About 9,000 more residential units are expected to be completed by the end of the year, the global real estate consultancy company said in its report on Sunday.
"Even if these are not completed and handed over in time, Dubai's residential market continues to be over supplied and prices are not expected to recover before the second half of 2011 at the earliest," the consultancy said.
As the market has become more competitive (cheaper) from a tenant's perspective, the overall volume of leasing activity has increased.
Dubai remains the preferred location within the Mena region for many international occupiers and as occupancy costs continue to decline, this interest has resulted in an increase in the number of leasing transactions taking place.
"While conditions are expected to move further in favour of tenants over the next six months, it is important to recognise the Dubai market is far from uniform, operating as it does as a series of relatively discrete sub-markets, each driven by its own distinct drivers," the report said.
The Dubai office market also continues to move in favour of tenants as increased supply has driven rents down and vacancies up across the market. For the first time, tenants now have a wide selection of competing buildings from which to choose. This is leading to an increasingly polarised or "two tier market" displaying a number of different dimensions, the JLL report said.
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