Picture for illustrative purposes only. ARCHIVE

Property prices and rents in Dubai are expected to remain stable for the next 18 months, with potential declines afterward due to rising supply from post-pandemic project launches, S&P Global analysts said on Monday (October 28). According to the international ratings agency, Dubai’s property market remains strong, unaffected by regional conflicts, due to high demand from local and international investors and recent visa reforms that add stability. The report noted that rental growth is expected to stabilise in 2025 as more units become available, starting in non-prime areas and then affecting the broader market. “Property prices will remain stable over the next 18 months and could decline afterward due to increasing supply. A potential increase in supply could saturate the unfulfilled demand, and lead to lower prices and rents. The market expects residential supply stock will increase by about 182,000 units over 2025-2026, given that the large number of properties that were presold over 2022-2023 will be delivered. This is significantly higher than the average of 40,000 units delivered per year over 2019-2023,” said Sapna Jagtiani, primary credit analyst at S&P Global. Rents and property prices in many areas of Dubai have steadily increased in recent years due to high demand in the post-pandemic period. FLE/Expat Media
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