Race to the finish! As 2018 came to an end, a number of residential projects were completed. An additional 1,145 units were completed in the last month. For transferred sales, International City, Business Bay and Mohammed Bin Rashid City topped the list in December. Despite overall declining property prices, there are many communities in Dubai that outperform most global yields such as International City, which has an average 9.9% gross yield and IMPZ, at 8.7%.
Newly completed residential supply for December saw 482 villas added to the communities in Nad Al Sheba. Additionally, Dubailand and IMPZ added 203 and 128 apartments, respectively, to their ever-growing roster.
Newly Completed Residential Supply
Property Finder research calculated that 14,707 residential units had a completion status of at least 95% in October 2018 and were expected by the end of the year. However, of that figure, only 2,792 have been completed, pushing the remainder of that expected supply for 2019 completion.
Completion in 2018
Looking forward to 2019, projects with a 65%+ completion status and a 2019 completion date amount to 33,982 residential units.
2019 is going to be an interesting year when it comes to completion of projects and new supply,” says Lynnette Abad Director, Research & Data. “As we have seen this year, the amount of total new completed supply has increased by about 30% compared to the last few years where new supply hovered in the 15,000 range each year. Also, the materialization rate increased in 2018 which we are expecting to see again in 2019 due to continued pressure to have projects completed gearing up towards 2020.
Ajman also saw the addition of 1,139 apartments on the corniche. It is actually the emirate that provides the highest yields in the UAE at an average of 8.4% for apartments.
Off-plan transferred sales for apartments, villas and townhouses amounted to 1,412 for the last month of the year. The secondary market saw 1,123 residential property sales and 62 commercial property sales for December.
2018 Off-plan, Secondary, and Commercial Sales
Our proprietary data highlights the demand side of the picture which indicates Dubai Marina and Downtown Dubai, as the top searched communities in Dubai, considering buy and rent searches for all property types.
Abu Dhabi’s most searched communities were Al Reem Island and Khalifa City. For the Northern Emirates, Ajman Downtown and Al Majaz, Sharjah topped the list with the former being the focus of both one and two bedroom searches.
*Data based on asking prices from the last 3 months for both apartments and villas.