Meeting the Demand for New Homes of Projected Rapid Population Growth

Dubai’s population is projected to reach 5.8 million by 2040, creating a high demand for new
homes. Each year, approximately 54,440 new homes will be needed to keep pace with this
growth, not to mention the ever-expanding tourism sector.

Despite numerous real estate launches throughout 2023, the city’s population growth continues
to outstrip the supply of new homes by growing 300% faster. This discrepancy underscores the
urgent need for large-scale developments by renowned developers like Emaar, Damac, and
Majid Al Futtaim. These projects aim to meet the high demand for villas and townhouses,
addressing the current housing shortage that is driving up rental prices.

The Dubai real estate market is facing an undersupply crisis even after the significant amount of
new property launches. Based on 2023’s population and the prevailing buying power, there is a
current deficit of 190,439 homes. Even with the influx of nearly 200,000 new properties
expected in the next five years, demand will continue to surpass supply.

Major projects such as Damac Hills, Mohammed Bin Rashid Al Maktoum City’s District 11, and
The Valley by Emaar are poised to offer luxurious living options with villas packed with
amenities.

Other developments, like The Oasis and Dubai South’s residential district, are geared towards
meeting the growing demand for family villas and luxury real estate in Dubai. These new
projects promise to bring much-needed relief to the housing market, but the pressure remains
high as Dubai continues to expand and grow