2019 projections:Affordability can result in more home buyers in Dubai
56,000 was the actual number of units announced for delivery this year in Dubai. Nearly 51% will be handed over by end of this year. Since 2011, the highest number of deliveries happened only in 2018 with 21,700 residential units. This year it is expected to cross 28,500 units according to Core Real Estate, Consultancy.
When compared YoY, there is a 2 per cent increase that is projected in deliveries of villas in 2019 and same per cent drop in apartment deliveries. With a new gained focus on affordability, independent housing has started to see slight traction in the market.
The majority of the deliveries are forecast in the affordable to mid-market segment in the outer areas with Dubailand and Jumeirah Village Circle and Jumeirah Village Triangle accounting for one-third of all handovers, forecasts Core.
Quoting the Annual Dubai market update by Core, “2018 was a year of landmark reforms, with the UAE government announcing a number of resident and investor-friendly initiatives. These reforms are expected to have a far-reaching positive impact on business sentiment, tourism volumes, investor profiles and the talent pool that the UAE will attract and retain. While other demand-side indicators such as GDP, population and secondary sales volumes also display steady growth, supply-side deterrents continue to impact the market - a trend expected to linger over the near term."
Albeit with caution, Edward Macura, partner at Core, said: “The market is highly occupier-friendly due to the wide variety of options now available at very competitive prices with higher levels of flexibility offered by both developers in new launches and landlords in the rental market."
Between 2017 and 2018, secondary market sales (both cash and mortgage sales) saw a 9 per cent spike, reflecting an end-user market.
(Credit: Khaleej Times)