A total of 31,000 residential units were handed over in Dubai in 2019, according to Asteco. Sarah Dea / The National
A total of 31,000 residential units were handed over in Dubai in 2019, according to Asteco. Sarah Dea / The National
A total of 31,000 residential units were handed over in Dubai in 2019, according to Asteco. Sarah Dea / The National
A total of 31,000 residential units were handed over in Dubai in 2019, according to Asteco. Sarah Dea / The National

Dubai expects supply of 50,000 new property units in 2020


Fareed Rahman
  • English
  • Arabic

Dubai is expected to see a fresh supply of 50,000 residential units and 2.5 million square foot of office space in 2020, similar to supply dynamics of previous years in the emirate, according to property consultancy Asteco.

Sale price declines are likely to ease this year, particularly for newly launched projects, as development costs are approaching the lowest practical level, Asteco said in its latest report. Prices in the secondary market, on the other hand, are expected to record additional drops in 2020, it said.

“We will continue to see project launches from master developers with construction-linked and post-completion payment plans," the report noted. "Calls from industry leaders or experts for a short-term curb on new projects in order to restore the supply-demand balance are expected to increase.”

Dubai's real estate market has slowed after a drop in oil prices that began in 2014, and has been further pressured by an oversupply of properties. Residential real estate prices dropped by almost 6 per cent last year, according to data from consultancy Reidin.

The emirate - the commercial and trading hub of the Middle East - in September formed a new higher committee for real estate to tackle supply issues in the market.

The committee set up on the directives of Sheikh Mohammed Bin Rashid, Vice President and Ruler of Dubai is working towards a better supply balance in the emirate's real estate market through greater collaboration between government-related entities and private-sector companies.

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Inside the Dh45m Cayan Tower penthouse

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Expo 2020 is also anticipated to improve overall market sentiment, particularly with the flow of a significant number of short-term visitors.

"The lead-up to and execution of the exhibition has and will continue to showcase the UAE and help project the national brand onto the global stage," John Stevens, managing director of asset management at Asteco, said.

A total of 31,000 residential units were handed over in Dubai last year, comprising approximately 23,600 apartments and 7,400 villas, with communities such as Damac Hills, Dubai Hills Estates and Akoya Oxygen accounting for the bulk of completions. The commercial sector received 3.1 million square feet of new office space, according to the Asteco report.

New supply entering the market is expected to continue putting pressure on rental rates this year in Dubai. Apartments, villas and offices recorded average rental declines of 11, 10 and 12 per cent rental declines in 2019, respectively. Sales prices of apartment, villa and office were down by an average of 13 per cent to 15 per cent last year.

“Increased affordability opened the market to a wider investor pool and facilitated a rise in end-users and first-time buyers,” the report found.

In Abu Dhabi, approximately 10,500 residential units are expected to come to the market in 2020. The majority of the upcoming supply is expected to be in Reem Island  (1,850 units), Al Raha Beach (3,800 units), Yas Island (1,300 units) and  Saadiyat Island (240 units). The emirate last year saw deliveries of 6,500 residential units, comprising 5,200 apartments and 1,400 villas.

Rental rates are expected to slide in Abu Dhabi this year for all asset classes as landlords look to offer discounts, incentives and flexible payment terms in the capital, according to the report.

Apartments and villas in the emirate recorded average annual rental declines of 7 per cent and 4 per cent, last year.

Although sales prices could further decline in the emirate, the proposed rent-to-own scheme available for a selection of Aldar projects is expected to boost interest.

Average apartment sales prices in Abu Dhabi decreased 8 per cent in 2019. The decline in villa sales prices was less pronounced at approximately 4 per cent, the report said.

The year ahead looks to build on the wide-ranging stimulus packages, budgets and reforms announced in 2018 and 2019, including Abu Dhabi’s Dh50 billion Ghadan 21, improvements to property laws and visa regulations, as well as Dubai’s largest-ever annual budget worth Dh66.4bn for 2020, Mr Stevens said.

“The initiatives seek to boost the economy as a whole and support the much anticipated launch of Expo 2020,” he said.

UAE currency: the story behind the money in your pockets
Tearful appearance

Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday. 

Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow. 

She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.

A spokesman said her upset demeanour was due to a personal matter.

EA Sports FC 25
THE CLOWN OF GAZA

Director: Abdulrahman Sabbah 

Starring: Alaa Meqdad

Rating: 4/5

UAE currency: the story behind the money in your pockets
ESSENTIALS

The flights

Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.

The hotels

Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.

The tours

A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages. 

%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Nag%20Ashwin%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EPrabhas%2C%20Saswata%20Chatterjee%2C%20Deepika%20Padukone%2C%20Amitabh%20Bachchan%2C%20Shobhana%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E%E2%98%85%E2%98%85%E2%98%85%E2%98%85%3C%2Fp%3E%0A
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Scoreline:

Cardiff City 0

Liverpool 2

Wijnaldum 57', Milner 81' (pen)

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

Getting%20there
%3Cp%3EGiven%20its%20remote%20location%2C%20getting%20to%20Borneo%20can%20feel%20daunting%20even%20for%20the%20most%20seasoned%20traveller.%20But%20you%20can%20fly%20directly%20from%20Kuala%20Lumpur%20to%20Sandakan%20and%20Sepilok%20is%20only%20half%20an%20hour%20away%20by%20taxi.%20Sandakan%20has%20plenty%20of%20accommodation%20options%2C%20while%20Sepilok%20has%20a%20few%20nature%20lodges%20close%20to%20the%20main%20attractions.%3C%2Fp%3E%0A
England squad

Joe Root (captain), Alastair Cook, Keaton Jennings, Gary Ballance, Jonny Bairstow (wicketkeeper), Ben Stokes (vice-captain), Moeen Ali, Liam Dawson, Toby Roland-Jones, Stuart Broad, Mark Wood, James Anderson.

Rooney's club record

At Everton Appearances: 77; Goals: 17

At Manchester United Appearances: 559; Goals: 253

Things Heard & Seen

Directed by: Shari Springer Berman, Robert Pulcini

Starring: Amanda Seyfried, James Norton

2/5

Scores

Rajasthan Royals 160-8 (20 ov)

Kolkata Knight Riders 163-3 (18.5 ov)

Stree

Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Election pledges on migration

CDU: "Now is the time to control the German borders and enforce strict border rejections" 

SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom" 

SPECS%3A%20Polestar%203
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3ELong-range%20dual%20motor%20with%20400V%20battery%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E360kW%20%2F%20483bhp%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E840Nm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20automatic%3Cbr%3E%3Cstrong%3EMax%20touring%20range%3A%3C%2Fstrong%3E%20628km%3Cbr%3E%3Cstrong%3E0-100km%2Fh%3A%3C%2Fstrong%3E%204.7sec%3Cbr%3E%3Cstrong%3ETop%20speed%3A%3C%2Fstrong%3E%20210kph%20%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh360%2C000%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ESeptember%3Cbr%3E%3C%2Fp%3E%0A
Results:

5pm: Abu Dhabi Fillies Classic (PA) Prestige Dh 110,000 1.400m | Winner: AF Mouthirah, Tadhg O’Shea (jockey), Ernst Oertel (trainer)

5.30pm: Abu Dhabi Colts Classic (PA) Prestige Dh 110,000 1,400m | Winner: AF Saab, Antonio Fresu, Ernst Oertel

6pm: Maiden (PA) Dh 80,000 1,600m | Winner: Majd Al Gharbia, Saif Al Balushi, Ridha ben Attia

6.30pm: Abu Dhabi Championship (PA) Listed Dh 180,000 1,600m | Winner: RB Money To Burn, Pat Cosgrave, Eric Lemartinel

7pm: Wathba Stallions Cup (PA) Handicap Dh 70,000 2,200m | Winner: AF Kafu, Tadhg O’Shea, Ernst Oertel

7.30pm: Handicap (PA) Dh 100,000 2,400m | Winner: Brass Ring, Fabrice Veron, Ismail Mohammed

UAE currency: the story behind the money in your pockets
While you're here
The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE