Dubai real estate likely to see slower handover in 2025-26

The Dubai property market is expected to experience a notable slowdown in residential unit handovers in 2025 and 2026, falling short of anticipated supply, according to a new report by Morgan’s International Realty.

- Waheed Abbas

The real estate firm estimates that only 62 per cent of the expected residential supply for 2025 will be delivered. Out of an anticipated 37,171 units, only 22,896 are projected to reach completion.

The outlook is even more subdued for 2026, with just 48 per cent — or 34,740 out of 71,613 forecasted units — expected to be completed. In total, in both years, only 57,636 of the projected 108,784 units are likely to be delivered, representing a combined completion rate of approximately 53 per cent.

These figures reflect a persistent trend.

According to Fitch Ratings, from 2022 to 2024, only 97,000 out of the 174,000 projected units were delivered — a completion rate of 56 per cent. Fitch attributes the lag in deliveries to factors such as difficulty in securing quality contractors, project sales timelines, funding delays from banks, and buyer payment issues.