Dubai’s residential property market is poised for significant changes in the coming years, driven by a substantial increase in supply. With over 243,000 new units in the pipeline for delivery by the end of 2027, apartments will dominate the future inventory, accounting for about 80% of these units. Key areas such as Jumeirah Village Circle, Business Bay, and Azizi Venice are set to receive a large number of these new units, which will likely stabilize property prices and rents. This influx of supply is expected to slow down the rapid price increases seen over the past few years, which have been driven by high demand.

The start of 2025 has seen a slight correction in property prices, with a 0.57% decline in January marking the first drop in over two years. Despite this, the market remains robust, with periods of consolidation necessary for sustainable growth. Off-plan projects continue to attract significant interest, with major developers like Emaar, Binghatti, and Damac leading the market. The demand for these projects is fueled by international interest from countries such as India and China.

Dubai’s property market has experienced consistent growth since 2022, driven by international demand and strategic development projects. However, there are signs of an adjustment towards more sustainable growth levels to avoid market instability. Regulators and developers are taking steps to ensure that the market does not experience runaway growth, which could threaten its stability.

In terms of specific developments, Mohammed Bin Rashid City led the way in 2024 with the delivery of 5,300 new homes, followed closely by Jumeirah Village Circle and Business Bay. The ongoing supply of new units is expected to continue supporting market growth while maintaining a balance between supply and demand.

The future outlook for Dubai’s real estate market suggests continued growth, albeit at a slower pace than in previous years. The focus on sustainable development and the introduction of new supply will play crucial roles in shaping the market’s trajectory in 2025 and beyond.