With more residential units being added, the realty market’s demand-supply gap may ease in 2025.
Property prices in Dubai hit all-time highs in 2024. This year, the question on everyone’s mind is: How will the anticipated surge in property supply impact this red-hot market? Let’s delve deeper and look at analysts’ perspectives and market trends.
The Dubai realty sector has been on a remarkable upward trajectory, with the ValuStrat Price Index reporting a 19.9% growth in property values in 2024. This surge has been driven by several substantial factors, such as —
- strong international demand
- limited supply
- Dubai’s reputation as a global business & lifestyle hub
- long-term growth prospects
- diverse location options
- market maturity benefits
- stabilizing price points
- strong rental yield potential
According to a report by Engel & Völkers, the market has experienced substantial growth due to increasing demand from international investors and end-users. The demand for luxury properties is rising by 16% YoY. However, the landscape is set to change dramatically this year.
According to recent data, Dubai is poised to witness a record-breaking increase in property completions, with more than 72,365 residential units scheduled for handover; this represents a massive 171% increase compared to 2024. Moreover, 243,000 new units will be delivered by 2027. According to Cavendish Maxwell’s latest analysis, this significant supply increase will help balance the market and ease pressure on both prices and rents.
Apartments are estimated to comprise 80% of the market, while other residential units will make up the remaining 20%.
Quick Facts Table — Growth Areas
| Neighborhood | Number of Units |
| Jumeirah Village Circle | 25,000 |
| Business Bay | 16,000 |
| Azizi Venice | 13,500 |
| Damac Lagoons | 11,100 |
| Arjan | 9,000 |
Other locations that will see substantial development with 2,000+ units include —
- Palm Jumeirah
- Dubai Hills
- Dubai Marina
- Jumeirah Village Triangle
- Al Furjan
- Dubai Silicon Oasis
- Town Square
- Studio City
Dubai is witnessing regular off-plan launches, averaging one per day. Let’s look at the figures, market drivers of 2024, and market outlook for 2025.
| Top Areas for Completed Deliveries | Mohammed Bin Rashid City: 5,300 homesJumeirah Village Circle: 4,800 unitsBusiness Bay: 2,800 unitsAl Furjan: 2,600 unitsRukan, Dubailand: 1,500 units |
| Launch Data | 145,000 new off-plan units launched in 2024An average of 400 units are launched per dayLeading developers:EmaarBinghattiDamac |
| Market Drivers | International demand from India & ChinaMiddle Eastern investment flowsStrong market fundamentals since 2022 |
| Positive Indicators | Continued growth projected in 2025Strong regulatory charterSustainable growth approachHealthy market fundamentalsRegulatory oversight averting market bubblesDeveloper commitment toward controlled growthPrice consolidation favoring long-term stability |
However, experts are divided on how this influx of new properties will affect the market, as the realty market’s resilience will be put to the test. Some analysts think it will balance the demand-supply gap. Key factors fueling this economic growth are —
- the UAE’s welcoming international environment
- security
- tax-friendly landscape
Others urge caution and say that investors should evaluate developers and projects with an eye on a developer’s track record. With new developments in prime areas such as Jumeirah Village Circle, Mohammed Bin Rashid City, and Business Bay, 2025 promises to be a pivotal year for Dubai’s property market. For potential investors and homebuyers, the coming months will require careful consideration of —
- market dynamics
- developer reputations
- long-term value propositions
Despite the anticipated increase in supply, some analysts predict that the market will remain undersupplied until 2027/2028. Dubai’s property market will remain a focal point for global investment; industry players and investors will keenly watch its future trajectory.
