Dubai’s property market has been red hot over the past few years, driven by demand from foreign professionals, relaxed visa rules, and a weaker USD — which JLL’s Taimur Khan has said is “the biggest market driver” this year, boosting European buying power, Bloomberg reports. Supply is surging, with nearly 250k new homes set for completion in the next few years, a 30% jump, as scores of new developers enter the fray. The verdict on what this means for the emirate’s market is mixed.

Critics warn of overheating: “Almost every week, we meet three new developers that we’ve never heard of before,” said Sean McCauley, CEO of consultancy Devmar, adding that rising land costs are making it “increasingly hard to make the math work.” The city still bears scars from past overbuilding, such as state-backed Nakheel’s stalled USD 13 bn The World islands project, which stalled after the 2008 crash.

Supporters see firmer ground this time: Mortgage lending is capped at about 80% of a home’s value, developers must pay for land in full before building, and most buyers are “genuine buyers rather than speculators,” said Knight Frank regional MENA partner Will McKintosh. Less than 5% of buyers resell within a year, compared to 25% in 2008.

REMEMBER- Dubai’s real estate market saw another record number of transactions in 1H 2025, up 25% y-o-y to AED AED 431.2 bn. Prices rose 16.6% y-o-y over the same period.

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