Emirates NBD confirmed that Dubai is one of the few cities in the world that witnesses more than 100,000 launches of new residential units annually.
Noting that demand for units under construction has remained strong since the beginning of this year. The bank stated in a report issued on the residential real estate sector in Dubai, a copy of which was obtained by Al Bayan, that the launch of new residential units in Dubai is still active.
The city has so far witnessed the addition of 77,800 new units during the period from January 1 to the end of July. Swapnil Pillai, Director of Real Estate Research at the bank, added:
This number is 113% higher than the 36,500 units launched in Dubai over 6 years (from 2014 to 2019), explaining that with developer launches remaining stable, the total supply of residential units in 2024 is expected to approach what was launched last year, which recorded 107,000 units.
The bank stated that this rate of launches makes Dubai one of the few cities in the world that witnesses more than 100,000 new unit launches annually. In the same context, Mumbai witnessed the launch of 92,500 new units in 2023, according to Knight Frank India.
Fairmont Residences Solara, a branded residential project by Sol Properties in Downtown Dubai offering around 250 units, and Altos 1 and 2 by Emaar Properties in Dubai Creek Harbour were among the notable projects launched in July.
Alongside Binghatti Developers’ Grove (414 units) and Eman Developers’ 581-unit One Skypark in Jumeirah Village Circle, were other notable projects launched in July, the bank said.
The bank confirmed that demand for off-plan units has been strong since the beginning of the year and continued into July, with transactions in July reflecting the demand trend we have observed since the beginning of the year, with a total of 10,160 off-plan units sold in July, accounting for 66% of demand, with Dubai Hills Estate leading the off-plan transaction activity.
Of the 15,300 units sold in July, 12,400 or 81% were apartments, with Jumeirah Village Circle seeing the highest number of apartment transactions with 1,260 sales recorded, followed by Dubai Hills Estate with 1,150 units, Business Bay with 1,050 units, and Dubai Creek Harbour with 700 units. At the project level, the recently launched Arlo project in Dubai Creek Harbour saw the highest number of transactions, with over 370 transactions recorded in July, according to the developer’s website, and so the project currently has just 14 units left for sale.
Demand for villas and townhouses remained stable, according to the bank, with a total of 2,800 units sold, slightly lower than the 2,900 units sold in June, but 5% higher year-on-year than the 2,700 units sold in July 2023. Dubai South has also emerged as a hotspot for transaction activity over the past few months, with the highest number of villa transactions observed in July in this market, with over 330 units sold.
The bank reported that Jumeirah Village Circle (JVC) was the most active market this year, with nearly 10% of the approximately 90,000 units sold across Dubai so far across JVC developments, with the area being a preferred location for both end-users and investors due to its relatively affordable unit prices.
The area is also a preferred location for leasing as it offers easy access to two major highway networks, with retail and hospitality projects available within the community, and the upcoming Dubai Metro expansion, which is planned to connect JVC with other sub-markets within Dubai, is likely to add to the appeal of this market. The bank noted that approximately 14,100 units have been delivered across Dubai so far.
There are an additional 38,700 units scheduled for completion by the end of this year, with Business Bay having approximately 4,090 units scheduled for completion in 2024, followed by Jumeirah Village Circle with 3,900 units, Meydan and Damac Lagoons with 3,800 units each, and Al Furjan with 3,070 units.