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Dubai Real Estate Market to Record All-Time High Housing Supply in 2026 | New Projects Trending Downward

Dubai Real Estate Market to Record All-Time High Housing Supply in 2026 | New Projects Trending Downward

2026/08/20Property Information
#Dubai Property Market#Housing Price#Developer Info

Dubai Housing Supply in 2026 to Reach Highest Level Since 2008

The Dubai real estate market in 2026 is projected to be a historic year, with the highest number of homes delivered in approximately two decades. According to a report for the first half of 2026 released by real estate consultancy Cushman & Wakefield Core, the total annual supply is expected to reach approximately 55,600 units.

This figure marks the highest level since 2008, prior to the financial crisis. Concurrently, the launch of new projects is on a downward trend, suggesting the market is entering a new phase.

H1 Performance and H2 Outlook

In the second quarter of 2026, 13,218 residential units have already been completed and handed over. An additional supply of approximately 32,000 units is anticipated in the second half of the year, indicating that the annual plan is progressing smoothly.

Furthermore, over 60,000 residential units are projected for delivery in 2027, suggesting continued expansion of Dubai's housing market.

Key Projects Completed in Q2 2026

Key properties completed this quarter include:

  • Apartments

    • Crest Grande at Sobha Hartland (965 units)
    • Skyhills Residences 1 in Dubai Science Park (635 units)
    • City Tower on Sheikh Zayed Road (608 units)

  • Villas

    • Malta 1 and Costa Brava 1 at Damac Lagoons (760 and 555 units, respectively)
    • Jebel Ali Village Townhouses Phases 1-3 (614 units)
    • Elora at The Valley (430 units)

New Project Launches See Significant Decline

In contrast to the record housing supply, new project launches have decreased significantly. In the first half of 2026, new apartment launches fell by approximately 58% year-on-year, while villa launches saw an even sharper decline of about 78%.

This trend is believed to be influenced by factors such as supply chain constraints in the construction industry, issues with contractor capacity, and changes in market conditions.

Future Outlook for Dubai's Real Estate Market

A decrease in new project launches may impact the transaction volume of off-plan properties in the short term. However, in the medium to long term, this trend has positive implications for enhancing market health.

It is expected that an adjusted pace of supply will improve the balance between demand and supply, fostering a more stable market environment. Out of approximately 525,000 planned units, only about 186,000 have construction progress exceeding 20%, suggesting that the actual number of completed units may be slower than planned.

Summary

In 2026, the Dubai real estate market is set to record its highest housing supply since 2008, while new project launches are slowing down. This movement indicates that the market is transitioning from overheating to stabilization, entering a phase aimed at more sustainable growth.

Reference: Khaleej Times - Dubai set for highest annual home deliveries since 2008 as new launches slow