Dubai is expected to see a number of new communities and projects this year. Prices have softened in the market with rental prices declined to a level that is considered affordable. And so the new supply is very much welcomed that residents are upgrading to a community and the property type while saving on rent. Despite oversupply in the market, the lower prices are attracting new buyers. Even the government's initiatives like 100% foreign ownership and the 10-year visa are what investors are looking for.
For the complete update on the market, the below is a full breakdown of property supply in Dubai’s real estate market from fäm Properties’ Real time Dubai Property Supply Q1 2019 report, covering project delivery, overdue projects, to future supply, delivered units and more.
Delivered projects/properties so far
According to fäm Properties’ Real time Dubai Property Supply report, the total number of delivered projects this year in real time is 12, while the number of delivered properties this year in real time is 2,754 as of March 30.
539 total projects that includes Azizi Riviera 48, Hayat Boulevard apartments, Jenna apartments, La Quinta, and Imperial Avenue is expected to be delivered, with a total of 189,138 to be handed over this year.
Real time Delivery Rate of 2019
24% of the projects - Olympic Park 6, The Dubai Creek Residences, and Murano Residence 1 - are due for handover this year while 76% are overdue.
In terms of properties, the number of residential units delivered is 2,754, making a total of 17% delivered.
Future supply in 2019
The future supply of projects around the end of this year will have more projects than the coming years ahead so far. 2019 will see around 219 projects. From 2020 to 2022, the number of projects supply will be approximately 96, 43 and 6 respectively.
As for future property supply, 2019 will see the highest supply of ready projects in 2019 compared to the following years. End of the year will a sum of 72,110 properties. In 2020, there will be 7,660 less than this year, totalling 64,450 property supplies.
Overdue projects/properties
Last year saw a great amount of overdue projects, but this year is predicted to be less, with a total of 37 overdue projects. This is the same when it comes to overdue properties. 2019 is slightly less, with 13,824 overdue properties in total.
Real time construction progress
Of the projects launched, 20% of them are almost completed with a greater majority is still at the first stage of construction, much alike the property progress.
Yearly launched projects/properties
The total number of projects launched/registered in 2019 is 48, being the lowest compared to the last couple of years. This also applies to this year. In 2019, January and February saw stable number of property launches, according to the report. From February to March, it has shown a great increase, from 9 to 31 number of launches to date.
Yearly delivered units
However, the yearly delivered units is much lower compared to 2016, 2017 and 2018. The amount of residential units handed over is 2,754. Some of these project names include Damac Heights, Burj Vista, Mada Residences Tower, Aseel, Arabian Ranches Samara Community, Bluewaters Residences and many more.
Top 10 areas in 2018
The top 10 areas in terms of project delivery in 2018 is Jumeirah Village Circle (JVC), Al Hebiah Third, Dubai Marina, Jabal Ali First, Business Bay, Al Thanyah Fifth, Downtown Dubai, Nadd Hessa, Wadi Al Safa 2, and Al Merkadh, in chronological order.
On the other hand, the top units delivered last year are Dubai Marina, Jumeirah Village Circle (JVC), Downtown Dubai, and Al Goze Fourth, with 4,617, 2,540, 2,012, 1,866 and 1,880 units delivered respectively.
Al Thanyah Fifth, Al Hebiah Third, Jabal Ali First, Al Hebiah Second and Nadd Hessa followed suit.
Check out the full breakdown our Real time Dubai Property Supply Report.