The Dubai property market is expected to avoid oversupply over the next four to five years, despite the high volume of recent project launches. This is due to strong demand, which is expected to absorb the new supply.
Rizwan Sajan, founder and chairman of Danube Properties, emphasized that while a significant amount of supply is entering the market, the number of investors coming to Dubai is equally high. He believes that Dubai’s attractiveness as a second home destination, along with the upcoming opening of the gaming resort in Ras Al Khaimah, will significantly boost tourism, further driving demand for properties.
Sajan noted that many tourists drawn to the gaming resort will stay in Dubai, increasing the need for both traditional properties and short-term rentals like Airbnb. He expects this influx will prevent oversupply and create opportunities for property owners to list their homes for short-term stays.
Additionally, he highlighted that Ras Al Khaimah may lack sufficient accommodation for the expected tourist boom, meaning Dubai will likely absorb much of the overflow. The Wynn Al Marjan Island project, the first integrated gaming resort in the region, is set to open in Ras Al Khaimah in 2027. Dubai’s real estate market stands to benefit greatly from this development.
The market has seen a surge in project launches post-pandemic, especially in 2023-2024, with local and international developers introducing new projects. Preliminary data from Cavendish Maxwell’s Property Monitor reveals that, on average, over one project launch occurred daily in early 2024, adding 10,000 units in March alone.
Despite the increase in property prices over recent years, Sajan dismissed concerns that Dubai has become unaffordable. He pointed out that Dubai’s property prices remain lower than those in major global cities. According to Savills Research, the average price per square foot in Dubai is $800, compared to much higher figures in cities like Hong Kong, New York, and London.
However, Sajan acknowledged challenges for developers, particularly in securing reliable contractors. He noted that Danube’s reputation and in-house supply chain help them complete projects on time. He also observed that smaller developers struggle to sell units as quickly as larger developers like Danube.
Source : khaleejtimes.com
