Dubai Plan 2040: Up to 550,000 new property units required

Dubai - Dubai’s population is expected to increase from the current 3.4 million to 5.8 million by 2040.

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 city’s population, according to industry analysts.

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According to the Dubai Statistics Centre, the supply of apartments and villas in Dubai is over 690,498 units as of 2020, catering to the city’s 3.4 million (m) population.

Analysts estimate that 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.

The requirement of new units is estimated between 24,150 and 27,500 a year.

Under the 2040 Urban Master Plan that was launched in early March, Dubai’s population is expected to increase from the existing 3.4m to 5.8m by 2040. The emirate will have five main urban centres, including two new ones.

“Assuming 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, around 483,550 additional units will be required by 2040. This works out to around 24,000 units per year for the next 20 years,” said Prathyusha Gurrapu, Head of Research and Advisory at Core.