Property Finder: Dubai project launches mark slowdown in 2019
To date, 68 projects have been launched in the emirate, with the trend expected to rebalance supply and demand in the market
UAE-based real estate marketplace Property Finder said that Dubai had noted 68 project launches – comprising 9,770 apartments and 2,507 villas – so far in 2019, with the number marking a decline compared to the 169 projects launched in 2018, when developers rolled out a variety of post-handover payment plans as well.
The subdued pace of launches is expected to help rebalance the supply-demand ratio in Dubai's residential market, and help developers clear existing inventory, Property Finder said.
In terms of supply, 33,427 residential units have been completed in Dubai this year. In September 2019, 3,249 units were completed across 23 projects in Dubai; 68 units were completed in one project in Abu Dhabi; and 184 units were completed across two projects in the UAE's Northern Emirates.
Property Finder's Data Insights platform found that 37 of the 68 newly launched projects did not specify their total number of units, while the remaining 31 schemes had added 12,277 new units to the market.
Mohammed Bin Rashid City, Dubai Creek Harbour, and Dubailand have witnessed the most project launches in Dubai year to date in 2019.
Commenting on the construction pipeline, Property Finder said in a statement that private developers believed they were better off completing current projects rather than launching new ones until "they see clear signs of a market turnaround".
This ties in with Dubai Higher Committee for Real Estate Planning’s brief to move toward a healthier balance between supply and demand.
Despite the slower pace of project launches, Dubai real estate sales transactions grew 33% between June and August 2019, compared to the same time period last year.
Dubai has registered 26,126 residential sales transactions so far in 2019, with off-plan transactions accounting for 15,031 of the deals, and secondary deals totalling at 11,095.
The top transacted areas for off-plan sales in September were Liwan in Queue Point, Dubai South, Meydan, Business Bay, and Arabian Ranches 3, while top areas for ready house sales were International City, Dubai Marina, Jumeirah Village Circle, Business Bay, and Dubai Sports City.
Director of data and research at Property Finder, Lynnette Abad, commented: “Off-plan transactions are still going strong and will most likely continue to dominate in transaction sales throughout 2020.
"We have a large pipeline of new units coming into the market over the next few years, which will continue to put pressure on prices until the supply is absorbed. However, with the various government initiatives and regulations, this should spur investor appetite in Dubai in 2020.”