Dubai needs cheaper housing

In 2023, about 40,000 projects have been implemented within the Dubai real estate market, with most of them belonging to the luxury real estate segment. Experts believe that the rapid development of the market towards the premium segment will lead to developers ignoring more affordable housing. In the future, this trend may have a negative impact on the purchasing power of certain categories of citizens.

According to statistics, 64% of real estate purchases since 2020 have been made to the amount of less than AED 3M (USD 817K). This indicates the greater popularity of housing in the middle price segment. Experts believe that if developers strive to build more luxury complexes, there may be an imbalance in supply.

Dubai needs more affordable housing, given the expected population growth from 3.5M to 5.5M by 2030. In the coming years, there will be a growing demand for family-oriented communities such as Arabian Ranches and Tilal Al Ghaf. Experts believe that these types of communities need a serious expansion of mid-segment projects to stabilise the real estate situation in the emirate.