According to analysts at S&P Global on Monday, property prices and rental rates in Dubai are expected to remain stable for the next 18 months. However, they may start to decline afterward due to a surge in supply stemming from numerous new project launches that have occurred since the pandemic.
Property prices are projected to remain stable for the next 18 months, with the possibility of a decline thereafter due to rising supply levels. An influx of new units could outpace the existing demand, resulting in lower prices and rental rates. The market anticipates that approximately 182,000 residential units will be added between 2025 and 2026, as many properties that were presold during 2022 and 2023 are set to be completed. This figure greatly exceeds the average delivery rate of around 40,000 units per year from 2019 to 2023, according to Sapna Jagtiani, a primary credit analyst at S&P Global.
