Around 34,000 Housing Units to Be Delivered to the Dubai Market in 2024

Analysts project continued growth in the UAE real estate market at least until Q3 2024, although forecasts become less certain beyond that point. There are indications of a global market cooling, evidenced by a decline in villa sales amid a chronic supply shortage in the emirate. In February, the year-over-year decline in sales was 55%. Despite this, demand persists, and transaction revenue is generally increasing across both luxury and affordable segments.

Developers in Dubai are increasingly focusing on apartment construction, yet they acknowledge the challenges facing the villas and townhouses segment. Plans are underway to bolster market supply, albeit to a limited extent. By the end of 2024, approximately 34,000 new housing units are expected to be built in Dubai, with an additional 8,000 units planned for Abu Dhabi. This figure represents a modest increase compared to the 100,000 units delivered in 2023.

Several factors suggest a further slowdown in the growth rate of the UAE property market next year, affecting transaction volume, value, and overall buyer demand. While this may help balance supply and demand, without proactive measures from developers, the real estate market in the emirate could shift towards a predominantly apartment-centric model.

Luxury properties and branded developments are likely to dominate construction focus, with a notable uptick in new project launches in this segment. Currently, residential properties priced around $800,000 are in high demand, while the ultra-premium market—homes priced over $10 million—is also experiencing growth. In 2023, 431 ultra-premium properties were sold, which is double the 2022 figure, reflecting sustained investor interest in this segment.