Dubai Facing A Major Undersupply Of Properties?

The journey to your dream home: The challenge of undersupply of homes that buyers are facing when searching for their next property.

It is no surprise that Dubai's property market has been booming, but are developers running out of the clock to meet the rising demand and undersupply of properties? With an influx of residents looking for ready-to-move-in properties, industry executives have predicted a shortage of villas and townhouses in Dubai over the next three years. 

Recent reports have shown Jumeirah Village Circle as one of the most desired areas in Dubai and according to Allsopp & Allsopp proprietary data, your desires might be left unmet. According to Allsopp and Allsopp’s latest data, Jumeirah Village Circle currently has 55 listed properties for sale, with only 3 of those properties available on transfer. This is a roughly 5% availability for those who want to call the latest trendiest area home.

Furthermore, in areas such as Downtown #Dubai, where Allsopp & Allsopp Group has 131 listed properties for sale, only 31 don't have a tenant occupying them and are available to move into on transfer. For the sought-after Jumeirah Golf Estates, the number disparity is even higher, with 70 listed properties and only four available to move into on transfer. What does that mean to all those focusing on property purchases and looking into entering their desired new homes? At a minimum, a year’s notice of wait from the purchase period. 

The numbers gap will continue to rise. In January alone, Allsopp & Allsopp proprietary data has shown that the number of registered clients, those seeking a new property to buy or rent, were of almost 7,000 applicants versus a total of 1,998 listings. This means that for each new listing, there were, on average, almost four applicants waiting to find their desired property. What are developers and the market overall doing to tackle the undersupply? 

Lewis Allsopp says “ We see the government and the private sector working tirelessly together to meet such demands with latest announcements of major joint ventures such the one of master developer ALDAR and Dubai holding announcing 9,000 residential units for 2023 alone with additionally a total of over 27,000 residential properties launched in 2023, meeting His Highness Sheikh Mohamed Al Maktoum 2040 plan, which aims to increase the population from 3.5 million to 5.8 million in the next seven years. It is an exciting time for us living and breathing real estate in Dubai.” 

It is imperative that all forces combined in the real estate sector prioritize addressing the undersupply of housing in Dubai to maintain the city's growth and success. Only through concerted efforts and a proactive approach can we ensure that Dubai remains an attractive destination for residents and investors alike.