Dubai: 44,000 new homes to be ready in 2025; highest in 5 years

Dubai will see 44,000 units being delivered in 2025, the highest in five years, as projects launched in the post-pandemic period are reaching their completion stage, according to the latest analysis by Cushman & Wakefield Core.

The real estate consultancy said that Dubai’s residential market is in the midst of a robust supply cycle, with a significant pipeline building in the near term.

In the third quarter of 2025, Dubai saw the delivery of over 7,800 units, with another 14,900 expected in the fourth quarter, bringing the annual total to 44,000 units, the highest in five years, it said.

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,” she added.

It is projected that 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,” the analysis added.

According to property portal Bayut, overall price growth in Dubai may moderate as a surge in new supply catches up with demand. Established areas are expected to remain popular, supported by strong infrastructure and sustained luxury demand. With the city’s population now exceeding four million, demand spans all property types, perfectly aligning with long-term government initiatives such as the Dubai Economic Agenda D33 and the Dubai 2040 Urban Master Plan, which continue to shape the emirate’s sustainable growth and urban development.

“It’s quite evident that the Dubai real estate market is entering a new phase of maturity and stability. While overall price growth is moderating thanks to increased supply and measured investor sentiment, well-established communities continue to perform strongly, supported by robust infrastructure and sustained demand,” said Haider Ali Khan of Bayut.

Data from the Cushman & Wakefield Core showed that city-wide residential sales prices in Dubai reached Dh1,871 per sqft in the third quarter of 2025, up 13 per cent year-on-year, but growth is clearly slowing, particularly in the apartment segment.

“With a 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 year-on-year gains. As the market moves into a more balanced phase, pricing will increasingly be driven by fundamentals such as location, quality, and developer profile,” it said.