According to a report by Property Finder, the increasing number of residential units in Dubai will cause a steep fall in the real estate prices in Dubai.
The report states that 20,978 residential units have been completed in the first half of 2019. The rising number of residential spaces will provide more options to the customers. The customers would get the opportunity to negotiate the prices due to the large number of options they possess, which will lead to a fall in the Dubai real estate prices.
The 20,978 residential units included 14,999 apartments, 1,084 services apartments and 4,895 villas and town houses.
The number of completed residential units is expected to increase by the end of 2019. As of July, 38,426 projects which have an 85 percent completion status, are expected to be delivered by the end of 2019, due to which the market prices are expected to decline further.
The number of completed residential units is expected to reach 63,700 by the end of 2020.
A few notable residential property handovers of 2019 included DT1 tower with 130 apartments, Al Sarfa compound by Meraas with 44 villas, Sidra Community with 512 villas and the Maple I and II sub communities of Dubai Hills Estate with 1,312 villas, 48 villas in Sobha’s Hartland Estate in Mohammed Bin Rashid city and 426 apartments in Emaar’s Vida Hills.
The second half of 2019 will witness the completion of major projects such as Acacia apartments in Park Heights within Dubai Hills Estate, Jenna apartments in Town Square, Wind Tower I and I in Jumeirah Lakes Towers and Phase I and II of Azizi Victoria with 2,550 apartments.
Lynette Abad, Director of data and research at Property Finder, stated that the demand and supply proportions have been balanced in the real estate sector in Dubai due to which residential units have become more affordable to both investors and buyers.