Dubai's Housing Boom: 44,000 Homes by 2025

Over 44,000 New Homes to Be Built in Dubai by 2025 - Largest Residential Handover in Five Years

Dubai's real estate market is set to reach another significant milestone in 2025: by the end of the year, more than 44,000 new residential properties will be handed over, marking the largest volume in the past five years. According to the latest report from Cushman & Wakefield Core, this growth is primarily due to the completion of projects initiated in the post-pandemic period, reflecting the needs of the city's rapidly expanding population.

Strong Supply Cycle and More Balanced Market

The residential property sector is clearly in an intensive supply phase. In the third quarter of 2025, over 7,800 residential units were handed over, with a further 14,900 homes expected to be completed in the fourth quarter. Thus, the annual output will reach 44,000 units, which is not only a significant number but also an important signal towards market maturity.

Analysts suggest that Dubai's housing market is becoming more balanced. Along with the record number of new completions, the city's continuously growing population ensures that demand remains steady. At the same time, it is becoming increasingly clear that factors such as location, construction quality, and developer reliability play a crucial role in how a project performs in the market.

A Bigger Handover Wave Expected in 2026

The report also forecasts even higher numbers for 2026: more than 69,000 new residential units are expected. This is due to the large-scale developments announced between 2020 and 2022 reaching completion stage. While demand remains strong, the increase in supply is expected to gradually moderate market prices and rents, creating a more stable, predictable environment for investors and homebuyers.

Prices and Rents: Gradual Moderation Expected

According to the Bayut real estate portal, the growth in housing prices shows signs of slowing as new supply increasingly balances demand. In the third quarter of 2025, the citywide average home price in Dubai reached 1,871 AED per square foot, representing a 13 percent annual growth. However, the pace of growth is particularly moderating for apartments.

Premium villa areas such as Palm Jumeirah, Dubai Hills, The Springs, The Meadows, and Jumeirah Village Circle continue to perform exceptionally well, with typically double-digit price increases. These areas are characterized by limited supply and strong end-user demand. In contrast, middle-tier residential areas, particularly in the apartment segment, show signs of saturation, with annual price increases being only marginal.

Impact of the Dubai 2040 Urban Master Plan and Agenda D33

Dubai's long-term strategies, such as the Dubai 2040 Urban Master Plan and the Dubai Economic Agenda D33, have a significant impact on the real estate market. The goal is not only quantitative growth but also sustainability, the optimization of urban planning, and the improvement of quality of life. These programs provide direction for developers and ensure that residential areas have adequate infrastructure and green spaces.

The population already exceeds 4 million, and the diverse housing needs require increasing variety. Government programs encourage developments that cater to this diversity—be it studio apartments, family villas, or luxury penthouses.

Reaching a New Level of Maturity

The real estate market is slowly but surely entering a more mature, stable era. Over-speculation is being replaced by long-term planning and quality-oriented investments. Buyers are becoming more conscious, and investors more cautious. Districts with well-established infrastructure—such as Downtown Dubai, Business Bay, or Dubai Marina—remain sought after, while less central areas must adapt to the new competitive situation.

Who Benefits From the New Situation?

Developers who recognized changing market trends early and adapted to the demands are in a favorable position. Homebuyers who take into account not only price but also location, infrastructure, transportation links, and energy efficiency can also benefit.

Tenants also receive positive news: as supply expands, more opportunities arise to find more affordable rental properties, especially in the middle-tier segment.

Summary

Dubai's real estate market is reaching a milestone in 2025, progressing towards maturity rather than overheating. The completion of over 44,000 new residential units, followed by more than 69,000 expected the following year, demonstrates the emirate's development pace. The pursuit of balance, the prioritization of quality, and urban development aligned with long-term governmental plans provide a stable foundation for future residents and investors alike.

(Source: Opinions of real estate consultancy firms.)