Gulf Construction

Despite overall declining property prices, there are many communities in Dubai that have been outperforming most global yields, such as International City which has an average 9.9 per cent gross yield and IMPZ at 8.7 per cent, based on asking prices from the last three months for both apartments and villas, said a report by leading real estate portal Property Finder Group.

Newly completed residential supply for December saw 482 villas added to the communities in Nad Al Sheba area of Dubai. Additionally, Dubailand and IMPZ added 203 and 128 apartments, respectively, to their ever growing roster, stated the report.

Property Finder research calculated that 14,707 residential units had a completion status of at least 95 per cent in October 2018 and were expected by the end of the year. However, of that figure, only 2,792 have been completed, pushing the remainder of that expected supply for 2019 completion.

Looking forward to 2019, projects with a 65 per cent completion status and 2019 completion date amount to 33,982 residential units, stated the report.

Lynnette Abad, the director for research and data, at Property Finder Group, said: “2019 is going to be an interesting year when it comes to completion of projects and new supply.”

“As we have seen this year, the amount of total new completed supply has increased by about 30 per cent compared to the last few years where new supply hovered in the 15,000 range each year,” explained Abad.

“Also, the materialisation rate increased in 2018 which we are expecting to see again in 2019 due to continued pressure to have projects completed gearing up towards 2020,” she added.