Nearly 30,000 New Apartments to Be Made Available in Dubai This Year
At least 22,000 new apartments and 7,700 new villas are set to be made available in Dubai this year, new data showed.
Data from real estate consultancy firm Asteco, as reported by Alarabiya, showed this year's expected number of new apartments and villas set for delivery was relatively higher than last year's total figures of 13,500 new apartments and 800 villas. The report also showed that apart from the high volume of inventory that is expected this year, the rental rate was also expected to be on the decline at least until next year.
Real estate in Dubai will be largely driven by affordable housing offerings, which will receive a large chunk of the demand, according to the report. Renters in Dubai are expected to be drawn primarily by low-cost housing projects, which is a large percentage of the units that are expected to be delivered this year.
The report, however, noted that the high demand for affordable housing projects in Dubai would likely amplify the looming problem of oversupply of housing units, especially in the high-end segment of the market.
"However, if we look to the medium and long-term, the outlook is more positive with demand more than likely to grow in line with the progress of key infrastructure projects currently underway, such as Dubai World Central Airport and Expo 2020," Asteco's managing director John Stevens was quoted as saying by Alarabiya.
Amid the heightened activity in the construction segment, as evidenced by the ample supply of housing properties, apartment and villa sales were down on a year-to-year basis by 11 percent and 8 percent, respectively.
Across the country, the Meadow's villas suffered the sharpest price drop at 13 percent or AED 2,475 per sq ft., even higher than the regional average of 11 percent, as reported by Arabian Business. Another setback for Dubai housing market is that it's largely dominated by end-users instead of investors, especially for apartments and villas.