Dubai in line to absorb nearly 15,000 apartments this year
By end of the third quarter, handovers had crossed 10,000 units, Asteco says
Published: 13:53 October 17, 2017 Gulf News
Dubai: Dubai’s residential market could close the year with just under 15,000 apartments being handed over, compared to 8,750 last year. Much of the handovers are taking place in the emerging locations of the city, and continue to put further pressure on property values. But the full impact of the new deliveries could be felt only by early to mid-2018
“There has been a steady rise in new projects reaching completion. However, Asteco believes a significant amount of the supply previously forecasted for handover in [the fourth quarter of 2017] will spill over into 2018,” said John Stevens, managing director of Asteco. “These delays are likely to result from both intentional phasing considerations and unplanned construction delays/financial issues.”
In the third quarter, apartment prices were relatively unchanged, though on a year-on-year basis there was a relative decline of around 4 percent. For Business Bay and Dubai Marina, the dip was at a more pronounced 8 percent year-on-year, followed by Dubai Sports City, International City and Jumeirah Village, each recording a fall of 7 percent. The Greens and DIFC properties remained at par compared with the third quarter of 2016.
“The [2017 third quarter] results clearly showed a rise in transactions across the market, as owners and tenants continued to secure the best deal possible,” said Stevens.
“However, while the market remained flat or witnessed marginal decreases, some areas did show more pronounced drops, particularly year-on-year.
“The rise in new finance options for off-plan residential projects, including increased incentives and post-completion payment plans, has opened the market for buyers with more limited equity. These developments now demand a larger share of the sales volumes compared to completed units, with rates continuing to decline as a result.”