Half of Dubai 2015 property projects delayed: ValuStrat
Prices stopped falling in Q4 and may plateau in 2016
Half of the Dubai residential property projects due to complete in 2015 were delayed, according to ValuStrat.
The consulting firm estimates last year’s total completed residential supply at 14,000 apartments and 3,400 villas, with many projects rescheduled for this year or next.
“Around half of the residential projects originally scheduled for completion in 2015 are delayed and have been rescheduled for handover during 2016 and 2017, reflecting a continued construction sector slowdown”, said Haider Tuaima, ValuStrat Research Manager.
Seven off-plan residential projects were launched in the fourth quarter of 2015, adding more than 1,500 units to the residential pipeline by 2018, ValuStrat said.
Dubai property prices stopped falling in the last quarter of 2015, and may ‘plateau’ this year, the ValuStrat research found.
The negligible change in prices last quarter marked the first time prices stabilised in the decline from the March 2014 peak, it said.
“Statistical analysis suggests that 2016 may witness a plateau in prices, indicating a buyer’s market in anticipation of higher rental yields for mid-affordable properties, and increased interest in prime properties in a search for capital appreciation,” ValuStrat said.
The firm measures prices of a fixed basket of properties in 26 freehold locations to create the ValuStrat Price Index (VPI).
The VPI indicated a 6.4% decline of values in the fourth quarter compared to the same period in 2014 – but no significant quarter-on-quarter change.
The median apartment value in December was AED 14,122 per sq m (AED 1,312 per sq ft) and for villas was AED 14,660 per sq m (AED 1,362 per sq ft), ValuStrat said. Asking rents dipped by 3% to 5% in comparison to the same period last year, it added.
