Dubai, UAE, November 4, 2025: Cushman & Wakefield Core has released its latest “Dubai Residential Marketbeat Q3 2025”, revealing that the emirate is undergoing its most active residential delivery cycle in five years, with a significant pipeline set to extend well into 2026.
According to the report, 44,000 units are expected to be completed by year-end 2025, representing the highest annual total since 2019, with an estimated further 69,000 units forecast for 2026 – an increase of more than 50% on what’s expected in 2025. This surge reflects the wave of launches from the past three to four years now reaching completion.
Population growth helps absorb new stock
While population growth continues to support absorption, the influx of new stock is leading to moderation in price and rental growth, particularly in the mid-market apartment segment. Average citywide rents have risen 6% year-on-year, marking a slowdown from the double-digit increases seen in recent years.
Prime areas remain resilient as rents stabilise elsewhere
Prime districts and established villa communities, however, remain resilient. Apartments in Downtown Dubai recorded 15% annual rental growth, and villas on Palm Jumeirah rose by 42%, underlining the sustained strength of high-end communities supported by limited supply and strong end-user demand.
Prathyusha Gurrapu, Head of Research and Consultancy at Cushman & Wakefield Core, said: “Dubai’s residential market is moving into a more balanced phase. The combination of record deliveries and continued population inflows is creating a market where fundamentals, such as location and quality, will increasingly determine performance. Prime areas will hold firm, while more secondary locations adjust to new levels of supply.”
Outlook: From rapid expansion to sustainable growth
The report indicates that while rental growth is moderating, the sales market remains comparatively stronger, with citywide prices up 13% year-on-year, against a 6% rise in rents. This resilience is reinforced by sustained off-plan activity, where the number of transactions in Q3 2025 was 25% higher year-on-year, reflecting continued confidence in Dubai’s residential market and robust demand for both newly launched and near-completion projects.
Looking ahead, prime districts are expected to maintain stability, while non-prime apartment areas may see selective price and rental softening as new supply enters the market. With record deliveries, expanding population, and steady investor sentiment, Dubai’s residential sector is transitioning from rapid expansion toward a more sustainable, demand-driven growth cycle.
