Samir Salya discusses the rise in new home handovers in Dubai

Figures show that Dubai’s developers have become more committed to faster handover schedules in 2017.

The first half of this year shows that 13,315 homes were delivered, against just 5,039 in the corresponding time period in 2016. Data from Reidin-GCP shows that the first half of 2015 was slightly more than 2016 at 8,714 units.

Can developers hit targets?

Even if they continue at the same pace for the rest of the year, it looks unlikely that developers will be able to meet their 12-month expectations of 34,172 units delivered.

Full year totals for 2015 came in at 11,879 and 2016 at 14,892 units. This gap between realty and forecasts is likely to become even more stark in 2018. There is an expectation of 70,785 units to be handed over next year, which is extremely unlikely judging by current performance.

It’s likely that instead the realisation rate next year will be at 44%, which means 31,266 units being delivered.

Increase in population

The population has increased by around 5%, which actually matches with an annual increase of 30,000 units per year. If the population grows by 7%, this would jump to 35,000 units.

Developers have become better at adjusting the realisation rates of units on a year-on-year basis. This allows them to better manage expectations of supply. This makes a lot of sense from a developer’s point of view, as they are obviously trying to minimise any unsold stock. If there was a spike in unsold units, then this could negatively affect property values.

Handovers by community

Among the free hold communities in Dubai, the highest number of units successfully handed over goes to Dubai Silicon Oasis with 2763 handed over in the first six months of 2017. Coming up just behind with 2,520 units delivered is Dubailand and International City saw completions at 1,543 units.

In premium property areas, Downtown had 1,411 handovers and Business Bay had 869. Coming up as part of the fast-emerging newer communities, Jumeirah Village Circle had 694 homes delivered.

The rapid rate of change in suburban, more affordable areas shows that there is a real need for balanced housing at achievable prices.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing