30 August 2015Lookup.ae
- a real estate information portal that reports on the Dubai market
- has published an in-depth special report that analyzes the Dubai Real Estate Market in terms of historic, current and future supply.
"The report acknowledges the fact that as of 2015, there are a total of 65,000 freehold residential units under-construction which will be delivered through 2019. Approximately 45% of that future supply will be handed over during the next 18 months," says Gibran Y. Bham, a Co-founder of Lookup.ae and the author of the report. "Considering that we are now in more uncertain global economic times and with the Dubai market having slowed considerably since mid-2014, this supply will most definitely put downward pressure on capital and rental values." That in itself is not the point of the report. Gibran further added that, "we believe that it is important to place the future supply and the activity we have witnessed in Dubai since early 2013 in a historical perspective and this is why we published this report. There is a lack of public information which allows investors and industry stakeholders to definitely place current activity in the right context. We believe that this supply will be absorbed, Dubai will become more affordable and thus more competitive and a number of Government initiatives will begin to bear fruit in 2017."Key Report Highlights:
- In 2015 future supply is just 35% of current supply. In 2008, future supply was 332% of current supply.
- During 2009 & 2010 current supply grew by 117% in 24 months. In the next 18 months, current supply will grow by 19%. - Since 2012 (a period of 43 months) a total of 44,000 new units were launched. In 2008 alone, a total of 47,756 units were launched by developers. - Real Estate investors in Dubai of 2015 are not heavily leveraged as in 2008. The steady market correction starting in early 2014 following Government policies has allowed investors to divest of excess holdings. - One of the key reasons that the Dubai market declined in 2008 was the fact that there was an overwhelming amount of projects under-construction and very little ready supply. Panic set in for a variety of reasons but also because Dubai did not have the credibility in 2008 as it does now. Read the full report: https://lookup.ae/article/12/is-2015-different-from-2008-an-anatomy-of-a-market
Lookup.ae was launched in mid-2014 and connects its users to information, analysis, opportunities and professionals in real estate Dubai. Lookup.ae is free to use and is frequented by investors, home-owners, market observers and real estate professionals. Built on incredible database technology, Lookup.ae reports on over 800 freehold projects in Dubai. Lookup.ae is part of GAIM FZ LLC. For more information visit www.lookup.ae
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© Press Release 2015