Many people are asking me the same question:
Is there an oversupply of property in Dubai?
If the below figures are anything to go by it looks like the market will have over 250% more handovers in 2018 opposed to 2017, which is a huge increase.
Expect some projects to be delayed but to give you an idea of the supply, please see below:
Properties scheduled to be completed in 2018 – (data from propertymonitor.ae)
Apartments – 60,140
Villas – 9,822
Townhouses – 3,456
Commercial – 7,457
Completed units 2017:
Completed units 2016:
How many properties are already completed in total?
In a study from Dubai Statistic Centre at the end of 2016 there was a total of 522,365 properties in Dubai. 410,863 apartments, 89,076 villas and the remainder being commercial and industrial.
What is the current population of Dubai?
As of today, the Dubai Statistics Centre says the population is 3,002,658 which in light of the above figures would average more than 6 per property. We know that the large portion of the population is in shared accommodation or labor camps but this still does not explain the oversupply questions.
I believe the problem we have at the moment is pricing, tenants and buyers just cannot afford the going rents so are sharing which is leaving a number of units vacant in the rental market.
With the new supply in mind, if you are looking to sell or lease your property, look at the facts, you need to act now and be reasonable with your expected prices.
Tenants, if you are looking for apartments we have below market asking prices on 6 chq payments, please get in touch.
Buyers now IS the time to buy! we can assist with mortgages and offer the best properties off and on the market.
Laura Adams, Managing Director, Carlton Real Estate.
14th February 2018