The Dubai real estate market is under unprecedented pressure. According to the latest report by consulting firm ValuStrat, the emirate is adding nearly 1,000 new residents per day, far outpacing the rate of new housing supply.
As of March 2025, Dubai’s population reached 3.92 million, increasing by almost 90,000 people in just the first quarter. By comparison, the total net increase for 2024 was around 170,000. This rapid population growth is driving a shortage of available housing, especially in the mid-price segment.
Property Prices Climb Amid Surging Demand
The imbalance between supply and demand continues to push prices up. Over the past year, apartment prices rose by 21.4%, while villas surged by 30.3%. Rents also increased — by 10% for apartments and 5.1% for villas.
ValuStrat’s Managing Director Haider Tuaima commented: “It’s becoming increasingly difficult for buyers and renters to find affordable options. The market is shifting toward the luxury segment, pushing out the middle class.”
New Projects Underway, But It’s Not Enough
In 2024, only 27,000 housing units were delivered — the lowest in six years. While 61,580 units are expected in 2025, nearly 19% were already handed over in Q1. Still, demand continues to outstrip supply, particularly in key areas such as Jumeirah Village Circle, Business Bay, and Jumeirah Lakes Towers.
By 2029, over 170,000 units are scheduled for delivery, yet a recent drop in transactions and mortgage applications may signal an upcoming market correction.
Looking to Invest While the Market Grows?
With demand far outpacing supply, Dubai real estate is appreciating rapidly, making this a prime time to enter the market. Whether you’re investing or relocating — we can help you choose the right property.
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