DEVELOPERS IN DUBAI BATTLING TO FINISH AND HANDOVER PROJECTS
According to a recently published report, developers in Dubai City finished a record 20,978 apartments and house in the first six months of 2019 as they are racing to complete projects on time amid concerns over declining prices in Dubai. Completed properties consisted of 1084 service apartments, 4895 villas, and 14,999 apartments.
Increase in supply and as a consequence decrease in prices is seen by the experts as a positive sign as this will encourage people to buy more as the prices are more affordable now and as the total amount of residential properties in Dubai is anticipated to touch 637,000 marks by the end of 2020. Another positive point is that the potential owners, whether it be investors or residents, will be in a good negotiating position to get a property in the most sought over cities in the world.
“Expected increase in supply will generate spare quantity will approximately lower down the price by at least 20%,” says ShaherMousli Chairman ‘Arthur Mackenzy Properties Group.’ “Payments plan will be eased which will then motivate buyers to buy, resulting in increased sales” he added.
Another report stated that 152 projects encompassing 38,426 residential properties would come online in the current year consisting of 5,642 services apartment, 3,387 villas, and 29,397 apartments. Amongst these properties 33, 982 residential properties were in progress in the year 2018 and were scheduled to be completed in 2019 with a completion percentage of 65%.
“The developers are racing towards completing their properties before Expo 2020 which will be held in Dubai as this will be the biggest exhibition ever held in any part of the world,” said Alan James Gammon designated at a position of General Manager of Samana Developers. “Current decline in price and a surplus of properties already completed or near completion creates a golden opportunity for buyers who were previously reluctant to buy because of higher prices” he added
He further said that he foresees the market to boom once attractive payment plans are launched to cater to the increased supply in the market.
Director of data and research at Property Finder, Mr. Lynnette Abad said “Due to surplus properties available for sale buyers will have more power to negotiate and in turn, will be able to get the better house at lower prices. The prediction is that completed properties will on a record high figure at the end of the year 2019 creating more and more opportunities.”
“Dubai is big, and one of the most sought-after market in the world which has the ability to absorb the increase in supply as the UAE property market is very lucrative for potential investors as well as residents,” said Atif Rahman, partner, and director at Danube Properties.
He added that “Dubai can expect huge investments in real estate and property business in the months to come as payments plan will become lenient and more lucrative for potential residents and investors. This is also evident by the fact that Berkshire Hathaway entered the Dubai real estate market with a bang depicting the interest and seriousness of experts from around the world about Dubai’ property”.
In another statement, he said “as per expectations many of the buyers in the current market are new, this is due to the fact that many people who had stable jobs which were not previously able to afford the high priced property in Dubai are looking now to buy because of current payment plans and decreased prices. This is expected to continue and will strengthen Dubai real estate industry.”
Prominent handovers in the first half on 2019 included 130 apartments in DT1 tower in Downtown Dubai, Sobhas Hartland Estate’s 48 villas, Maple I and II’s 1312 villas and apartments, 512 residential properties in Sidra Community and Emaar’s Vida Hills’ 426 apartments
Town Square by Nshama announced six residential projects to be completed by the end of 2018. 579 and 680 were the number of additional units completed by Safi Apartments and Zahra Breeze in 2019, respectively. Many other projects are expected to follow the same pattern and will be completed by the end of 2019.
Other prominent properties to be completed within the year 2019 are Arabella villas (first phase), Acacia Apartments in Park Heights and Seventh Heaven in Al Barari. Further, 2,550 will be added to the stock by Azizi Victoria Phase I and II, another 620 apartments and villas will be added by Wind Tower 1 and 2 in Jumeirah lake Towers, according to the report.