The Dubai property market is not expected to face an oversupply issue over the next four to five years, despite the numerous new launches in recent times, due to anticipated high demand absorbing the new supply.

Rizwan Sajan, founder and chairman of Danube Properties, highlighted that while there will be a substantial amount of new supply entering the market, the influx of investors into Dubai is equally significant. "There is a considerable number of people looking to make Dubai their second home. I foresee a massive surge in tourists once the gaming resort in Ras Al Khaimah opens in the coming years," Sajan stated in an interview with Khaleej Times.

He further added, "This will necessitate a significant number of properties and Airbnb-style accommodations in Dubai. I don’t foresee an oversupply in the next 4-5 years, as the gaming resorts are likely to double the tourist numbers. Many property owners will likely list their homes on short-term rental platforms."

Sajan also noted that not all visitors will choose to stay in Ras Al Khaimah, but many will visit the gaming facilities there and return to Dubai. "Ras Al Khaimah lacks sufficient properties and rooms to accommodate the expected influx, so Dubai stands to benefit greatly from this," he added.

As reported by Khaleej Times in August, the multi-billion dollar Wynn Al Marjan Island project, a joint venture with US-based Wynn Resorts, is progressing rapidly and is scheduled to open in Ras Al Khaimah in 2027, marking the region's first integrated gaming resort. Additionally, MGM Resorts’ CEO and president Bill Hornbuckle announced plans to build a gaming resort in Dubai during the Skift forum.

Dubai’s real estate market has seen a surge in new projects post-pandemic, particularly during 2023-2024, with many new mega projects launched by local developers. Foreign developers have also entered the market, launching small-scale projects.

According to preliminary numbers from Cavendish Maxwell’s Property Monitor, developers are aggressively launching projects, averaging more than one launch per day in the first quarter of 2024 in Dubai. In March 2024 alone, nearly 30 off-plan projects were launched, adding 10,000 units to the market.

Despite the rally in property prices over the past three and a half years, Sajan ruled out that prices have become unaffordable for a large number of investors. "Property prices in Dubai are still much more affordable compared to many global cities. We are still under-priced relative to many international cities," he said.

According to Savills Research, the average property price in Dubai is $800 per square foot, compared to $4,000 in Hong Kong, $2,600 in New York and Geneva, $2,100 in Shanghai, $1,900 in London, $1,800 in Singapore, $1,600 in Los Angeles, and $1,100 in Mumbai.

Challenges for developers include finding reliable contractors. "Every contractor wants to work with Danube Group. Plus, one of Danube Group’s subsidiaries supplies building materials, which ensures timely project completion," Sajan noted.

He also mentioned that smaller developers face difficulties in selling units as quickly as larger developers like Danube, which is among the top 10 developers in Dubai in terms of units. "Smaller developers are selling, but it may take more time."

Since its launch, Danube Properties has unveiled dozens of projects across Dubai worth Dh26 billion. Recently, it launched two new developments: Bayz102 in Business Bay and Oasiz in Dubai Silicon Oasis.

The 102-level Bayz102 will be the tallest in Danube's portfolio and a landmark addition to Dubai's skyline. One of its most groundbreaking features is the integration of a helipad for air taxis, revolutionising travel within the Emirates.

Bayz102 will also feature retail outlets and more than 40 amenities designed to enhance the lifestyle of its residents. "Bayz102 by Danube represents a new era in luxury living. We are thrilled to introduce this project, which sets a new benchmark for high-rise living and paves the way for the future of urban transportation in Dubai," said Rizwan Sajan.

Danube Properties is currently scouting for a few more plots in prime and affordable areas to launch new projects in the coming months.