Dubai’s residential property supply has peaked this year and is expected to decelerate in the coming years, the local media reported. In the first nine months of the year, a total of 32,822 residential units in the freehold and non-freehold communities were completed in Dubai. Additionally, 13,216 units will be completed toward the end of 2019 or first quarter of 2020.
Of the 13,216 units, 11,499 are apartments, 1,018 are villas or townhouses and the remaining 699 are serviced apartments. The real estate industry’s oversupply is forcing developers to stall new launches and deliveries from 2020. The property prices have reached a seven-year low of Dh895 per square foot. According to Property Finder data, Dubai’s property market will exceed last year’s supply in both freehold and non-freehold communities.
It appears that 5,000 more units are to be launched this year compared to the numbers in 2018. Property Finder predicts that 39,000 residential units will be delivered this year on the back of 33,881 units completed in Dubai last year.
Lynnette Abad, director of data and research, Property Finder, told the local media, “Going into next year, we will start to see a shift from developers. I believe less new projects will get launched as developers will concentrate on completing their current projects and selling their large inventory of ready/completed units.”
For now, there are 59 projects in Dubai with 97 percent to 99 percent completion rate. Despite that, not all projects might be completed this year owing to project delays or oversupply in the current market.