Dubai’s property market is currently facing a shortage of supply, with rental prices on the rise due to high demand. Imran Farooq, CEO of Samana Developers, suggests that an additional 10-20 per cent supply is needed to address this issue and improve affordability in the city. He highlights that new property launches are selling out quickly, indicating a significant demand-supply imbalance in the market.
Major developers such as Emaar Properties, Nakheel, Damac Properties, and others have been leading contributors to the property market, accounting for the majority of new launches. The influx of new properties, with nearly 86,000 off-plan units launched in the first 8 months of the year, is expected to continue over the next few years. However, industry experts believe that it will take time for supply and demand to balance out and for rental prices to stabilize.
Rents have been steadily increasing over the years, with properties being rented quickly at market rates. Landlords are able to rent their properties for higher prices within a week, highlighting the strong demand in the market. Imran emphasizes the need for stability in the market and suggests that increasing supply is essential to make Dubai more affordable.
Despite the increasing demand and limited supply, Imran Farooq believes that all developers are doing a good job in the market. He points out that the top 9 developers are responsible for 90 per cent of sales, and mainstream developers need to step up further to address the supply shortage. With the market currently undersupplied, the rise in rents needs to be controlled to make Dubai more affordable for residents and investors.
The property market in Dubai continues to perform exceptionally well, with new launches selling out quickly and demand outpacing supply. Industry experts believe that it will take several years for the market to reach a balance between supply and demand. As more properties come online in the coming years, there is hope that rental prices will stabilize and affordability will improve. Overall, increasing supply is seen as the key solution to address the rising rental prices and enhance affordability in the city.
