Dubai property handovers: ‘71% of units delayed in Q2’
Majority of units initially scheduled for completion in second quarter were delayed, says Cavendish Maxwell report
More than seven in ten Dubai property units scheduled for completion in the second quarter were delayed, according to a report by Cavendish Maxwell.
Approximately 2,800 residential units were actually completed during the period, mostly apartments, with less than 4% being villas and townhouses, the property consultancy said.
“Nearly 71% of total units initially scheduled for Q2 have been delayed,” according to the Cavendish Maxwell Q2 2016 Residential Market Reports.
“There are 34,475 units scheduled to enter the market in second half of 2016, though delays are likely to greatly reduce actual delivery. Of the additional residential units set to be delivered in H2 2016, the majority are located primarily in Dubailand followed by Dubai Silicon Oasis and Meydan City.”
Forecasts for property deliveries in the Dubai market have been subject to much debate. Ziad El Chaar, Managing Director at Damac Properties, in October criticised some real estate consultancies’ estimates that up to 25,000 units would be delivered to the market in 2015.
In the Abu Dhabi market, Cavendish Maxwell said that investment zones saw approximately 570 units completed in Q2, with an additional 3,100 set to enter the market in the second half of 2016. Around 90% of the total upcoming supply in the second half is apartments, with Al Reem Island the key location. “Nearly 11,000 units are expected to be added to investment zones between 2017-18,” the consultancy said of the Abu Dhabi market.
Apartment and villa prices in Dubai and Abu Dhabi were between 4% and 6% lower in the second quarter compared to the same time last year, the Cavendish Maxwell research noted.
