Page 10 - Union Properties General Report - May 2024

International City, Palm Jumeirah, Damac Hills, Dubai Marina, Mudon, Discovery
Gardens, Remraam, Arabian Ranches and many others will benefit from these
initiatives driven by the government and private developers.

Gurrapu added that how the community management challenges were handled in the
aftermath of heavy rains “are expected to affect overall decision-making in addition to
location and pricing for buyers and tenants when looking at locations to buy or rent".

According to Cushman & Wakefield Core, over 8,351 units were handed over in the first
quarter of 2024, while an additional 29,690 units are expected to be handed over
between Q2 to Q4 2024, bringing the yearly forecast for 2024 to nearly 38,000 units.

Data from the Dubai Statistics Centre reveals that from January to March 2024, the
population rose by 25,776, with the supply numbers being delivered being absorbed by
the population growth.

Gurrapu stressed that there is no concern about oversupply in the residential property
market in Dubai.

“The overall residential supply delivery figures remain in line with our forecasts with no
major headwinds of oversupply in the near term. However, significant project launch
volumes may impact the supply-demand equilibrium after 2 to 4 years when most of
these projects are scheduled for delivery, provided they are delivered on time,” she
said.

According to Cushman & Wakefield Core, city-wide rents increased for the 13th
consecutive quarter, rising by 20 per cent year-on-year increase. The rents are higher
by 72 per cent than in Q1 2020.

"Household incomes aren’t increasing in line with the rising rents, further contracting
disposable incomes," Gurrapu said.

She added that the rising rents and rental yield levels are also expected to trigger end-
user purchases, particularly in the ready market as mortgage costs are expected to
moderate over the coming quarters, while rents are Gurrapu to continue their upward
trajectory.

Gurrapu also added that the Real Estate Regulatory Authority’s (Rera) rent calculator,
which was recalibrated on March 1, 2024, to be better aligned with open-market pricing,
will help reduce the disparity between renewals and new rents.

“The calibration of the calculator is expected to result in a sharp slowdown in disputes
over rental increases,” she said.

https://www.msn.com/en-ae/news/national/dubai-property-service-rates-may-rise-after-record-
rains/ar-BB1lXLyH