SALe priceS, rentS tO StAy AffOrDABLe

2019 will also continue to be a pro-buyer property market in Dubai. Due to ample existing and recently delivered supply, sales prices are likely to remain under pressure in 2019.

“There are over 125,000 units anticipated over the next two years [2019 and 2020]. However, due to historically lower realisation rates, our conservative estimate for actual delivery is at around 48,500 units as developers are increasingly becoming aware of the market conditions and trying to either hold back stock or phase deliveries to align with demand. We expect buyers to prefer ready units or units nearing completion,” said Robert Thomas from Core.

In the rental market, the older centrally built stock will be unable to retain its novelty, with the occupier preference partially shifting to outer areas where newer and competitively priced options increasingly become available.

“Citywide rents are anticipated to see further softening, particularly in areas with handovers of long overdue projects, mostly located within the E311 corridor,” the ValuStrat report said.

P.N.C. Menon, founder and chairman of Sobha Realty, sounded upbeat in his outlook for 2019. “With more people choosing Dubai as their home this year, this will lead to higher residential demand. When customers have many options, we see a trend of them moving towards qualitative developers who deliver projects above the market standards in terms of product quality, amenities and timely deliveries,” he continued.