Dubai’s population is set to proliferate from 3  million in 2024 to a projected 7.8 million by 2040. It is estimated that as many as 70,000 homes may be needed annually between now and 2028. But despite the tens of thousands of new homes, the market is still falling short of what it will need to cater to the growing population, putting upward pressure on prices. Dubai’s real estate market is thus experiencing a major housing boom, with tens of thousands of new villas, townhouses, and apartments set to be completed and handed over to buyers in 2024.

Despite the vast supply pipeline, real estate consultants predict property prices will continue to surge in 2024 amid strong demand from local and foreign buyers. There’s anticipation of a moderation in price appreciation, particularly in the ready single-family homes segment of villas and townhouses, while ready apartments, especially in established communities, are expected to see more pronounced growth rates. The off-plan sector remains dominant, with just over 11,500 new units added in January alone. According to the January Property Monitor report, apartments comprise 93.3 percent of the new inventory by volume, while townhouses and villas constitute 6.2 percent and 0.5 percent, respectively, projecting a combined gross sales value of $8.4 billion.

Improved infrastructure, such as the new Dubai Metro Blue Line extension, should further stimulate price growth in areas such as Dubai Silicon Oasis, Dubai Creek Harbour, and Ras Al Khor due to the enhanced transport link.

Beyond affordable housing, UAE residents are also increasingly desiring sustainable homes for the future. The country’s growing focus on sustainability is driving this change to further reshape the real estate landscape.