Dubai is entering a period of high supply in real estate between 2025 and 2027, with analysts forecasting more than 150,000 new homes in the pipeline. This surge in residential stock will impact both off-plan projects and the secondary market, creating new dynamics for investors, developers, and homeowners.
High Supply Forecast: What Experts Are Saying
According to Moody’s and Fitch Ratings, Dubai is set to deliver over 150,000 new homes in the next two years, potentially equal to 20% of the current housing stock.
This expansion reflects developer confidence and investor appetite. However, it may also put short-term pressure on prices and rental yields in certain communities. Developers are already launching new off-plan projects with attractive payment plans to capture early demand.
Impact on Off-Plan Projects and Secondary Market
- Off-Plan Projects: Investors are drawn to early-bird pricing and phased payments, making off-plan one of the most attractive ways to enter the market.
- Secondary Market: Ready properties will face tougher competition, but well-located homes in Dubai Marina, Downtown, and near metro hubs will remain resilient.
Opportunities for Investors
For investors, high supply means more choice. Off-plan buyers can secure units in emerging master communities with long-term growth potential. Meanwhile, the secondary market may offer bargains, particularly in oversupplied areas.
Projects from trusted developers like Emaar Properties and Sobha Realty are expected to stand out, delivering both capital appreciation and rental demand.
Final Thoughts
The wave of high supply in Dubai real estate 2025–2027 is a double-edged sword. While some areas may face short-term oversupply, demand driven by foreign investors, expats, and Dubai’s growing population will help absorb much of the inventory. Strategic investors who evaluate both off-plan and secondary market opportunities can still achieve strong returns.
For more insights, visit our IR Real Estate Blog.