Dubai records 3,800 home handovers in Q1 2018
Q2 transactions will make up 46% of the handovers scheduled in Dubai for 2018, a new study by Cavendish Maxwell has revealed
Close to 4,000 homes were handed over in Dubai last quarter, with the number expected to impact rental values in the months to follow.
Real estate surveyor, Cavendish Maxwell, revealed that approximately 3,800 residential units were handed over across Dubai in Q1 2018.
In its Q1 2018 Dubai Market Report, Cavendish Maxwell said that the majority of Q1 2018's transactions were made in International City, Jumeirah Village Circle, and Dubai Studio City, each of which saw 250 units being handed over.
More than 92% of the handed over units were apartments, the company added.
Meanwhile, Business Bay, Jumeirah Village Circle, and Town Square are anticipated to see high handover activity in the upcoming year.
All three neighbourhoods have 2,000 units scheduled for handover before the end of 2018.
"Of the total scheduled handovers due for the remaining three quarters, approximately 46% of the upcoming supply is expected to be handed over during Q2," the report revealed.
Cavendish Maxwell said the increasing number of handovers would "continue to impact rents in most locations across Dubai, as tenants have more choice".
In turn, the trend would impact occupancy rates in existing stock, which must be "factored into the net yield estimations" for the upcoming period.
The Q1 2018 performance of Dubai's residential property sector "varied between communities and among different buildings within the same community, reflecting greater differentiation in how available properties are now trading", Cavendish Maxwell said.
It added: "During Q1 2018, residential property rents declined at a more pronounced rate than sales prices, resulting in yield compression in most communities.
"The pressure on housing allowances has also impacted rental market performance and the pool of tenants at the higher end of the spectrum continues to shrink.
"Rent declines will be more pronounced in areas with increasing supply and those located away from central business districts and public infrastructure."
Data within the Q1 2018 Dubai Market Report was provided by Property Monitor, a real estate intelligence platform.