New houses to be completed in Dubai by Q1 2020

Around 6,500 residential units are likely to be completed in Dubai between the last quarter of the year and first three months of 2020, a new report said.

According to Data Finder, the real estate insights and data platform under the Property Finder Group, a total of 13,216 units are scheduled to be completed in Dubai towards the end of 2019 or Q1 2020.

However, since the actual completion rate has generally been 40 to 50 per cent of expected completion, developers will most likely deliver around 6,500 units.

Cumulatively, the total number of new houses for the year amounts to approximately 39,000, up from the 33,881 residential units completed last year.

Currently, there are 59 projects in Dubai with a completion percentage of 97 to 99 per cent, Property Finder said.

However, even with a high completion status, not all projects will be ready for handover this year, going by previous completion rates, the report added.

“Going into next year, I believe we will start to see a shift from developers. I believe less new projects will get launched as developers will concentrate on completing their current projects and selling their large inventory of ready/completed units,” Lynnette Abad, Director of Data and Research, Property Finder said.

“I also expect to see more creative payment schemes from developers who have large, ready inventory as well as rent-to-own schemes in efforts to move their stock,” Abad added.

Only 68 projects were launched in the first nine months of 2019, according to Property Finder, as developers responded to the need for lower levels of future supply.

Dubai launched the Higher Real Estate Planning Committee in September 2019, to manage the balance between supply and demand, maintain the diversity of projects and ensure that developments add real value to the national economy.

The emirate saw an instant impact following the launch of the new real estate committee. Dubai Land Department (DLD) said in September that real estate transactions increased by 134 per cent.

According to Property Finder, of the 13,216 units that have a completion date between Q4 2019 and Q1 2020, the majority are apartments (11,499), while the remaining are villas/townhouses (1,018) and serviced apartments (699).

Business Bay will see the highest number of residential units completed in the remainder of the year (1,726), followed by Dubai Silicon Oasis (1,066), Al Furjan (986), Dubai South (810) and Dubai Sports City (792), the report said, noting that other communities, where houses are scheduled to be completed in 2019, are Dubailand, Muhaisnah, Town Square, Jumeirah Village Circle and the Palm Jumeirah.

While there are concerns that the housing supply is increasing, a more affordable market overall would be a welcome trend for residents and investors, the report added.