Video: Demand for residential units in Dubai outpaces supply
Kalpesh Sampat, chief operating officer of SPF Realty, says that despite the large number of residential projects being launched in Dubai, demand continues to outpace supply
The Dubai real estate market would do well to understand that a new project does not automatically translate into new supply, said Kalpesh Samat.
The chief operating officer of SPF Realty offered this piece of advice in response to speculation in the market of how Dubai is suffering from an oversupply of residential properties. On the contrary, demand for residential properties is reportedly outpacing supply, and will continue to do.
"Supply or actual delivered units are not the same as new projects being launched," he explained. "In general, the delivery of units in 2016 was at the lowest point since 2008 on an annualised basis. We were only at 8,000 units as of June 2016, perhaps 12,000 by the end of the year. And this is much lower than any single year going back to [...] 2008."
He continued: "The other point is, on average, developers delay by at least a year in terms of delivery. We see that there are a multitude of factors, including approvals, RTA access roads, etc. So we need to take into account that new project does not equal to new [...] supply."
In the following video, Samat elaborates on the topic of demand and supply in the Dubai residential real estate sector.