Developers Dismiss Oversupply Concerns in Dubai as Demand Remains Strong

Real estate developers in Dubai insist that demand for new properties remains consistently strong, dismissing concerns of an oversupply in the market.

Industry executives argue that the ongoing rise in residential property prices is clear evidence that the market is not oversupplied.

“Property prices are rising in Dubai and it looks like the boom will continue despite some tailwinds. Dubai has become a globally relevant city. When we compare Dubai to other major metropolitan cities around the world like Hong Kong, London, New York and Singapore, real estate is still cheaper here. There is no oversupply. If there was an oversupply, why would prices be rising in Dubai,” said Issa Abdul Rahman, CEO of Kasco Developments. “In a market where supply is at an all-time high alongside record transaction volumes, we are witnessing a clear trend of sustainable demand,” said Firas Al Msaddi, CEO of fäm Properties.

Prices in key areas of Dubai, including Palm Jebel Ali, Business Bay, Downtown, and Dubai Marina, have reached all-time highs.

According to the Allsopp & Allsopp Market Snapshot for October 2024, the average price of villas and townhouses has risen by 75% year-on-year, while apartment prices have increased by 55%.

Additionally, the Dubai Land Department reported that sales transactions in October exceeded 20,460 units for the first time ever, marking an unprecedented 82% year-on-year increase and confirming that Dubai’s real estate market continues to outperform expectations.