Is the Dubai Real Estate Market Cooling Down?

Some investors are wondering if Dubai's real estate growth is slowing. It’s a good question, and a sign you’re thinking long term.

Here’s where we stand: Dubai isn’t overheating. It’s rebalancing.

Growth remains healthy. Fundamentals remain strong. And with the right diversification, there’s no need to worry.

Real Estate Moves In Cycles

All markets, including London, New York, and Singapore go through natural cycles. Dubai is no different. What matters is how your portfolio is positioned.

Right now, supply is moving closer to demand. It’s a sign of a healthy, maturing market meeting demand. However, demand is still ahead of supply.

Dubai’s population hit 4 million in August 2025. The population has doubled in 14 years, and at this rate, Dubai’s population could reach five million by 2032 and six million by 2039.

Why Real Estate Still Stands Out

Compared to other asset classes, property continues to offer unique advantages:

• Stocks: Volatile and sentiment-driven
• Crypto: Speculative and unregulated
• Gold: Stable but income-free

Real estate offers tangible assets, consistent rental yields, and long-term capital growth, without daily whiplash. It’s slower but steady growth, which is why it has always been a part of wealth plans.

Dubai real estate market gained 17% year-on-year in 2024. It was driven by:

• Strong demand
• Limited delivery of new supply
• Zero local income tax
• A growing economy welcoming investors and residents

Disclaimer: Property values tend to be less volatile than other asset classes, but can still decline in certain market conditions.

Supply Is Tighter Than It Looks

Everyone talks about rising supply. But delivery is falling short:

• In 2025, just 62% of forecasted projects are on track
• In 2026, only 48% are expected to be delivered

Across both years, only 53% of projected units may materialize. That’s constrained delivery against rising demand.

Result? Market fundamentals stay strong.

Stake’s Strategy: Built For All Seasons

Our approach helps to manage risk and capture value across cycles. Here’s how:

Geographic diversification

• Exposure to multiple Dubai areas
• Property funds in Saudi Arabia

Property type and location mix

• From studios to villas, across a variety of Dubai neighborhoods
• Focus on prime areas with resilient demand

Dual-income approach

• Capital growth potential
• Consistent rental income on some properties and funds

So even if price growth slows, your portfolio can keep working through steady rent.

The Bigger Picture

More supply is good. It signals confidence. It helps moderate prices. And it creates strategic entry points for long-term investors.

Dubai isn’t deflating. It’s evolving, from jump to balance. That’s exactly when disciplined portfolios outperform.

What this means for your portfolio

• Already invested? Stay the course. Diversification protects your downside, while rental income continues compounding.
• Thinking about entering? Rebalancing periods often create the best entry windows. Wait too long, and you risk missing value.

Bottom line

Property is a long-term game. Markets fluctuate, but your strategy shouldn’t. With the right mix of assets, geographies and income streams, you can build wealth through every cycle.

At Stake, we’re positioning portfolios for what comes next.

Want to see our available Dubai properties and Saudi funds? Download the app.

All Investments carry risks. Stake Properties Limited is regulated by the DFSA as an Operator of a Crowdfunding Platform in the UAE and Stake Funds is regulated by the CMA as a Fund Distributor in KSA.