Dubai’s Population Surge Outpaces Property Supply
DUBAI’S POPULATION GROWTH IS OUTPACING ITS PROPERTY SUPPLY BY A WIDE MARGIN
Dubai is currently facing a critical challenge in its housing sector, as the supply of residential properties struggles to meet the pace of its rapidly growing population. This has led to a noticeable shortfall in both affordable and upscale housing options. Experts in the industry predict that this trend is likely to continue into 2024. The increasing number of foreigners moving to Dubai, coupled with local residents opting for homeownership due to rising rental costs, is exacerbating the supply-demand imbalance. The issue is particularly severe in certain areas of the emirate, where the discrepancy between the need for housing and its availability is especially pronounced.
In 2023, Dubai welcomed the construction of 50,000 new residential units, which addressed nearly half of the population growth for that year. However, the population of the emirate still surged by over 100,000, surpassing 3.65 million by mid-December, according to the Dubai Statistics Center. This population boom, largely driven by the influx of foreign professionals, workers, and investors drawn by attractive investment returns and diverse residency permits, has led to a substantial increase in the demand for residential real estate. The Dubai Land Department’s data reflects this trend, indicating a 33.8% increase in real estate transactions, with 116,116 transactions valued at Dh429 billion recorded in just the first nine months of the year.
In 2023, Dubai welcomed the construction of 50,000 new residential units, which addressed nearly half of the population growth for that year. However, the population of the emirate still surged by over 100,000, surpassing 3.65 million by mid-December, according to the Dubai Statistics Center. This population boom, largely driven by the influx of foreign professionals, workers, and investors drawn by attractive investment returns and diverse residency permits, has led to a substantial increase in the demand for residential real estate. The Dubai Land Department’s data reflects this trend, indicating a 33.8% increase in real estate transactions, with 116,116 transactions valued at Dh429 billion recorded in just the first nine months of the year.
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