About 6,750 new residential units were added to Dubai’s property market over the past three months, bringing the total stock to 479,000 properties, according to a new report.
The ADIB / MPM Properties report states that most of the new units were delivered along the Sheikh Mohammed Bin Zayed Road corridor, with new homes in the International Media Production Zone making up 26 per cent of the supply.
The amount of new units delivered during the first half of the year climbed to 8,500, and MPM Properties said that it expects a further 11,500 to be handed over during the second half of the year.
The increased supply meant that prices and rents continued to fall. Average sale prices dropped by 3.5 per cent and rents fell by 3 per cent on the previous quarter.
“The volume of new projects in the Dubai market means that properties will increasingly need to appeal to potential buyers’ sense of value,” said Paul Maisfield, chief executive of MPM Properties. “That means a shift towards well managed, self-contained and mid-market properties, particularly close to the Expo 2020 site. We are also seeing a greater emphasis on buyer incentives and unique selling points, especially in the luxury segment and expect buyers to benefit from these trends.”
The report also warned that new leasehold property developments at the northern end of Dubai in areas such as Al Nahda, Muhaisanah and Al Qusais Industrial Areas 3 & 4 could “further exert pressure” on infrastructure, most notably roads between Dubai and Sharjah already facing serious traffic congestion at peak hours.
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