Dubai Faces Major Housing Imbalance Amid Rapid Population Growth
Dubai, UAE - Friday 7th November 2025 - Dubai’s booming real estate market is facing a critical supply mismatch, according to new data from Allsopp & Allsopp.
While developers are launching projects at an unprecedented rate, a widening gap between announced launches and actual completions, coupled with a heavy focus on apartments, is signalling a potential future oversupply in the high-density sector and an accelerating shortage of villas and townhouses.
The data highlights a significant market challenge, while new project announcements are incredibly high, the number of completed units is not keeping pace.
In 2024, developers launched 154,145 units, yet only 34,165 units were completed, meaning just 22% of the total launched were delivered.
This same trend has continued into 2025 (year-to-date), with 152,402 units launched year-to-date and only 31,437 units completed so far, representing around 21% of total launches - a similar figure to 2024. This demonstrates a growing pipeline pressure and signals that careful planning is required to align unit delivery with strong, sustained market demand.
The core of the imbalance lies in the type of property developers are building. A closer look at the data shows developers’ strong focus on high-density apartment projects, which could tilt the market further toward saturation in the coming years. Of the 152,402 units launched in 2025 so far, a staggering 89% were apartments, with just 11% dedicated to villas and townhouses.
Meanwhile, population growth in Dubai remains strong. In the first quarter of 2025 roughly 1,00 new residents moved to Dubai per day, with an estimated annual increase of over 130,000 people this year alone hitting the four million mark. The pressure on facilitating the housing demand is clear.
Given that new launches are skewing so heavily towards apartments the numbers suggest there is a risk of a continued shortage of villas and townhouses which are typically the best suited options to growing families and longer‑term residents.
By contrast, completions reflect a more balanced distribution of 25% for villas and townhouses versus 75% apartments - suggesting that although villa handovers are rising proportionally, developers remain heavily invested in apartment supply pipelines.
“An increase in apartment supply isn’t inherently negative, it’s actually essential to a balanced market,” says Lewis Allsopp, Chairman of Allsopp & Allsopp. “Apartments cater to singles, couples, young families, first-time buyers and investors - the very buyers who need an accessible entry point into Dubai real estate. Keeping a strong, well-priced pipeline is how we ensure Dubai remains affordable, supports rental stability, and truly is a home for everyone.”
Currently, areas such as Jumeirah Village Circle, Townsquare, DAMAC Hills, Arjan, and Studio City are seeing a particularly high apartment supply, catering to tenants who want modern, affordable, flexible living options. Maintaining this level of supply ensures that Dubai can accommodate a diverse resident base without creating shortages or significant spikes in rent.
To support this, Allsopp & Allsopp observed strong market activity in October, with sales of properties below AED 1 million rising 58% and sales in the AED 1-3 million range increasing by 18%, reflecting solid demand across the more affordable segments. While this momentum is encouraging, it is crucial that developers carefully plan future completion cycles to address the continued villa shortage and restore balance to the market, particularly as Dubai continues to attract a growing number of residents.
About Allsopp & Allsopp
Allsopp & Allsopp is Dubai’s highest-awarded independent real estate agency. Founded in 2008 by Lewis Allsopp (Chairman) and Carl Allsopp (CEO), the company is recognised for its innovative, transparent approach to real estate, using data-driven tools and expert insights to help clients make informed property decisions.
For media enquiries, please contact:
Emily Bates, PR & Communications Manager +971 58 598 6637