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Why a Dubai property market downturn is not inevitable

Many people speculate about a downturn in the property market, but in reality, what we see are minor corrections within specific neighbourhoods. Overall demand continues to rise, and population growth shows no signs of slowing.

Population growth and housing demand

Until 2040, Dubai will need to build between 37,000 and 87,000 new homes per year to keep up with demand. The population is growing steadily, supported by economic growth and a stable, low-risk environment. These are the same factors that sometimes warn of a decline, yet simultaneously confirm the growth.

Temporary peak in supply

The majority of new homes are being delivered between now and 2028. After this, the annual number of new homes drops significantly, meaning developers will have to catch up. This creates long-term scarcity, particularly in popular communities.

The ideal time to enter the market

The best investment opportunities often arise during periods of uncertainty. Those who buy now, while others hesitate, can benefit from price increases once the market stabilises. Opportunities often disappear without warning.

The role of high-net-worth individuals in the market

More than 81,000 millionaires call Dubai home, and 6,700 are added each year. This growth in affluent residents creates a strong foundation for sustained demand for luxury property, which is the ideal recipe for long-term price appreciation.

Conclusion

Although some neighbourhoods may show minor price decreases, the overall trend in Dubai remains positive. Thanks to population growth, a constrained supply after 2028, and an influx of wealthy residents, the future of the property market looks robust.

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