Dubai needs 20% more homes to stop price surge!
Housing shortage sends rents soaring; can new properties arrive fast enough to ease the pressure?
Dubai: Dubai’s rental market continues to surge, with rents rising steadily due to an undersupply of housing. To curb these soaring prices and improve affordability, the city needs 10-20% more homes, according to Imran Farooq, CEO of Samana Developers, as quoted by Khaleej Times.
“Dubai urgently needs more units as skyrocketing rents are pricing people out,” Farooq said. "New launches are selling out within hours, highlighting the supply-demand imbalance."
With 86,000 off-plan units launched this year and another 40,000 expected by year’s end, the influx of new homes may ease prices, but experts predict it will take years to balance the market.
"Landlords aren’t worried; they’re renting out properties quickly, often for 5,000 dirhams more than expected,” Farooq noted, calling for more supply to stabilise the market.
Developers struggle to meet demand
Samana Developers sold 80% of its stock in 72 hours, while top developers sold out in just hours.
Major players like Emaar, Nakheel, and Damac dominate 90% of new launches.
Call for action on affordable housing
Farooq urged major developers to step up but warned that pushing them too hard could pose financial risks. “We need a sustainable increase in housing to keep Dubai affordable,” he added.