The extended residential projects handover schedule works as market stabilizer: Propertyfinder.
Experts at the UAE’s popular real estate search portal Propertyfinder expect the number of new housing units handed over in Dubai in 2017 to be significantly lower than it was planned.
This is normal situation at the Dubai’s real estate market, when the total number of annual handovers in fact doesn’t exceed 30 per cent of the planned volume. JLL analytical agency experts estimate that last year was actually the bumper year for Dubai construction sector. The largest number of new apartments and villas were delivered ever since 2012, meaning 15,000 keys were handed over to property landlords. Therefore, some decline in construction pace this year looks quite natural.
31,000 new apartments and other residential units are expected to be delivered in 2017 in Dubai, but in reality much less of these are going to be actually finished, Propertyfinder chief analyst Lukman Haji is sure. He believes that in this way the market protects itself from oversupply:
“Delayed handovers have helped stabilize market fluctuations over the past decade and are expected to continue to play that role,” said Hajje.
According to the latest MEED Projects report, major real estate projects worth more than USD100 million completed over the past half-decade took on average 4.1 years to deliver, while for mid-market real estate projects the median construction duration was about 3.8 years.
For potential customers, this means they will have more time to buy off-plan property at a reasonable price before many Dubai residential projects completion, and for sellers, this means that property prices won’t be pressed downwards due to market oversupply, at least for now.