Report Says New Housing Units Will Push Prices Further This Year
More than 20,000 residential units were completed in the first half of 2019 and more are expected in the coming months, Property Finder report says. Among the 20,978 residential units completed in the first half of 2019, there were 4,895 villas and townhouses and 1,084 serviced apartments. By July 38,426 residential units from 152 projects are under 85 percent completion status.
Lynnette Abad, Property Finder's director of data and research, said that as the market continues to accept all the completed units, buyers can expect property prices to decline for Dubai real estate. This has a positive impact on buyers since they will have more leeway to negotiate for lower prices. For the sales market, it will be beneficial for both investors and buyers since the city will be more affordable for them.
The total residential stock is expected to reach up to 637,000 units by the end of 2020, more than 10 percent increase from the recent years’ total. This latest survey was done in the midst of a continuing decline in rent and sale prices in Dubai. Another report done by Cavendish Maxwell, a property consultancy company, revealed that the average prices for apartments in the Emirate decreased by 15.1 percent during the second quarter of 2019 compared to the second quarter of 2018 when villa and townhouse prices dropped by 14.7 percent.
Some of the noteworthy handovers this year are DT1 tower in Downtown Dubai with 130 apartment units, Maple I and Maple II sub-communities of Dubai Hills Estate with 1,312 villas, and the Al Sarfa compound by Meraas in Al Sufouh with 44 villas. Sobha Hartland Estate in Mohammed Bin Rashid City also had 48 apartments and in Emaar’s Vida Hills 426.
The Town Square master-planned community built by Nshama completed 6 more developments last year. Other new projects include Seventh Heaven in Al Barari, 458 townhouses in Serena and Jenna apartments found in Town Square, the first phase of Arabella villas, and the Acacia apartments in Park Heights within Dubai Hills Estate. These are expected to be completed by the end of 2019.
Other units that are scheduled for completion this year are Phase 1 and 2 of Azizi Victoria with 2,550 apartments, three towers with 1,427 apartments in Al Habtoor City, and Wind Tower 1 and 2 in Jumeirah Lakes Towers with 620 apartment units.
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