Dubai Real Estate Poised for Boom in 2027

After Slowed Deliveries, Expect Real Estate Boom in Dubai by 2027

Dubai's real estate market has experienced remarkable growth in recent years. The continuously rising demand has driven property prices and rental fees to unprecedented heights, while transaction volumes have also reached new records. However, this dynamic rise might be followed by a brief pause: the residential property deliveries planned for 2025 and 2026 are expected to fall short of expectations, before a significant surge rebounds in 2027.

Restricted Housing Deliveries in the Next Two Years

According to a recent report, in 2025, only 22,896 of the forecasted 37,171 residential units are expected to be completed, which represents a completion rate of just 62 percent. For 2026, an even lower rate of 48 percent is estimated: of the planned 71,613 units, only 34,740 might be delivered. This could result in a total of 57,636 new residential units over the two years, representing only 53 percent of the 108,784 planned units.

This trend is not new. A previous assessment indicated that only 56 percent of projects were realized between 2022 and 2024. Several factors are behind the delays: difficulties in finding skilled contractors, financing delays, sales scheduling, and issues with installment payments by buyers.

Demand Remains Strong

While delivery pace slows, demand remains high: in 2023, for instance, over 226,000 property transactions were recorded, totaling 761 billion dirhams. This marks an annual increase of 36 percent in volume and a 20 percent rise in value. More and more developers are entering the market, but competition for the right contractors is intensifying, given the high number of projects initiated in recent years.

Where to Expect Most New Homes in 2025–26?

The report covering the 2025–2027 period highlights several key areas where concentrated deliveries are expected in the coming years.

In 2025, the main locations for housing deliveries will be:

Studio City

Sobha Hartland

Jumeirah Village Circle (JVC)

Jumeirah Lake Towers (JLT)

Al Furjan

In 2026, new residential properties are likely to appear primarily in:

Jumeirah Village Circle (JVC)

Azizi Venice

Damac Lagoons

Business Bay

Arjan

2027: A Surge on the Horizon

Following the current restrained delivery pace, a significant surge is expected in 2027: estimates suggest 70,537 residential units could be completed, nearly double the annual average of 35,531 units over the past five years. This sudden surge in supply could significantly influence prices and the supply-demand balance.

The highest concentration is expected in the following areas:

Jumeirah Village Circle (JVC)

Business Bay

Azizi Venice

Dubai Hills Estate

Creek Harbour

JVC stands out: over the three-year period, 16,852 new homes are expected to be delivered here. Business Bay follows with 10,127 units, and Azizi Venice with 7,860 units. In these districts, the strong supply increase could even lead to price corrections, especially if demand does not keep pace with the number of new homes.

What Can We Expect?

The next two years will pose challenges for both developers and buyers. Despite construction delays, the market remains attractive, driven by the city's dynamic economy, business opportunities, and internal and external housing demand.

However, from 2027 onward, a new era could begin where the supply side predominates, requiring investors and developers to better assess pricing and sales strategies.

(The article is sourced from a report by Morgan’s International Realty.)