Developers are completing construction and handing over projects with speed ahead of Expo 2020 Dubai despite a sustained correction in prices, according to new research.
The Property Finder Trends report for the first half of 2019 showed that a total of 20,978 residential units were completed.
The total comprised 14,999 apartments, 1,084 serviced apartments and 4,895 villas and townhomes. The report also showed that, as of July, there are an additional 38,426 residential units within 152 projects that have at least an 85 percent completion status and are scheduled to be completed by the end of the year.
According to Data Finder, the real estate insights and data platform of the Property Finder Group, this breaks down to 29,397 apartments, 3,387 villas/townhouses, and 5,642 serviced apartments.
However, it added that even with a high completion status, not all projects will achieve completion this year. Overall residential stock is expected to reach 637,000 units by the end of 2020.
Some of 2019’s notable handovers so far include the DT1 tower in Downtown Dubai which added 130 apartments, 44 villas within Al Sarfa compound by Meraas in Al Sufouh, 512 villas in the Sidra Community and another 1,312 villas in the Maple I and Maple II sub-communities of Dubai Hills Estate, 48 villas in Sobha’s Hartland Estate in Mohammed Bin Rashid City and 426 apartments in Emaar’s Vida Hills.
“With a record number of units expected for the second half of the year, we can expect prices to decline further as the market continues to absorb these units. Increased residential supply bodes well for residents as they will continue to have more leeway to negotiate prices in the rental market. For the sales market, an influx of new supply, without being outstripped by demand, will continue to make the city more affordable both for residents as well as investors,” said Lynnette Abad, director of data and research, Property Finder.
Notable completions that are expected for the remainder of the year are the first phase of Arabella villas, Seventh Heaven in Al Barari, Acacia apartments in Park Heights within Dubai Hills Estate, 458 townhouses in Serena, Jenna apartments in Town Square, phase 1 and 2 of Azizi Victoria yielding 2,550 apartments in total, Wind Tower 1 and 2 in Jumeirah Lakes Towers with 620 apartments in total and three towers yielding 1,427 apartments in Al Habtoor City, according to Data Finder.