Dubai is grappling with a significant housing crisis as its population growth continues to outstrip the supply of new residential units. According to the Dubai Data and Statistics Establishment, the emirate’s population surged by 17,660 in just one month, reaching 4.04 million by mid-November 2025. This influx of expatriates, professionals, and investors has created a demand for approximately 150 new homes daily, yet only 7,800 units were delivered in the third quarter of 2025, with another 14,900 expected in the fourth quarter. This annual total of 44,000 units falls short of the housing needs generated by the city’s rapid population growth.
Experts warn that this imbalance is likely to persist for the next three to four years, driving up property prices and rentals. Ghassan Saliba, CEO of Stage Properties, emphasized that even the units currently being sold or released are insufficient to meet demand. He noted that the city’s infrastructure, including roads and bridges, is also under strain due to the growing population.
To address the housing shortage, Dubai announced in March 2025 the allocation of land to develop over 17,000 affordable units across the emirate. Additionally, the government introduced initiatives such as the First-Time Home Buyer Programme, which offers eligible residents priority on new launches, preferential pricing, and easier mortgage pathways for homes valued up to Dh5 million.
Despite these efforts, concerns remain about the long-term sustainability of Dubai’s housing market. The Dubai 2040 Urban Master Plan aims to increase the city’s population to 5.8 million by 2040, requiring an estimated 128,000 new residents annually. However, with current housing delivery rates at only half of what is needed, there is a risk that new residents and potential buyers may be priced out of the market, potentially limiting population growth in the future.