Amid the growing competition between real estate companies in Dubai, the concern is rising over a market glut. Demand for property in the growing emirate stabilised over the course of last year, however, more companies entered the market launching many new projects on all scales.
The sector faced declines during 2017 which forced developers to drop prices due to slow sales. With uncovering new projects, gloomier future is expected for Dubai real estate.
According to JLL’s Q3 2017 report, about 3,300 residential apartments were delivered last year. The report mentioned also that up to 80,000 residential units will be delivered by the end of 2019 as development activity intensifies in preparation of Expo 2020.
Another report, this one issued by Cluttons, mentioned that residential prices dropped in 2017. Prices slipped by 1.5% in the second quarter and 1.9% in the following quarter.
According to Bashir Osman, head of engineering at Gulf General Investment Company, the current market constraints will continue to curb the market in 2018 as the market will face the same challenges like oversupply and stable demand. He said that even more companies will enter the market next year which will keep competition raging in the market