The Dubai real estate market is witnessing a distinct preference for apartments, with a notable surge in supply, particularly outside prestigious areas, according to insights from Knight Frank. Projections indicate that by 2028, around 85,200 residential properties are anticipated to be completed, with apartments constituting a substantial 69%, equivalent to 59,000 units. Here's a detailed overview:
- Initially, around 40,000 residential properties were slated for completion in the current year.
- However, as of the second quarter in 2023, only 8,600 units were ready for occupancy.
- Analysts suggest that developers might defer the completion of 30% to 40% of the initially announced 85,200 units, aligning with common industry practices in Dubai.
- If the delivery target of 40,000 residential properties is achieved this year, an additional 42,500 units are expected to be completed between 2024 and 2028.
- This reflects an average annual commissioning rate of 8,500 units.
- Notably, there is a 75% decrease in the long-term commissioning rate for residential real estate, strategically influencing apartment prices amid population growth that recently surpassed 3.5 million inhabitants in Dubai.
- The Aykon City complex in Business Bay is gradually nearing completion, featuring 3,145 planned lots in two towers.
- The Jumeirah Lake Towers (JLT) area will witness the commissioning of the Seven City project in 2027, comprising 2,700 apartments.
- Villa and townhouse supply are set to surge in 2026 with the completion of the Damac Lagoons project, boasting 5,100 residential units.
- Emaar Properties has several villa projects underway, mainly in MBR City and Arabian Ranches, totaling over 3,900 units set for completion by 2025.
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