Supply glut keeps Dubai on sidelines of prime property upswing

Dubai, Buenos Aires only two cities in Knight Frank’s 25 prime locations list to see prime residential value decline.

A supply glut that’s held down Dubai’s property prices for over half a decade will likely keep it on the sidelines of a global upswing in values of prime residential real estate. Fast emerging from the pandemic slump, the construction industry will deliver an estimated 62,000 homes in the emirate this year and nearly 63,500 in 2022, which would be the most since 2009, according to consultancy firm Knight Frank LLP. The burst of supply will probably leave Dubai, alongside Buenos Aires, as the only two cities in Knight Frank’s selection of 25 prime locations to witness a decline in values for their top-end residential properties.