Real estate developers in Dubai are dismissing concerns about an oversupply in the market stating that strong demand is keeping property prices on the rise. Despite increasing supply and record transaction volumes, prices in prime areas like Palm Jebel Ali, Business Bay, Downtown and Dubai Marina continue to reach new highs.

Developers argue that the sustained price growth proves there is no oversupply. It is pointed out that even compared to global cities like Hong Kong and London, Dubai remains affordable making it an attractive investment.

Prices for villas and townhouses have surged by 75% year-on-year while apartments have risen by 55%, according to Allsopp & Allsopp’s October 2024 report. October also saw a historic 82% year-on-year increase in property transactions with over 20,460 units sold.

Industry experts like Lewis Allsopp from Allsopp & Allsopp emphasize the long-term benefits of owning property in Dubai, citing consistent capital appreciation and strong equity growth.

Notable areas to watch include Al Jadaf and Dubai Island where property prices have risen sharply, up 40% in Al Jadaf. Developers are also focusing on these areas for future projects. Kasco Developments, for example, is investing Dh1.2 billion in Business Bay and Al Jadaf with a focus on appealing to European investors seeking safe, stable opportunities outside their home countries.

Dubai’s property market shows no signs of slowing down with continued strong demand and rising prices across multiple sectors.