In a report titled “UAE Real Estate Market in 2015,” JLL Consulting said, the number of residential units throughout the UAE in 2015 is still lower than in recent years. And this trend is likely to remain low in 2016.
The report adds that the rate of progress has changed from 30% -50% in Dubai in recent years. This means that many of the supplies expected in 2016 (26,000 units) will not be delivered on schedule.
Only 7,800 of the 25,000 housing units were delivered in Dubai in 2015
According to JLL, a similar trend is also taking place in Abu Dhabi, where the proportion of projects under construction is expected to be low in 2015, with just over 1,000 units being delivered.
Most of the expected supply at Emirates is now being pushed to meet market demand by the end of 2016 and 2017.
Delays in project deliveries are a result of low turnover and reduced government spending. Developers need to provide adequate supply with market demand to avoid oversupply.