**RESIDENTIAL SUPPLY: STRONG PIPELINE AHEAD**
Dubai’s residential market is in the midst of a robust supply cycle, with a
significant pipeline building in the near term. Q3 2025 saw the delivery of
over 7,800 units, with another 14,900 expected in Q4, bringing the annual
total to 44,000 units, the highest in five years. Completions are expected
to rise further in 2026, with over 69,000 units anticipated. Much of this
near-term supply reflects the volume of projects launched over the past
three to four years now reaching completion. While strong demand
continues to support absorption and is expected to remain underpinned
by record population growth, the new stock is likely to gradually temper
the market, contributing to the ongoing moderation in both price and
rental growth.
**SALES PRICES: GROWTH MODERATING**
City-wide residential sales prices in Dubai reached AED 1,871 per sqft in
Q3 2025, up 13% YoY, but growth is clearly slowing, particularly in the
apartment segment. With steady new supply entering the market, further
price moderation is likely. Villa communities such as Palm Jumeirah, Dubai
Hills, The Springs, The Meadows, and Jumeirah Village Circle continue to
outperform with double-digit growth, supported by limited supply and
resilient end-user demand. In contrast, mid-market apartment areas show
signs of saturation, recording only marginal YoY gains. As the market
moves into a more balanced phase, pricing will increasingly be driven by
fundamentals such as location, quality, and developer profile.
**RENTS: EASING INTO STABILITY AS PRIME MARKETS OUTPERFORM**
Rental growth has moderated, with average city-wide rents rising by 6%
YoY, marking a clear slowdown from the double-digit increases recorded
in previous years. This trend reflects a market adjusting to rising supply,
affordability pressures, and the moderating effect of the RERA rental
index. The key exceptions to this stabilisation are apartments in
Downtown Dubai, which recorded a 15% YoY increase, and villas on Palm
Jumeirah, where rents surged by 42% YoY. These segments underscore
the continued resilience of prime residential districts, even as the broader
market trends toward equilibrium. Looking ahead, rental growth across
the wider market is expected to remain modest, supported by rising
inventory and steady demand