Dubai residential units supply unlikely to meet rising demand this year

Dubai residential units supply unlikely to meet rising demand this year

The Dubai residential market is expected to see lower deliveries this year despite strong demand as rising construction costs and supply chain issues are impacting project delivery timelines and further increasing sales price, says a report.

The apartments and villas are expected to face shortage of at least 15 per cent residential units as developers will be able to deliver only 32,500 units compared to an estimated 38,000 planned this year. About 5,700 residential units were delivered in Dubai during the third quarter, totalling to 19,000 units delivered in 2022 is far while another 13,500 units are expected to be delivered in fourth quarter, according to the latest Core's Dubai Market Update report.

"This is a first downward revision that we have witnessed in our yearly forecasts since 2016. However, many developers are accelerating their completion timelines and aiming to handover projects sooner than anticipated due to positive market conditions," Prathyusha Gurrapu, head of Research and Advisory at Core, told Khaleej Times.

The Core's report pointed out that most deliveries continue to be in the apartment segment with only 22 per cent of year-to-date deliveries being villas.

"Villas in master developments offering a variety of amenities and a sense of strong community remain the