A quick glance at the Q1 2019 numbers indicate that falling prices show increase in hand overs and rentals in specific neighborhoods of Dubai.
Around 9,800 units were completed in the Q1 2019, the highest number handed over in a single quarter for the last few years. Major projects completed include Al Khail Heights, Bluewaters Island and Arabella townhouses in Mudon, bringing total residential stock to 530,000.
There are more than 50,000 units currently under construction and expected to be delivered by the end of 2019. Looking ahead, residential supply is expected to reach 652,000 by the end of 2021. Major future projects include Seven City in JLT, Azizi Riviera in Meydan and Al Habtoor City.
People need to remain cautious that all of these projects will be delivered on time, with delays expected on some big developments. Responding to signs of increasing over-supply, many developers have slowed their launches and changed their focus to selling unsold product and completing construction of existing inventory.
Sale prices and rentals continued to decrease over the quarter for both apartments and villas. Sale prices for apartments declined by 10% and rents by 12%, compared to the same period last year. Similarly, sale prices for villas declined by 9% and rents by 5%, compared to the same period last year. With supply exceeding demand, we expect sale prices and rents to continue to face downward pressure in 2019.
New technologies are being introduced in the real estate sector, in response to the government’s call to switch to paperless transactions. Dubai Asset Management is one of the first major developers to respond by rolling out Phase I of its “fully digital and paperless property program”. Undertaken in partnership with Smart Dubai, this initiative allows potential tenants to complete majority of the steps involved in a new lease online.
(Source: Al Bawaba)