RESIDENTIAL SUPPLY: STRONG PIPELINE AHEAD
Dubai’s residential market is in the midst of a strong supply cycle, with 2025 set to be a pivotal year. A total of 42,800 units are expected for delivery, including 18,900 already completed and a further 23,900 due in H2 -the highest annual total in five years. This marks a 42% increase on 2024’s 30,200 units. Much of this near-term pipeline stems from project launches over the past 3–4 years now reaching delivery stage. While oversupply concerns are not immediate, the volume of new stock, underpinned by solid demand, is expected to temper the market, a trend already visible in the softening of both price and rental growth.
SALES PRICES: GROWTH MODERATING
City-wide residential sales prices in Dubai reached AED 1,822 per sqftin Q2 2025, reflecting a 14% YoY increase. However, the pace of growth is clearly moderating, especially in the apartment segment. With a steady pipeline of new supply coming to market, further price deceleration is likely. That said, villa communities such as Dubai Hills, Arabian Ranches, and Palm Jumeirah continue to outperform, supported by limited supply and resilient end-user demand. In contrast, mid-market apartment districts are showing signs of saturation, with only marginal annual gains. As the market moves into a more balanced phase, pricing will increasingly be shaped by fundamentals: location, quality, and developer track record.
RENTS: EASING INTO STABILITY
Rental growth has slowed, with average city-wide rents rising 7% YoY -a noticeable cooling from the double-digit increases seen in previous years. This reflects a market adjusting to increased supply, affordability constraints, and the influence of the RERA rental index.
Looking ahead, rental gains are expected to remain modest, with the expanding inventory and stable demand helping to restore equilibrium to the leasing market.
