Dubai real estate sector to add 300,000 new units by 2028  

Aligned with the Dubai 2040 Urban Master Plan, the emirate’s real estate market is set to deliver over 300,000 new residential units by 2028, with 81,084 units slated for 2025 alone.

This influx ensures a healthy supply pipeline, positioning Dubai as a global hub for property investment while meeting growing demand from residents and investors alike. According to Provident Estate’s Dubai Property Market Report Q1 2025, the continuing property boom is driven by investor confidence, strategic urban planning, and a thriving off-plan sector.

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The first quarter of 2025 showcased unprecedented market activity. Transaction volumes soared to 42,273, a 50 per cent year-on-year increase, reflecting strong trust in Dubai’s real estate ecosystem. Sales values reached Dh114.15 billion, fuelled by both local and international capital inflows. The average sale price climbed to Dh2.7 million, underscoring Dubai’s maturation as a high-value market.

“Communities like Jumeirah Village Circle (JVC), Business Bay, and Al Furjan are leading the charge, offering diverse opportunities for investors and end-users,” said Laura Adams, secondary sales director at Provident Estate. The off-plan market dominated, with over 25,000 apartment units and 6,600 townhouse and villa units registered.

Flexible payment plans and competitive pricing from developers drove this momentum, particularly for compact apartments in growth areas like JVC, where studio and one-bedroom units led demand. The price per square foot for off-plan apartments hit Dh1,926, a 28.6 per cent increase from Q3 2024. Premium off-plan villa communities, such as The Valley and Palm Jebel Ali, also saw significant sales, with four-bedroom townhouses gaining traction among families.

The luxury segment continued its upward trajectory, with villa prices rising 13 per cent compared to Q3 2024, driven by demand for spacious, premium residences. According to market pundit, Dubai’s luxury market is thriving as high-net-worth individuals seek exclusive properties in prime locations.

Waterfront communities like Dubai Marina and Palm Jumeirah topped search trends for apartments and villas, respectively, while Dubai Hills Estate and Al Furjan also ranked highly for family-oriented townhouses. In the ready property market, demand for affordable and mid-market homes remained steady. One-bedroom apartments in JVC led transactions, followed by Dubai Marina and Business Bay. For townhouses and villas, Dama Lagoons, Damac Hills 2, and Dubai Hills Estate attracted buyers seeking lifestyle-driven environments.

Mortgage activity strengthened, with over 26,000 loans processed across property types, signaling robust financing options. Dubai’s strategic urban planning underpins this growth. The 2040 Urban Master Plan aims to enhance livability and sustainability, with investments in infrastructure and green spaces. The plan ensures Dubai remains a magnet for global investors while catering to residents’ evolving needs.

Data from the Dubai Land Department corroborates this optimism, reporting a 34 per cent increase in foreign investment in Q1 2025 compared to Q1 2024.However, challenges loom. Rapid development raises concerns about oversupply, particularly in the mid-market segment. Property consultants cautioned that while demand is strong, developers must balance supply to avoid price corrections.

They warned that rising interest rates could impact mortgage affordability, though Dubai’s flexible financing options mitigate this risk. The UAE’s economic diversification and investor-friendly policies, such as golden visas and relaxed ownership laws, continue to bolster the market.

In 2024, Dubai’s non-oil GDP grew by 3.9 per cent, per the Dubai Statistics Centre, supporting real estate resilience. As Dubai gears up to deliver 81,084 units in 2025, a blend of strategic supply growth, diversified demand, and robust urban planning positions the city for sustained success.

Issac John

Staff Writer

issacjohn@khaleejtimes.com

Issac John is Managing Editor at Khaleej Times and has over 45 years of experience in top-tier newspapers across UAE. A seasoned business writer and economic analyst, he brings unmatched insight into the geopolitics and geoeconomics shaping the Gulf and India.