 residential units are under construction in Dubai with a completion rate of 65% The fewest are scheduled for completion in 2019. Only a few thousand of these units were completed in 2018, and delivery dates for the remaining units have been postponed to 2019.
The number of residential units is expected to reach 637,000 by the end of 2020, an increase of 10% over the previous years. In spite of the increasing levels of supply compared to demand, the trend of the market towards the provision of real estate at affordable prices will be very popular with residents and investors alike.
The market's tendency to provide affordable properties will attract investor interest.
Increasing the number of units allows dealers to negotiate lower prices and rents.