Opting for variety
The residential market in the UAE is currently facing an oversupply, and architects
say it’s time for developers to diversify their product
Across Abu Dhabi and Dubai, the residential market is fac-
ing an oversupply of units and UAE-based architects advise
developers to diversify their products in order to maintain
buyer interest.
According to a report released by Jones Lang LaSalle, the
value of residential properties in the UAE declined by 25
percent since its peak in 2014, and a further five to 10 percent
decline in property value is expected in 2019 due to the sup-
ply of homes currently exceeding demand.
Prime residential prices have also declined, stated the
report, which fell by 11 percent in 2018. Despite the resi-
dential market slump, though, the residential sector life-
cycle and upcoming Expo 2020 are indicators that property
prices may experience an upswing in the mid to long-term.
“Large residential developments, where hundreds of vil-
las are sold off-plan are definitely slowing down,” said Lee
Nellis, managing partner at the Dubai-based XBD Collec-
tive. “Clients realise they can buy plots and build something
suited to their needs at cheaper costs than buying off-plan
homes. However, the biggest problem is the oversupply of
apartments, and this has put a lot of pressure on develop-
ments under construction, as developers may not be able to
sell their apartments at the calculated rate.”
According to Martin Dufresne, design principal at U+A,
the country’s residential market is currently sales driven,
meaning sales teams within the developer companies are26 / SPECIAL REPORT