Dubai’s population growth outstripping property supply by far

Dubai’s population growth outstripping property supply by far

Published: Sun 17 Dec 2023, 3:02 PM Last updated: Sun 17 Dec 2023, 3:14 PM

Dubai's residential property market supply has been lagging behind population growth with the affordable segment also witnessing shortage after luxury in certain areas of the emirate.

Industry executives say that supply will not be able to keep pace with the demand even in 2024 due to the high influx of foreigners and residents increasingly turning buyers amidst rising rentals.

Around 50,000 new residential units were handed over in Dubai in 2023, which is nearly half of the population increase.

According to Dubai Statistics Center data, the emirate’s population grew by over 100,000 in 2023 to more than 3.65 million by mid-December, resulting in very high demand for residential properties.

The increase in population is attributed to the high inflow of foreign workers, professionals and investors who flocked to the emirate this year, attracted by the higher returns on investments and the introduction of a variety of residency permits.

This was reflected in the Dubai Land Department’s 9-month data which showed the number of transactions jumped by 33.8 per cent to 116,116 worth Dh429 billion.

There are areas of under-supply which have contributed to price growth in recent years, e.g. the villa market,