Dubai: Fitch Ratings forecasts a moderate correction in Dubai’s property market starting in H2 2025, with price drops capped at around 15%. Despite the cooling trend, the outlook remains stable, with UAE banks and developers deemed well-prepared to handle the shift.
Why the Dip?
Following a nearly 60% surge in residential prices from 2022 to early 2025—fueled by immigration and investor activity—Dubai is facing a wave of new housing supply. About 250,000 units are expected to be delivered between 2023 and 2026, with 120,000 units set for 2026 alone.
This supply influx is likely to exceed the city’s annual population growth rate of 5%, leading to softer rental yields. Rental growth has already slowed, easing by 30 basis points to an average of 7.4% between H2 2024 and Q1 2025.
Source : Gulf New
