Dubai property achieves supply-demand balance, prices hit lowest mark.

Dubai's top private developers believe that a demand-supply balance has been achieved to some extent, and that prices are at rock-bottom and unlikely to go down any further.

Hussain Sajwani, chairman of Damac Properties, said that the market turned the corner in 2018 when new launches started to decline.

"We launched only one project each in 2018 and 2019, as compared to 10-12 in 2015. Our new project launches are 90 percent less now, as we're focused on deliveries. In 2019, we delivered over 6,000 units and plan to handover 8,500 this year and 9,000 next year. I believe that if the supply is stopped for a couple of years, the balance will be achieved between supply and demand," Sajwani said.

Last year, 20,000 residential units were sold across Dubai, the Damac chairman had said earlier. This year, the developer hopes to sell 1,000 units.

"The prices won't get cheaper in 2020-2021. The supply is getting less, and hopefully, in 2022, the prices will get much better," he said during an interview with the CNBC at the World Economic Forum in Davos.

"Prices are rock bottom. Today, in Dubai, what you're buying is almost at the cost of the developer or below cost," he told in an interview.

He said that the supply has been curbed in the last couple of months as most of the big developers are not bringing in new projects.

Data by real estate consultancies show that the actual supply is less than projected, while sales have jumped substantially in the later part of last year, as properties become more affordable due to a persistent decline in prices. Data by ValuStrat revealed that a total of 24,613 residential units were confirmed to have been completed in 2019, which means that total completions represented only 58 percent of the projected residential supply...