2040 Dubai Plan
Up to 550,000 New Property Units Are Compulsory
â–ªï¸ Dubaiâ€™s population is expected to increase from the current 3.4 million to 5.8 million by 2040.
â–ªï¸ Residential property demand in Dubai will remain substantially strong over the next two decades, as the emirate will require almost the double of existing supply, because of a likely increase in the cityâ€™s population.
â–ªï¸ The supply of apartments and villas in Dubai is over 690,498 units as of 2020, catering to the cityâ€™s 3.4 million (m) population.
â–ªï¸ Dubai will require between 483,000 and 550,000 additional residential units over the next two decades to accommodate its estimated 5.4m population by 2040.
â–ªï¸ The requirement of new units is estimated between 24,150 and 27,500 a year.
â–ªï¸ An approximate household size of 4.9 per unit based on the population estimate of 3,411,200 from Dubai statistic centre as of 2020.
â–ªï¸ Around 483,550 additional units will be required by 2040.
â–ªï¸ Works out to around 24,000 units per year for the next 20 years.
Developing Further on Strong Fundamentals
â–ªï¸ Dubaiâ€™s 2040 Urban Master Plan reinforces Dubaiâ€™s competitiveness as a global destination.
â–ªï¸ Creating an environment where people from around the world can thrive with sustainability, diversity and inclusiveness as key focus areas.
â–ªï¸ Quantum of additional supply required over the next two decades is subjective and would be contingent on a number of quantitative and qualitative factors, some of which could see a marked change over the short to medium term.
â–ªï¸ Currently, the total number of residential units in Dubai stands at around 555,000. The total number of apartmentsâ€™ units in Dubai is at around 472,000.
â–ªï¸ Developers would have to understand how household incomes could change going forward and what would be its impact on demand on new housing units.
â–ªï¸ There will be a range of opportunities for developers from the affordable to the super-prime segments of the market, the middle-income segment of the market is likely to require the most significant quantum of supply to be delivered.