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Dubai's property market requires up to 20% additional supply to manage increasing rents.
Dubai’s property market requires an additional 10-20% supply to reduce rising rental prices and improve affordability, according to a senior industry executive.
Imran Farooq, CEO of Samana Developers, stated, “Dubai needs 10-20% more units than current demand, as increasing rents are making housing more expensive. There is an undersupply, with new launches selling out within a day.”
He noted that his company sold 80% of its stock in just 72 hours, highlighting that leading developers are selling out their inventories in mere hours, indicating that demand significantly outpaces supply. “This trend will continue as Dubai remains a strong performer in the market.”
Rents have consistently risen over the past few years, driven by high demand from both buyers and tenants. Major developers like Emaar Properties, Nakheel, and Damac Properties dominate the market, collectively accounting for about 90% of new launches.
According to the latest Property Monitor report by Cavendish Maxwell, nearly 86,000 off-plan units were launched in the first eight months of this year, with an additional 35,000-40,000 expected by year’s end, bringing the total to around 126,000 for the year. While this influx may help ease rising prices, experts warn that it will take years to achieve a balance between supply and demand.
Farooq emphasized, “Landlords are unconcerned as properties are renting quickly at market rates, often fetching Dh5,000 more within a week. To make Dubai more affordable, we need to increase supply and stabilize the market.” He pointed out that the top nine developers account for 90% of sales and urged mainstream developers to ramp up production, noting that all developers are currently operating at full capacity.
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