Dubai – Mubasher: New homes which are expected to be handed over in Dubai may exceed 21,500 by the end of 2018, a recent report revealed.

The emirate’s developers have delivered more than 6,000 residential units to date this year, the report said, adding that 2018 is a “critical year" in Dubai’s real estate market.

“This is the third consecutive year with average sales prices softening across most districts, along with widespread rental declines,” the report added, noting that that the recovery in sales is not expected to occur soon.

Despite the decrease in rentals, the lower sales have contributed to decreasing ownership costs, especially for long term occupiers, a partner at Core Savilla Edward Macura told Construction Week Online.

“This shift from rental to ownership is also shrinking the rental pool, leading to further downward pressure on rentals,” he added.