Dubai Economy
Dubai is the second wealthiest emirate in the UAE, after Abu Dhabi which is the capital state. The city is an important trade and tourist destination with its port (Jebel Ali) operates at the center of export trade in the Middle East. With the introduction of the Dubai International Financial Centre (DIFC) in 2004, Dubai developed as a global hub for service industries such as IT and finance.
Over the last 12 months Dubai has seen significant growth in the luxury residential space with a new record of $10 million plus homes sold in Dubai so far this year.
Demographics of Dubai
Approximately 85% of the expatriate population (and 71% of the emirate’s total population) was Asian (chiefly Indian, Pakistani, Filipino, Bangladeshi and Sri Lankan). About 25% of the population have Iranian origin. About 3% of the total population of Dubai was categorized as “Western”.
Property needs
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.
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. Currently, the total number of residential units in Dubai stands at around 555,000. To service the total expected population level by 2040, we’re likely to need this number roughly double.
