A total of 62.500 residential units are expected to be completed in Dubai’s property market this year, according to Knight Frank, a residential and commercial property consultancy based in London.
According to the Knight Frank report, over the next five years, the retail stock is expected to increase by 56 percent to 5.91 million square metres in Dubai’s real estate market.
The number of residential units to be added to the Dubai property market this year will be the highest in over a decade. The last time Dubai witnessed such a huge addition to its property market was back in 2008 when a record 70,885 units were added to the market.
According to a report published in December, even though property prices in Dubai are expected to drop 11.3 percent on average this year, the market is expected to get better in 2020 as property price decline is expected to slow down. According to the media report, Dubai will see a 5 percent to 7 percent correction as demand increases.
Recently, high-end property broker Luxhabitat revealed that Dubai’s prime residential property market witnessed a growth of around 22 percent in 2019 when compared to the previous year.
The Knight Frank report also revealed that an estimated 35,171 new units were delivered in Dubai last year.
Taimur Khan, associate partner at Knight Frank Middle East told the media, “While performance in the UAE’s real estate sectors has continued to soften on average, we have begun to see the performance in certain market segments and asset grades being to fragment. More so, the introduction of a range of regulations to increase the ease of doing business and balance out supply and demand will enhance the fundamentals offerings of the UAE’s property market and in turn, enhance confidence from developers and investors.”