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Dubai Real Estate requires greater transparency in supply

The oversupply in <a href="http://realtyplusmag.com/dubai-real-estate-institute-signs-mou-with-abu-dhabis-adveti/">Dubai’s residential real estate</a> is coupled with an oversupply in the education sector as well, say property and education consultants in the emirate. While an estimated 60,000 to 65

BY Realty Plus
Published - Jul 10, 2019 5:52 AM

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The oversupply in Dubai’s residential real estate is coupled with an oversupply in the education sector as well, say property and education consultants in the emirate. While an estimated 60,000 to 65,000 residential units are likely to be completed or handed over to the market between 2019 and 2020, according to research from international real estate consultancy Savills, it is the downward pressure on property prices that is one of the important parameters to gauge oversupply in a particular market. Reports from Savills say there has been a drop of 8-10 per cent in asset prices across both apartments and villas in Dubai between June 2018 and June 2019, while the percentage drop in 2018 when compared to 2017 has been around 12 per cent. Also read http://realtyplusmag.com/consumers-firmly-steering-the-dubai-real-estate/ According to the report, two of the largest expenses families in the UAE have to budget for are housing and schooling. In recent years, there has been an increase in new school supply, but on the other hand there have been a higher number of families relocating back home where schooling is often free. Furthermore, Savills notes that even though Dubai continues to witness steady population growth, it is not directly correlated with real estate demand as not everyone moving to the city may be interested to purchase real estate.

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Tags : INTERNATIONAL Real Estate Dubai’s residential real estate Savills UAE