The number of completions for Dubai residential property hit the highest level for seven years in 2018.
Research by Dubai-based real estate agency CORE has shown that a total of 21,700 residential property completions were made last year, the highest number of completions since 2011.
Approximately 83 percent of the 2018 completions were apartments while 17 per cent were villas.
Dubailand continued to see the highest number of residential deliveries with 25 per cent of the total completions, followed by Jumeirah Village Circle and Triangle (13 per cent).
CORE confirmed that off-plan transaction volumes in Dubai dropped by nearly 30 per cent from 2017 to 2018, while secondary market sales saw a 9 per cent spike, reflecting an end-user market.
It conservatively estimates that over 28,500 units will be handed over by the end of 2019, with the majority forecast in the affordable to mid-market segment.
Edward Macura, partner at CORE, said: ‘2019 and 2020 are critical years in Dubai’s growth trajectory. Although the pace of price softening has relatively slowed, we expect a lag in sales and rental price recovery as existing vacant stock and future supply over the next couple of years is expected to outpace steady demand.’
He continued: ‘That said, the market is highly occupier friendly due to the wide variety of options now available at very competitive prices with higher levels of flexibility offered by both developers in new launches and landlords in the rental market.’
Mr Macura went on to say: ‘In the sales market, we expect transaction volumes to remain resilient, particularly in the secondary market as demand drivers such as steady oil prices, continued government spending and investor/occupier friendly regulations help absorption. That said, sales prices are forecast to remain under pressure in the foreseeable future as the market gradually adjusts to supply and demand dynamics.’