Dubai to get 45,000 new residential units by 2015

More than 9,000 new residential units were handed over in the first nine months of 2013 in Dubai, but nearly 45,000 under-construction units are set to be delivered by 2015, according to Jones Lang LaSalle (JLL).

“An increasing number of residential projects are currently being delivered as developers are taking advantage of the positive market sentiment to re-start previous stalled developments or hand over new ones. In the first nine months of 2013, more than 9,000 residential units have entered the market, around 50 per cent more than the number of units handed over during the same period in 2012,” the global consultancy said in its third quarter report on Dubai real estate market.

At the end of Q3, 2013, the total residential stock in areas monitored by JLL was at around 364,000 units.

Over 3,400 units were handed over in the third quarter of 2013, the report said.

The projects completed include villas in Jumeirah Park, the Villa-stage 3 in Dubailand (306 villas), Burjside Boulevard by Damac in Downtown Dubai (351 units), Suburbia by Damac in Downtown Jebel Ali (104 units). Other projects have been delivered in International City, Dubailand, Dubai Sports City, Silicon Oasis and Tecom among others.

According to JLL, the number of residential projects currently being delivered is increasing as developers. Besides, developers are taking advantage of the positive market sentiment to re-start previous stalled developments.

Based on developer figures, the report reveals around 45,000 residential units are under construction and expected to enter the market by 2015. However, in reality some of the projects might be delayed beyond their scheduled dates.

The majority of the future completions will be located in the submarkets of Dubailand (16,000 units); Dubai Marina (3,700 units); Dubai Sports City (3,600 units); Business Bay (3,000 units); and Jumeirah Village (2,800 units).

Moreover, improved confidence, economic growth and rising demand have encouraged developers to announce new large-scale projects such as the Mohammad Bin Rashid City; Dubai Sustainable City; Jumeirah Island Park by Nakheel; Emaar’s The Hills, Burj Vista in Downtown, The BLVD and The Address Residences. These announced projects are likely to be ready by 2016 to 2018 at the earliest.