DUBAI / Emirates Business
Despite a sustained correction in prices across nearly all communities in Dubai, developers are completing construction and handing over projects with speed, according to the ‘Property Finder Trends’ report for H1 2019.
According to data in ‘Trends’ report, a total of 20,978 residential units completed in the first half of 2019. The total comprised 14,999 apartments, 1,084 serviced apartments and 4,895 villas and townhomes.
As of July 2019, there are an additional 38,426 residential units within 152 projects that have at least an 85 percent completion status and are scheduled to be completed by the end of the year, according to Data Finder, the real estate insights and data platform under the Property Finder Group. This breaks down to 29,397 apartments, 3,387 villas/townhouses, and 5,642 serviced apartments. However, even with a high completion status, not all projects will achieve completion this year, going by previous materialisation rates, says the report findings.
Some of 2019’s notable handovers so far include the DT1 tower in Downtown Dubai which added 130 apartments, 44 villas within Al Sarfa compound by Wasl Properties in Al Sufouh, 512 villas in the Sidra Community and another 1,312 villas in the Maple I and Maple II sub-communities of Dubai Hills Estate, 48 villas in Sobha’s Hartland Estate in Mohammed Bin Rashid City and 426 apartments in Emaar’s Vida Hills. Within the master-planned community of Town Square by Nshama, there were six additional projects that were expected by the end of 2018. So far this year, 579 units in Safi Apartments and 680 additional units in Zahra Breeze were completed, and others can be expected by the end of the year.
“With a record number of units expected for the second half of the year, we can expect prices to decline further as the market continues to absorb these units. Increased residential supply bodes well for residents as they will continue to have more leeway to negotiate prices in the rental market. For the sales market, an influx of new supply, without being outstripped by demand, will continue to make the city more affordable both for residents as well as investors,” says Lynnette Abad, Director of Data and Research, Property Finder.
Notable completions that are expected for the remainder of the year are the first phase of Arabella villas, Seventh Heaven in Al Barari, Acacia apartments in Park Heights within Dubai Hills Estate, 458 townhouses in Serena, Jenna apartments in Town Square, Phase 1 and 2 of Azizi Victoria yielding 2,550 apartments in total, Wind Tower 1 and 2 in Jumeirah Lakes Towers with 620 apartments in total and three towers yielding 1,427 apartments in Al Habtoor City, said Data Finder.
Looking forward to the rest of 2019, the supply story will continue with an unprecedented amount of residential supply coming in. At the end of 2018, Data Finder found 33,982 residential units that were under construction in Dubai with a completion status of at least 65 percent and completion scheduled for 2019. Less than a few thousand of those units ended up completing by the end of 2018, and most were pushed to 2019.
With nearly 20,000 already completing in the first half of 2019, and another 38,426 with a status of 85 percent complete, the market is set for some record numbers in completions.
Overall residential stock is expected to reach 637,000 units by the end of 2020, correlating to more than a 10 percent increase in recent years. While there are concerns of supply increasing ahead of demand, a more affordable market overall would be a welcome trend for residents and investors.