Why Anxiety About Oversupply Doesn T Affect Dubai Property Market
"We assume approximately thirty five,000 new residential units (apartments and villas) could enter the market during the interval 2013 to 2015 so long as construction delays are minimal," reckons Matthew Green, Head of Research & Consultancy UAE, CBRE Middle East.
The bulk of forthcoming residential supply is expected from secondary places in Dubailand 's sub-developments of Motor City, Dubai Sports City, Liwan and Dubailand Dwellings.
CBRE says Dubai's residential supply witnessed a compound average growth rate of around eight per cent, with flats rising by nine per cent and villas by four per cent.
However, the consultancy's supply figures are far less than what have now been stated previously by other constultants. In short, the stats make reference to only 12,000 new units per year an average of, as against the others estimating 20,000 to 25,000 new units per year.
UBS, the largest Swiss bank, said this past year it estimated housing supply by 2011 - end to be approximately 360, 000 with oversupply potentially at 150, 000 residential units.
Asteco, a real estate consultancy, in its first half 2012 report, said it expected 23,000 new units to be delivered this year only in Dubai. The overall market, it said, consisted of 402, 800 apartments and 58, 300 villas.
Real Estate Regulatory Agency (Rera) CEO Marwan bin Ghalitha said earlier this year that the emirate was to receive 16,000 new residential units in
2012. Citibank has stated that fast population growth in the UAE had led to a relative tightening in the housing market before 2009 with demand outpacing supply.
It stated that the situation was changing, stating the situation has begun to reverse because the past two years: a slow down in completions and a rise in population growth is reducing vacancy rates, a trend which it expects will carry on.
Bank of America Merrill Lynch has said Dubai's active population will grow by 6.1 per cent an average of over the next eight years, faster than residential supply, which can be set to grow by 4.9 per cent over the next couple of years.
By December 10, 2012, Dubai Statistics Centre sets residents of the emirate at 2.09 million.
Dubai's government's bond prospectus posted on the London Stock Market in 2011 revealed that the emirate had witnessed completion of 129 projects since 2009 with 237 out of 450 projects more likely to be completed in due course.
The emirate's "safe haven" status in addition has assisted in the market's resurrection with establised developers launching new projects mostly in their sought-after developments.
This season, Emaar Properties and Nakheel have already announced new projects in Downtown Dubai and Palm Jumeirah, respectively. To not be put aside, a amount of private developers have revived their stalled projects under the Dubai Land Department's Tanmia and Tayseer initiative in Operation Bay, Jumeirah Village and Jumeirah Lakes Towers.
On Sunday, Dubai Holding and Emaar Properties, the development partners of Mohammed Bin Rashid City (MBR City), revealed & # 34; Dubai Hills & # 34;, the very first project in the brand new multi - billion - dollar development.
On back of those project launches, CBRE's Green does expect more new launches next year, as supply amounts becoming increasingly tight in popular neighborhood areas. Have a look rent property dubai
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