Dubai new home supply likely to ease


Dubai property prices have had one of their best streaks in decades.Photographer: Natalie Naccache/Bloomberg

DUBAI: The chief executive officer (CEO) of Dubai’s Union Properties PJSC expects surging construction and land costs to put the brakes on the supply of new homes in the emirate’s booming real-estate market. 

“The market is going to regulate itself over the coming two years, just by the inflation and construction costs and inflation in land value,” said Amer Khansaheb, the CEO of Union Properties, a small publicly traded developer in the emirate that has seen its stock surge over the past two years.

“This should be good for investors because as supply comes down a bit, it will regulate the demand.” 

Dubai property prices have had one of their best streaks in decades.

Home prices surged more than 75% since the end of November 2020, according to Knight Frank.

Developers have been launching a steady stream of projects amid rising demand from oversees investors and an influx of new residents coming from around the world. — Bloomberg

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