🏗️ Dubai Real Estate: 73,000 New Homes in 2025 as Market Braces for Potential Price Correction.

Dubai, UAE – July 21, 2025

Dubai’s real estate sector continues its record-breaking growth trajectory in 2025, with 73,000 new residential units set to be delivered before year’s end, according to recent data reported by the Times of India. This surge in supply is part of a broader development push to add 300,000 new homes by 2028, aiming to meet the city’s booming population growth and rising demand for diverse housing options.

The ambitious expansion plan is bolstered by Dubai’s strategic vision to attract international talent, digital nomads, and high-net-worth individuals through visa reforms, world-class infrastructure, and a growing luxury lifestyle economy. The increase in supply spans both affordable and high-end segments, with major developers launching new towers in areas like Dubai South, Business Bay, Arjan, and Dubai Marina.

However, while the supply pipeline reflects confidence in the market’s long-term resilience, international credit agency Fitch Ratings has issued a cautionary note. According to its latest assessment published by Reuters, Dubai could face a 10–15 % correction in residential property prices in H2 2025, citing potential oversupply pressures.

Fitch estimates that 210,000 new housing units—including the 73,000 planned for 2025—are scheduled for delivery over the next two years. The concern is that this rapid inventory increase, if not matched by demand, could exert downward pressure on prices, particularly in mid-tier segments.

Despite this, industry experts remain optimistic. Most major banks and developers are deemed well-capitalised and prepared for a potential market recalibration. Developers have diversified their portfolios, adjusted payment plans, and prioritised off-plan flexibility to mitigate risk and sustain buyer interest.

“Dubai’s market has matured significantly in the past decade. While short-term corrections are likely, they should be viewed as healthy market adjustments—not structural risks,” said a senior analyst at a UAE-based property consultancy.

Furthermore, ongoing demand from international investors, residency-linked property purchases, and rental yields above global averages continue to make Dubai attractive, even amid a potential softening in prices.

Key Takeaways:

• 73,000 new homes expected in 2025; 300,000 by 2028.

• 210,000 units set to enter the market by 2026.

• Fitch Ratings warns of 10–15 % price correction in late 2025.

• Banks and developers considered financially resilient.

• Long-term fundamentals remain strong, driven by population growth and foreign investment.

As Dubai prepares for a new phase of urban growth, stakeholders will be closely watching how the balance between supply and demand unfolds in the second half of 2025.