As Dubai real estate heads for another new peak in 2024, property sector growth is set to continue over the next two years, with a record 90,000 new homes.
The vibrant tapestry of Dubai’s real estate market is poised for a burst of growth, projecting an upsurge in the construction and property sector for the next few years.
The latest forecast suggests a bustling horizon for the industry, with expectations to inaugurate 90,000 new homes by 2024.
An in-depth look into current activities shows that there are 1,034 construction projects actively underway. These projects collectively promise the addition of a staggering 288,020 units to Dubai’s skylines. This robust pipeline of developments underscores the industry’s capability to synchronise effectively with the incessant demand for residential and commercial spaces.
The precedent set in 2023, with a record-setting 101,654 units introduced, is likely to be surpassed. The current count for 2024 is already at 99,779 and continues to rise steadily. Firas Al Msaddi, CEO of fäm Properties, voices his perspective on the matter. Speaking at an upcoming event, he reveals comprehensive insights about the state and strategy of the real estate sector.
“The influx of new properties reflects Dubai’s robust commitment to expansion and growth,” says Al Msaddi.
Dubai: industry challenges and strategies
The timeline is short, with 41,800 new units anticipated in 2025 and a further increase to 48,400 by 2026. This sustained growth trajectory not only speaks volumes about the current economic environment but also sets the stage for future developments.
Relentless development activity is expected to continue well into 2027 and beyond, fueled by projects that will commence from 2025 onwards.
Firas Al Msaddi adds, “The market’s ability to keep up with demand is also shown by the consistency we’re seeing in the volume of yearly launched properties. The total soared by more than 81% year on year in 2023, and that level is being matched this year.”
Current progress and future supply
Taking place this week at the Coca Cola Arena on Thursday, the summit — dubbed The Game Changers – Dubai Real Estate — is designed to provide aspiring professionals with expert advice on succeeding in Dubai’s
competitive real estate market.
At the event, Al Msaddi, will attend alongside notable experts such as Ryan Serhant, a top US broker and reality TV star, and Dr Mahmoud AlBurai from Dubai Land Department’s Senior Director for Real Estate Policies and Innovation. They will explore the future dynamics of Dubai’s real estate landscape.
These include geopolitical issues and logistic hurdles such as supply chain delays, increased shipping costs, and broader geopolitical tensions pose significant challenges.
However, Al Msaddi explains that development management teams remain undeterred, striving relentlessly to ensure timely project completions.
“The sector is grappling with significant logistics challenges,” he says. “Despite these challenges, real estate development management teams are working tirelessly to ensure that projects are delivered on time.”
The leaderboard for the most units delivered in the current year is fronted by Al Merkadh, highlighting a substantial completion of 4,052 units. Close on its heels are Jumeirah Village Circle and Jebel Al First, among others, marking milestones in their respective developments. As for future prospects, locations such as Business Bay and Dubai South are forecasted to be hotspots for incoming supply, enshrining their spots on the list of areas with the highest potential for growth.
The unyielding pace at which Dubai’s real estate sector is evolving paints a promising picture of its future. “With the rapid growth that we’re seeing, real estate developers and contractors are facing increasing pressure to streamline their procurement processes,” concludes Al Msaddi.
