Dubai Real Estate Market Forecast 2019

 

It’s been two years since Dubai was awash with exuberance succeeding the Expo 2020 announcement and its vast transformative effects. The city has seen VAT introduction, job losses and unstable oil prices as well as incline and decline in prices. A downturn is less likely to continue till at least beginning of 2020. 

According to the Dubai Statistics Center, the completed number of buildings in 2018 is 5,069 so far. That’s 2,202 less than last year. Some of the factors in the declination in residential sales prices are due to a soft jobs market, strong supply growth in housing, and subdued demand. 

The local real estate market has seen a substantial delay in project handovers, largely as a result of overly ambitious handover schedules and project delays. The number of delivered properties this year in the realtime is 12,370 units, with 6,170 units met the delivery time and 6,2000 overdue units delivered. The numbers and projects delay is expected to change in 2019. While 20 is the value of future projects supply – and not any overdue projects - for this year, there will be a total of 171 next year. However, the future property supply of 2018 accumulated to a value of around 6K. Next year, there’s a great value, with a total of 56k in Dubai. 

Because of the delays, a large number of units expected to be completed in 2018 will only be ready next year. According to the International Monetary Fund (IMF), the UAE’s economy to grow 3.7 % on increased government spending and higher oil prices next year. In 2019, this should be reversed to the property market in Dubai and should be expected to improve. Chinese, Saudi and local buyers are looking at affordable projects within luxury developments, which can help boost the real estate market.

The new long-term visa for expats can help boost the UAE’s population and increase expatriate incentives to purchase property and support the demand in one of Middle East’s fastest growing sectors worldwide. Additionally, 2019 will see the same level of growth due to the amount of construction leading to Expo 2020. 

Projects such as Azizi Riviera 34, Azizi Aura Residences, Azizi Riviera 34, Azizi Victoria 4, Azizi Pearl and much more from developer Azizi Developments will be handed over next year. Adding to the world-class portfolio of UAE’s real estate developer, Dubai South PropertiesThe Pulse Townhouse, The Pulse Boulevard, The Pulse Boulevard, Ruba at Arabian Ranches 3 as well as new real estate projects in Dubai from Jumeirah Golf Estates, Meydan Sobha L.L.C, Time Properties, Damac World Estate are some of the developers from a long list of off plan projects in Dubai, that will be unveiling new projects.

With more projects lined up for the city’s much touted World Expo 2020, the pace of job creation should gradually pick up. This will help push the growth and carry the Dubai market into recovery phase next year.



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