UAE-based Property Finder has expected the number of completed residential units in Dubai to exceed 47,000 during the current year, following the finalization and delivery of around 21,014 residential units in 2018’s third quarter, Invest-Gate reports.
Only 1,187 out of the 14,707 residential units, with 95-99% completion rates, were finalized by late 2018, while the remaining 13,520 properties will most likely be done during the first half of 2019, according to the latest “Property Finder Trends” report.
Moreover, around 33,982 units are now under construction in Dubai, with a completion status of at least 65% and with completion dates scheduled throughout 2019.
Statistics by the research organization showed unprecedented growth in the number of finalized projects and predicted the new inventory to offer more competitive rents for tenants in the short term.
Property Finder further anticipated more price declines during this year due to the amount of additional supply and subdued demand, seeing a potential for more affordable home ownership for long-term renters.
“While many believe we are in a slump and property prices will go back to pre-2016 levels, the reality is that with the considerable amount of supply already released into the market, and the upcoming supply through 2022, the prices we are experiencing today are the new normal,” Lynnette Abad, director of research and data at Property Finder, said.
“We can expect prices to decline further in 2019 as the market absorbs the immense amount of supply that came in 2018, and what will complete in 2019,” he added.