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Tag: Dubai housing supply

  • Dubai’s 2026 Housing Pipeline Shows 83% Pre-Sale Absorption

    Dubai’s 2026 Housing Pipeline Shows 83% Pre-Sale Absorption

    Of the 96,585 homes due for completion in 2026, developers have sold 80,127 units, representing an absorption rate of 82.9 percent, according to market analysis from fäm Properties released on August 21. The figure includes 91,209 apartments with 82 percent absorption and 5,376 villas recording 95 percent pre-sales.

    Dubai currently has 564,072 residential properties under construction, with the majority scheduled for handover by 2028. Buyers have already purchased 425,863 of these units, delivering an overall absorption rate of 75.5 percent across the emirate’s development pipeline.

    Villas have attracted particularly strong demand. Of 68,297 villas currently being built, developers have sold 58,349 units, achieving an 85.4 percent absorption rate. Apartments account for the bulk of construction activity, with 495,775 units in progress and 367,514 already sold, representing 74.1 percent absorption.

    Communities Recording Full Absorption

    Data from DXBinteract shows that several communities have reached 100 percent absorption for units scheduled for 2026 delivery. Al Wasl recorded complete pre-sales for 637 apartments due this year, while villa communities including Wadi Al Safa 5 with 854 units, Nad Al Sheba First with 235 homes and Al Hebiah Sixth with 476 properties have sold their entire 2026 inventory.

    Palm Jumeirah has sold 93.5 percent of 2,397 apartments scheduled for completion in 2026, while Jumeirah Lakes Towers recorded 92.8 percent absorption across 2,324 units due for handover this year.

    Downtown Dubai has 6,248 apartments under construction with 92.2 percent already sold. Among the 3,981 apartments scheduled for handover there in 2026, the absorption rate rises to 96.6 percent. Business Bay maintains a pipeline of 30,317 apartments currently being built, of which 82.8 percent have been sold, with absorption reaching 88.7 percent among the 16,938 apartments due for delivery this year.

    Investors commit to buying properties before completion because they have confidence in Dubai, its transparent regulatory framework and the consistent quality being delivered by developers.

    Firas Al Msaddi, CEO of fäm Properties, attributed the strong pre-sales to buyer confidence in the emirate’s regulatory environment and developer track record.

    Villa Communities Lead Absorption

    Several villa locations are recording absorption rates above 94 percent across homes still under construction. Al Hebiah Fifth has sold 98.7 percent of 2,060 villas, while Nad Al Sheba First reached 98.2 percent across 1,569 units. Wadi Al Safa 5 recorded 96.4 percent absorption across 8,216 villas, while Al Yufrah stands at 94.7 percent across 6,429 units and Dubai South at 94.5 percent across 5,698 properties.

    Other areas showing high apartment absorption rates include Ras Al Khor, where developers have sold 93.5 percent of 6,950 units, and Al Barsha South 2, where the rate stands at 85 percent across 12,655 apartments.

    The high absorption rates coincide with accelerating supply. Dubai completed 24,537 new units in the first half of 2026, up 36 percent from 18,043 during the same period in 2025. A total of 104 real estate projects were completed during the six months, compared with 75 in the first half of 2025, an increase of 38.7 percent. Their combined investment value exceeded Dh111 billion, up 52 percent from Dh73 billion year-on-year.

    Completed built-up area increased 23.4 percent to 1.95 million square metres, compared with 1.58 million square metres in the first half of 2025. The value of land allocated to projects rose to Dh19.46 billion from Dh8.27 billion a year earlier, marking a 135 percent increase.

    Al Msaddi noted that Dubai’s population, which has surpassed 4.58 million, and its base of more than 80,000 millionaires continue to support demand across residential segments. The absorption figures indicate that buyers remain confident in committing capital to properties ahead of completion, underpinning developer cash flows and sustaining construction activity across the emirate’s expanding development sector.

  • Alabbar: Dubai Property Market Remains Strong Despite Regional Tensions

    Alabbar: Dubai Property Market Remains Strong Despite Regional Tensions

    Dubai’s real estate sector remains fundamentally strong as global capital continues to flow into the emirate, according to Mohamed Alabbar, who told CNBC that the UAE’s long-term development strategy and stable leadership have created an environment that withstands external pressures.

    “It’s the global business hub, and its success, its limelight, its reflection of what life should be and what success should be, what prosperity should be, what positive you should be is this place,” Alabbar said, adding that attempts to undermine that success will ultimately fail.

    Fundamentals Built Over Four Decades

    Alabbar acknowledged that social media speculation can amplify fears during periods of geopolitical tension but emphasized that the UAE’s track record demonstrates consistency and wisdom. “If you were to look and study the trajectory of UAE policies, you will see consistency, you will see sustainability, you will see wisdom, you will see stability,” he stated.

    According to the Emaar founder, the country’s leadership has spent more than 40 years building systems designed to deliver prosperity for residents and investors. Recent events have only reinforced confidence in the nation’s safety and infrastructure, he noted.

    “I promise you what happened will only strengthen what this country is all about.”

    Capital Flows Accelerate, Not Reverse

    Addressing concerns that capital moved to the UAE during global crises could now begin to leave, Alabbar pointed to recent market performance as evidence of sustained confidence. “If you were to look at the past two years, just look at our business, the real estate business alone, we had an increase of almost 70% in 2023, we had 40% in 2024, we have another 40% in 2025,” he said.

    The developer said sophisticated investors recognize the strength of the UAE’s fundamentals and are likely to deepen their commitments rather than pull back. Dubai’s real estate market recorded AED2.46 billion in transactions on March 2, 2026, demonstrating sustained activity levels.

    “Smart capital understands that a country like this, with all these principles and stable leadership and the safety that it has shown that it can deliver,” Alabbar said. “People with true capital understand this and they appreciate this and they will double down on investing anyway.”

    No Signs of Market Weakness

    Alabbar said current demand shows no indication of softening. He recounted his own recent experience searching for an apartment in Dubai: “Myself, I’m looking for one building, one apartment overlooking the sea that I didn’t buy in, and the past two days I’ve been looking and it seemed like nobody want to budge. Nobody want to give a discount.”

    That reflects a market where sellers remain confident and demand stays firm. While consumer confidence may soften temporarily during periods of uncertainty, the country’s policies tend to restore confidence quickly, he added.

    Correction Forecasts ‘Unrealistic’

    Some analysts have warned that Dubai’s property market could face a correction as new supply enters the market, with Fitch Ratings recently suggesting prices could decline by up to 15%. Alabbar dismissed that scenario as unlikely.

    “I know my business well. I know the banking, I know the business environment, because I operate in multi industries,” he said. “The banking system is so strict, amazing discipline. Government policies are just getting better and better. I have no concerns.”

    Asked directly whether a 15% correction was realistic, Alabbar was unequivocal: “In my opinion, the way I do, the way I look at my business and listen, I look at so much data, I think it’s very unrealistic.”

    Recent high-value transactions support his assessment. Dubai recorded a Dh422 million apartment sale at Aman Residences on March 5, 2026, marking the third most expensive apartment transaction in the emirate’s history.

    New Supply Could Stabilize Growth

    Dubai is preparing for a wave of new property supply expected in 2026 and 2027. Alabbar said additional inventory could benefit the market by preventing prices from rising too quickly and maintaining the city’s competitiveness.

    “I said this a year ago. The supply that’s coming in in 2026 and 2027 will be good for the market,” he stated. “We are not here for the short run. We are here for a long time to do business.”

    The developer said he prefers a market where property prices rise gradually—around 5% to 6% annually—rather than experiencing sharp spikes that could undermine long-term stability. “Jacking up prices too high doesn’t benefit anybody,” he said.

    Real estate costs play a significant role in inflation, contributing approximately 50% to 52% of overall price increases, Alabbar noted. Maintaining balanced growth helps both investors and residents. “We don’t also want investors and people who come here for their jobs to really feel that the city is too expensive,” he added.

    Long-Term Stability Over Short-Term Gains

    Alabbar said the goal for Dubai’s property sector should be stability rather than aggressive price increases. Developers are already generating strong returns at current price levels, and maintaining balanced growth will help sustain Dubai’s appeal as a global destination.

    “Developers are making enough money with these prices. We should not shoot too high,” he said. “I want stability. I want long term.”

    A modest adjustment driven by new supply could help ease pressure on housing costs without undermining the broader market, he concluded. Emaar recently confirmed that UAE property sales reached Dh17.2 billion in the first two months of 2026, marking a 118% increase year-on-year.