Expected Off-Plan Handovers 2019-2022
During 2019, the Emirate of Dubai is expecting 90,080 residential units to be handed-over to their new owners (74,911 apartments, 12,414 villas and 2,755 townhouses).
In 2017 there were a total of 33,403 residential units handed over and in 2018 there were 27,500 residential units. Therefore, there is a large increase expected for this year.
During 2019 the majority of units expected are in: -
Mohammed Bin Rashid City - 6,124 apartments and 2,239 villas
Dubai Silicon Oasis - 3,035 apartments
Dubai Marina - 3,118 apartments
Jumeirah Village Circle - 7,754 apartments
Al Furjan - 3,244 apartments
Town Square and Akoya - 4,855 apartments
Business Bay - 5,069 apartments
Downtown - 3,363 apartments
In 2020 the expected supply falls to 61,707 residential properties consisting of 46,317 apartments, 13,872 villas and 1,518 townhouses.
In 2021 the residential property supply is much lower, total of 17,654 residential units consisting of 10,944 apartments, 6,677 villas and 33 townhouses.
And in 2022 the supply is even lower, a total of 5,140 properties made up of 2,604 apartments and 2,536.
Supply and the future of the Dubai Property Market Prices
Rental Market
The significant increase of units handed-over in 2019 will result in the supply of rented accommodation being greater than the level of demand from tenants. Therefore, in most areas the rents achieved are likely to decrease for the short-term.
The introduction of new initiatives and regulations by The UAE and Dubai Governments, together with positive effects of Word Expo which begins in October 2020, should result in the “bottoming-out" of rents -reaching their lowest or worst point - before beginning to rise in 2021.
Sales Market
The increase of hand-overs will result in some of the owners listing their property for sale. So the sales market prices will continue to readjust slightly in some areas of the Emirate over the next few months.
As mentioned earlier, Dubai has recently been enforcing news initiatives and regulations for residency and company set up. These are already encouraging more people to live in the Region and the Emirates and result in an increase of demand from buyers.
The decrease in the anticipated number of hand-overs in 2021 and 2022 should result in the level of demand catching up with the supply of homes. Based on the above, we should start to see an increase in property prices by mid-2021.
Mid-term and long-term investors will benefit from buying now or over the next year to take advantage of the expected increase of population and the level of demand.
