Dubai
Around 3,000 new homes were delivered in the first three months in Dubai, with 78 per cent of these being apartments. These include the Marina Gate Tower with its 415 units at Dubai Marina and the Serenia Residences (250 units) on the Palm.
“A further 42,000 are currently under construction and scheduled for delivery by the end of 2018,” JLL reports in its first quarter 2018 update on Dubai’s property market. Three developers — Damac, Emaar and Dubai Properties — account for more than 20 per cent of this.
But if the first quarter of 2018 handovers are any indication, the rest of the year could see only a further 9,000-12,000 units being readied over the next nine months. And that would be on par with the average over the last two to three years.
“Dubai’s real estate market has adjusted to more negative market sentiment in the first quarter of 2018, resulting in developers focusing more on affordable options,” Craig Plumb, Head of Research, JLL Mena, said in a statement on Tuesday. “With rents continuing to fall across the office and residential sectors, building owners and landlords are increasingly looking to incentivise to retain current tenants and have done so by setting more competitive prices and more attractive lease terms.”
