Real estate industry executives suggest that some tenants who had moved to other emirates might return to Dubai due to the impact of new residential property supply on rent prices amid increasing traffic challenges for commuters.

According to Property Monitor data, a total of 648 projects were launched in the year, introducing over 167,000 units to the market in 2025.

Projections indicate a continuous rise in property supply in the emirate over the next few years, driven by ongoing and upcoming projects.

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As Harrison Rackham-Beadle, sales director of haus & haus, noted, the wave of new supply expected from 2026 onwards will provide tenants with more choices, potentially leading to competitive pricing and emphasizing quality, condition, and realistic rents over scarcity.

Who will relocate?

Rackham-Beadle mentioned that tenants who had moved from Dubai to other emirates due to high rents could consider returning as rent hikes slow down and prices decrease in certain communities.

He added, “Many tenants may have relocated for affordability reasons rather than preference, and with potentially more attractive rents in Dubai, the benefits of proximity to work and lifestyle amenities become more appealing.”

Affordable unit supply

Bhaskara Santosh Punuru, partner and development manager at Arthouse Hills Arjan, suggested that offering properties in the Dh1 million to Dh2 million range could attract individuals from Ajman and Sharjah back to Dubai.

He stated, “Once this segment enters the market, many people may be motivated to return to Dubai. With good rental options in the next two to three years, increased supply will provide sufficient choices for people to come back.”

Rohit Bachani, co-founder of Merlin Real Estate, highlighted the need for quality, end-user housing, especially in the mid-market apartment and townhouse segment, suggesting that the current supply scenario is not a conventional oversupply situation.

“Developments focusing on practical layouts, community planning, nearby schools, ample parking, and everyday amenities continue to maintain high occupancy rates even during periods of significant handovers,” he emphasized.

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