4,441 residential units completed in the first two months
Dubai’s new communities will see more homes completed this year, says the Data and Research Team at Property Finder. Established neighbourhoods will see only a few additions to their inventory.
Dubai will see over 41,000 homes completed in 2019. But, there is a gap in what is announced and what enters the market. Actual deliveries have been 40 to 50% lower than developer projections, according to JLL. This is because developers usually adjust supply to match actual demand.
- 30% of the 41,000 units under construction in Dubai are 96 to 99% complete
- Jumeirah Village Circle will see 3,408 homes completed this year, the highest in Dubai
Until the end of February, of the 41,000 units slated for completion in Dubai, 30% are 96 to 99% ready. Also, 32% of under-construction projects are 91 to 95% complete. While 29% of projects being built are 85 to 90% complete. This may result in a higher materialisation rate of projects this year.
Cost of living reduces
“As the Dubai property market matures, residents are finally seeing rents reduced to a level that is considered affordable. In turn, their cost of living is going down. Considering more than 70% of expats rent, this new supply is very much welcomed. Residents are benefiting by upgrading the community in which they reside, and the property type, for example one bedroom to two bedroom, while saving on rent at the same time.
“This is an excellent time for those who are looking to purchase property,” says Lynnette Abad, Director of Research and Data at Property Finder.
Considering more than 70% of expats rent, this new supply is very much welcomed. Residents are benefiting by upgrading the community in which they reside and the property typeLynnette Abad, Director of Research and Data at Property Finder
Dubai saw over 28,000 homes handed over last year, says Property Finder research. This has been more than the number of units handed over in the past few years.
Supply completed so far
Dubai has seen the completion of 4,441 residential units in the first two months of 2019. Of these, 4,184 were apartments and 257 were villas/townhouses, according to Property Finder research.
Jumeirah Village Circle will see the highest number of homes completed this year (3,408). It will account for 8.19% of the upcoming supply in 2019. Business Bay will see 3,152 homes completed in 2019 and account for 7.57% of the supply. Third is Dubai Sports City with 3,098 homes to be ready in 2019 and contributing to 7.44% of total supply.
Dubai Sports City will see 3,098 homes ready in 2019.
New developments such as Mohammed Bin Rashid City, Al Furjan and Town Square will each add over 2,000 homes to Dubai this year.
Other new projects like Akoya Oxygen, Mirdif Hills, Dubai South and Damac Hills will each add over 1,000 units to Dubai across 2019.
How older communities fare
Communities such as International City (512), the Palm Jumeirah (289), Dubai Motor City (276), Dubailand (188) and Jumeirah Golf Estates (95) will only contribute a small portion of the supply pie in 2019.
Bucking this trend are Downtown Dubai (1,772) and Dubai Marina (944), where considerable construction activity is still on and therefore will see more home completions.