Property developers sharpen focus on deliveries as market stabilises

More and more developers are focusing on the delivery of properties than launching new projects as Dubai’s real estate market shows signs of stability, a sign that the supply of property has caught up with demand. This year, 42,241 units are expected to be completed by developers, including 31,341 apartments, 9,909 villas and townhouses, and 991 commercial properties.So far, 13,815 units have been completed, featuring 11,035 apartments, 2,562 villas and townhouses, and 218 commercial properties within 64 projects

In 2023, as many as 35,160 properties were completed, including 28,650 apartments, 5,187 villas and townhouses, and 1,323 commercial properties across 154 projects, taking the residential stock of properties in Dubai to 719,000 units by the end of 2023, according to market reports quoting Dubai Land Department figures.

With the ongoing deliveries, Dubai’s residential stock would cross 760,000 units by the end of 2024 that will help demand-supply situation to rebalance to a comfortable level. However, the statistics by Dubai Land Department shows that the market has started to stabilise while the sale transactions in the second quarter of 2024 has started to decline. A total of 80,118 properties, valued at Dh233.1 billion were sold in Dubai in the first half of 2024, according to Dubai Land Department statistics.

A total of 43,612 land and properties valued at Dh124.6 billion were sold in Q2, 2024, which is 44.1 per cent higher compared to Q2 2023 sales figure. These include 33,704 apartments, 5,887 villas, 2,891 plots of land and 1,130 commercial units. 8,989 mortgage transactions were recorded in Q2 2024, up by 6.8 per cent compared to Q2 2023. Mortage transactions were valued at Dh44.3 billion in Q2 2024, up 34.8 per cent compared to Q2 2023.

A total of 12,152 land and property transactions took place in the second quarter of 2024, valued at Dh33.9 billion, which is 62.5 per cent lower than Q2 2023. Of these, 10,041 apartments worth Dh18.8 billion were sold in Q2, 2024, which is lower by 56.6 per cent and 999 villas worth Dh5.4 billion were sold which is lower by 75.5 per cent compared to Q2 2023 and 796 plots of land worth Dh9.2 billion were sold in Q2 2024, 58.9 per cent lower compared to Q2 2023.

While the leading developers such as Emaar Properties, Nakheel, Dubai Properties, Wasl Properties, Ithra, Damac Properties, Danube Properties Sobha, Azizi dominate the headline in delivery, and property launch, smaller developers also do their bit, but remain under the shadows of the bigger players.

One such player, Marquis Developers, has been silently launching and delivering homes, without much noise, while launching its new project, Marquis Insignia project. It has commenced the handover of 91 residential and commercial units of its Marquis Signature project in Arjan. The event was attended by Marwan Bin Ghalita, Director-General of Dubai Land Department.

Haider Ali Khan, CEO of Bayut & Dubizzle and Head of Dubizzle Group Mena, said: “Dubai’s property market has yet again witnessed a period of remarkable growth. We continue to see an upward trend driven by a variety of factors including enhanced investor facilitation, transparent property transactions, and the introduction of new off-plan projects amongst others.

Dubai has always remained an attractive city globally, but the new resident visas introduced by the government may have encouraged an even higher influx of new residents. The city has welcomed more than 25,000 new residents in just the first quarter of 2024, which has predominantly fuelled the demand for property. Projects such as the new airport in Dubai South, new metro stations and Etihad Railway also seem to have bolstered buyers’ interest in nearby areas. Similarly, the launch of new off-plan projects, availability of ready projects, provision of top-notch amenities, and overall investor convenience have all positively impacted Dubai’s real estate market. All these factors have led to a surge in searches for both luxury and affordable properties across popular areas, reflecting consistent growth month after month.

Original article reference: Khaleej Times.

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