Friday, April 15, 2011

Dubai to get 20,000 new homes towards the year-end

About 20,000 new residential units are likely to enter Dubai market towards end of this year, while rents in the low and mid-end apartments will see further declines, said Jones Lang LaSalle (JLL).

With about 7900 units being completed during the first quarter, the total residential stock at present has touched 317,200 units. With another 20,000 units ready for completion towards the year-end, the total residential stock will touch nearly 338,000, reveals the first quarter report of global real estate consultancy about the Dubai real estate market.

Towards the end of the year, the apartments will constitute 79percent of total residential stock.

The Director General of Dubai Land Department, Sultan Butti bin Mijrin, during his talk with the media, said that nearly 10,000 new houses will enter the real estate market this year. However, this will not add to the pressure on the local property market, he said.

According to JLL, Nakheel has recommenced its work on few stalled projects, and the first project is being financed under the RERA’s Tayseer Programme. This is an indication that the future supplies for 2012 could be increased.

At present, there are nearly 114 projects under this scheme. But, this trend could be compensated if RERA cancels about 90,000 units that it is currently reviewing.

JLL hopes that general easing of lending conditions, coupled with price stability in some areas will help in raising transaction volumes in 2011. Dubai has registered land transactions worth Dh.120bn last year, and it expects the market to perform better than the last year.

In the office sector, about 4.6mn square feet of space was completed during the first quarter, making the total stock touch 60.2mn square feet. The new additions were mostly recorded in Jumeirah Lakes Towers, Business Bay, Tecom C and the Dubai International Financial Center.

According to JLL, it has been estimated that nearly 14mn square feet will be completed, although, the actual deliveries will be lower, as developers continue to face tight cash flow and current oversupply situation worsens.

1 comment:

new homes developments said...

Towards the end of the year, the apartments will constitute 79percent of total residential stock.Why?