Research by Dubai broker says 387 real estate projects are set to be built in the emirate
Property developers in Dubai is scheduled to deliver another 387 real estate projects offering 163,840 new units over the next five years, according to new research.
A real time analysis of the market by broker fäm Properties shows that a total of 24 residential and commercial developments are scheduled to deliver 7,336 units for handover before the end of this year.
This is set to be followed by 63 (27,360) in 2018, 36 (19,850) in 2019, 12 (17,754) in 2020 and one (114) in 2021.
Another 251 projects (91,430 units) are either currently short of 100 percent completion or pending final inspection, with the developers having a 12-month grace period to deliver.
So far in 2017, Dubai has seen the launch of 90 new projects consisting of 36,556 units, while out of a total of 8,529 units delivered to date this year, 5,939 of these were handed over on schedule.
Overall, of the 105 developments (29,158 units) originally scheduled to have been completed by now this year, 43 (7,878 units) have so far been delivered, meaning the average unit delivery rate is 27 percent and the average project delivery rate is 41 percent.
Meanwhile, 59 projects offering 16,993 units have completed over 80 percent construction to date, according to fäm Properties, one of Dubai’s largest real estate brokerages.
Firas Al Msaddi, CEO of fäm Properties said its online analysis tool also provides comparisons on the change of rent over time in Dubai for properties from studio apartments up to 5 bed units.
He said that although rental rates for the same category of apartments in the same area have varied greatly based on size and location over ten years – a major factor in the buying decision – the gap has closed significantly in the last two to three years.
While two bed apartment rentals in Downtown Dubai ranged from AED260,000-150,000 annually in 2009, reaching a low of AED120,000-95,000 in 2012, December 2016 rates were at AED180,000-160,000.
Over the same period, two beds in Dubai Marina started off at AED180,000-150,000 and returned to AED180,000-140,000 at the end of last year after falling to a low of AED100,000-65,000 in December 2011.