Report: 71% Dubai homes planned for Q2 delayed
Up to 2,800 residential units were completed during the second quarter of this year, with 34,475 scheduled for delivery in H2 2016, consultancy Cavendish Maxwell stated
Up to 2,800 residential units were completed in Q2 2016 in Dubai, with nearly 71% of total units initially scheduled for Q2 being delayed.
Cavendish Maxwell's Q2 2016 Residential Market Reports for Dubai and Abu Dhabi found that the majority of these completed developments in Q2 2016 were apartments, with less than 4% being villas and townhouses.
Nearly 34,475 units are scheduled to enter the Dubai market in second half of 2016, "though delays are likely to greatly reduce actual delivery", the property consultancy said in a statement.
Most of the additional residential units scheduled for delivery in H2 2016 are located primarily in Dubailand, followed by Dubai Silicon Oasis and Meydan City.
Dubai locations such as Business Bay and International City Clusters have witnessed 12-month declines higher than 7%.
Manika Dhama, research manager at Cavendish Maxwell, said transaction activity is anticipated to "remain muted" in Q3 2016.
"Developers are promoting Ramadan-linked payment plans and the ‘affordable’ tag continues to be aimed at first-time buyers," she continued.
"However, this is unlikely to ramp up buying activity in the short term among this target segment, given the restrictive mortgage-lending requirements and overall liquidity in the market."