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Dubai's property market set for 171% rise in completions in 2025

#International News#United Arab Emirates
Last Updated : 6th Feb, 2025
Synopsis

Betterhomes' FY2024 Dubai Real Estate Market Report highlights significant shifts in the city's residential real estate market. Supply was limited to approximately 27,000 units in 2024 due to project delays, but 2025 is set to witness a 171% increase, with 72,365 units expected to be completed. The market saw a surge in off-plan projects, with over 470 launched throughout the year. Key areas such as JVC, MBR City, and Business Bay remained in high demand. The market is projected to stabilise by 2026 as new units are absorbed. Q4 2024 saw notable completions like Binghatti Onyx and Nara at The Valley.

Betterhomes has unveiled key insights from their FY2024 Dubai Real Estate Market Report, offering an in-depth analysis of the city's residential sector. The year 2024 saw a marked change in supply trends as developers faced delays, with overall completions capped at around 27,000 units. This was a significant deviation from initial expectations. Consequently, the outlook for 2025 is more promising, with developers set to complete a record 72,365 units-a substantial 171% increase from 2024.


The off-plan sector also thrived, with over 470 projects launched throughout 2024, equating to more than one new project per day. This development is reflective of Dubai's continuous growth, driven by strong demand in the off-plan sales market. Developers are increasingly focusing on sustainable and affordable housing, aiming to cater to both the city's expatriate community and global sustainability initiatives.

In terms of project composition, apartments accounted for the largest portion of completions in 2024, representing 77%, while townhouses and villas made up 17% and 6%, respectively. This preference for vertical living is expected to continue into 2025 as Dubai's urban population grows. Key areas like Jumeirah Village Circle (JVC), Mohammed Bin Rashid City (MBR City), and Business Bay remain the focal points for both investors and end-users. For the first quarter of 2025, Sobha Hartland, Arjan, and JVC are expected to contribute 41% of the units scheduled for handover.

Looking ahead, the property market is anticipated to stabilise by 2026, as approximately 163,000 new units are set to be absorbed between 2025 and 2026. Although slight price fluctuations may occur, the underlying market fundamentals, strengthened by economic growth and strategic investments, are expected to maintain investor confidence.

In the fourth quarter of 2024, several key projects were completed, including Binghatti Onyx in JVC District 15, with 438 units, Nara at The Valley by Emaar, with 372 units, and MBL Royal Residences in JLT by MAG Group, with 330 units.

The report underscores Dubai's resilient real estate market, driven by strong demand, innovative urban planning, and strategic investments in infrastructure.

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