Expo 2020 Dubai: Record new residential units come online this year
As Dubai’s property sector gained momentum ahead of Expo 2020 Dubai, a record number of residential units are expected to come online this year, says a report.
Latest data released on Monday by real estate consultancy Core estimate that 37,000 residential properties will be delivered this year. It is the highest number of residential deliveries in Dubai over the last decade as investor confidence returned to the market.
“Nearly 24,000 units have been delivered during the first three quarters of this year and another 13,000 properties are expected to come online in October-December quarter,” according to Core’s Dubai Market Update.
The report further clarified that apartments continued to dominate new residential supply in Dubai, accounting for 86 per cent of the total residential handovers between the period of January and September. Apartments prices rose two per cent year-on-year basis in 2021 despite an increase in supply during the first three quarters.
Major apartment projects that have been handed over are Tiara United Towers in Business Bay, Artesia in Damac Hills, Bloom Heights in Jumeirah Village Circle and 52-42 in Dubai Marina, the report said.
Villa price recovery
The real estate consultancy further pointed out that Dubai villa price recovery will continue due to limited villa stock. Villa sales prices surged 16 per cent this year so far as the demand picked up after the change in lifestyle and work requirements due to the Covid-19 pandemic.
Akoya Oxygen and Villanova, both in Dubailand, and Club Villas at Dubai Hills Estate, registered prominent villa deliveries this year while some areas in Dubailand, Jumeirah Village Circle, MBR City and Business Bay are witnessing the highest number of deliveries.
“These areas are expected to continue seeing a steady stream of handovers over the next few quarters,” the report said.
New projects announcements
Core’s Dubai Market Update said fewer announcements to launch new developments and robust transaction activity are expected to keep underpinning market recovery.
“While there have been a few large project announcements recently including the Regalia Residences by Deyaar, Murooj Al Furjan by Nakheel and Palace Beach Residence by Emaar, total new project volumes have significantly contracted with year-to-date volumes 47 per cent lower than 2020 and 79 per cent lower than 2019,” the report said.
The off-plan market, after facing headwinds for over a year and witnessing significant contractions, has seen a ‘V-shaped’ recovery with off-plan transaction volumes up by 108 per cent during the third quarter of 2020 and 18 per cent when compared to third quarter of 2019, signalling a return to pre-pandemic levels.
“While the preference for ready built stock is expected to continue, we also foresee off-plan activity continuing to gather pace as investor confidence and appetite steadily returns to the market,” the report said.