Dubai’s residential property handovers in 2021 will peak to their highest level in a decade, as the market continues to recover from the slowdown induced by the coronavirus last year, real estate consultancy CORE stated in its new report.
Around 24,000 apartments and villas have been turned over this year, while an additional 13,000 units are expected over the fourth quarter. Total deliveries for the year will reach 37,000 units, the highest since 2011.
The coronavirus pandemic had prompted developers last year to hold off new project launches, while contractors and construction firms scaled back activities, thereby slowing down new supply deliveries. But so far this year, new projects have been announced and construction sites resumed work as COVID-19 restrictions eased.
Explaining the high volume of handovers, Prathyusha Gurrapu, head of research and advisory at CORE, said the units delivered this year have been in the pipeline for the last three to five years. She also noted that developers have been focusing on existing project deliveries instead of building new units.
“Total new project announcements have significantly contracted over the years with year-to-date 2021 announced unit volumes being 47 percent lower than 2020 and 79 percent lower than 2019 due to various government directives,” Gurrapu told Zawya.
In its report, CORE said apartment units continue to constitute a significant portion of the new residential stock in Dubai, accounting for 86 percent of the total deliveries this year.
Major apartment projects that have been turned over are located in Business Bay, DAMAC Hills, Jumeirah Village Circle and Dubai Marina. As for villa properties, new deliveries were recorded in multiple projects in Dubailand and Dubai Hills Estate.
“Pockets in Dubailand, Jumeirah Village Circle, MBR City and Business Bay are witnessing the highest number of deliveries and these areas are expected to continue seeing a steady stream of handovers over the next few quarters,” the report said.
RESIDENTIAL DELIVERIES IN DUBAI 2011 - 2022>
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Dubai’s property market had been subdued prior to the coronavirus pandemic due to housing oversupply. However, sales transactions have been picking up after the COVID-19 lockdown in 2020, as property buyers took advantage of falling prices and attractive mortgage rates.
Although handover volumes will reach their peak this year, CORE said lower launch volumes and robust transaction activity are expected to keep underpinning the market.
The developers that have resumed off-plan launches this year include Union Properties, which recently unveiled two projects, the Motor City Hills, which is expected to deliver 415 townhouse villas, and Motor City Views, which will feature 880 apartments.
Also this year, DAMAC Properties shared plans to develop Cavalli Tower, a 70-storey skyscraper comprising 485 units. Another UAE-based company, Samana Developers, launched a residential wellness project in Dubai Studio City which will feature 233 apartments.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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