Dubai’s robust housing supply to benefit buyers, tenants

Dubai’s robust housing supply to benefit buyers, tenants

Dubai’s buoyant residential market is poised to witness the handing over of more than 40,000 units in 2024 on the back of close to 100,000 new units launched in 2023.

The housing sector, which posted the largest annual price increase of 16.4 per cent in over a decade last year, will continue to add to the robust pipeline of supply that will be delivered in the years ahead, according to Property Monitor, a leading real estate technology and market intelligence provider.

The increasing supply of units over the next three to five years will see the supply-demand relationship gradually moving back in favour of buyers and tenants, putting downward pressure on pricing as new projects get completed and more units become available for occupancy, Property Monitor, said in a report.

“As both occupiable and future supply increases, population growth will be one of the key measures to watch. Dubai experienced slightly less than 3.0 per cent annual growth in population over 2023, with a relatively stable monthly growth trend of 0.25 per cent. To absorb upcoming supply this year and in the coming years, this rate needs to increase to avoid oversupply issues and progression into the downwards phases of the market cycle,”